- US markets remain popular with UK investors
- UK continues to see more sellers than buyers
- Appetite for gold ebbs away as rates promise higher for longer
Investors in the UK continued to commit cash to inexpensive US ETFs during September, according to latest data from investment platform AJ Bell. Most popular was the Vanguard S&P 500 UCITS ETF (VUSA), with purchases of the sterling and dollar denominated versions together accounting for nearly 21% of ETF purchases across the platform in September, filling the top two spots.
The iShares Core S&P 500 ETF (CSPX) took third spot.
Eight of the S&P 500’s 10 largest companies are mega cap tech stocks, including Apple (AAPL:NASDAQ), Microsoft (MSFT: NASDAQ), Facebook-owner Meta Platforms (META:NASDAQ), and Tesla (TSLA:NASDAQ), with Warren Buffet’s Berkshire Hathaway (BRK.B:NYSE) and $470 billion oil giant Exxon Mobil (XOM:NYSE) the sole ‘old economy’ companies featuring in the top 10.
UK INDEX BUYERS REMAIN OUTNUMBERED
But Brit investors continue to shun the UK market, with more money being pulled out of UK index ETFs than put in. The iShares Core FTSE 100 ETF (ISF) was the single most sold ETF last month, capturing more than 10% of all ETF sales volumes, the data shows, versus an equivalent 5.65% of net purchases.
| Top 10 ETFs buys in September |
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| Source: AJ Bell, % = volumes of all purchases on AJ Bell platform in September |
The Vanguard FTSE 100 UCITS ETF (VUKE) was also a popular sale, making up around 2.5% of all ETF exits on AJ Bell in September. The Vanguard FTSE 250 UCITS ETF (VMID), which tracks the UK mid-caps index and is typically more popular with growth-hungry investors, only marginally won investor backing last month, with net trades (buys minus sales) accounting for just 0.38% of all ETF deals.
Gold also is losing its glitter, the data shows, with purchases of the iShares Physical Gold ETC (SGLN), which account for 2.95% of all buys, significantly offset by sales. Deal volumes show the gold ETC accounted for 5.08% of all sales, meaning net sales by trade volumes of 2.13%.
Readers can access the most popular stocks, funds, ETFs and investment trusts on the AJ Bell platform, over a day, week and month by clicking here.
Disclaimer: Financial services company AJ Bell referenced in the article owns Shares magazine. The author of the article (Steven Frazer) and the editor of the article (James Crux) own shares in AJ Bell.
