Fidelity, Vanguard and iShares were among the most popular asset managers with DIY investors on AJ Bell’s platform in 2022.
Vanguard’s tracker funds and ETF made up five of the top 10 funds bought by investors on the platform, followed by two iShares and Fidelity funds apiece.
Five of the top 10 most popular funds were exchange-traded funds, which Laith Khalaf, head of investment analysis at AJ Bell, said could be a tactical move by investors.
Most popular investments with AJ Bell’s DIY investors in 2022
Funds | Trusts | Shares |
FUNDSMITH EQUITY | SCOTTISH MORTGAGE | LLOYDS |
VANGUARD S&P 500 ETF | SCOTTISH INVESTMENT TRUST | BP |
FIDELITY INDEX WORLD | CITY OF LONDON | LEGAL & GENERAL |
VANGUARD LIFESTRATEGY | BLACKROCK WORLD MINING | ROLLS ROYCE HLDGS |
ISHARES CORE FTSE 100 ETF | SMITHSON | TESLA INC |
VANGUARD FTSE GLOBAL ALL CAP INDEX | RIT CAPITAL PARTNERS | SHELL |
VANGUARD FTSE ALL-WORLD ETF | GREENCOAT UK WIND | BARCLAYS PLC |
ISHARES S&P 500 ETF | MONKS INV TRUST | RIO TINTO |
FIDELITY GLOBAL SPECIAL SITS | FINSBURY G&I TST | VODAFONE GROUP |
VANGUARD FTSE 250 ETF | JPM GLOBAL GROWTH & INC | UNILEVER PLC |
Source: AJ Bell, January to December 2022, ranked by number of buy trades.
“Because ETFs trade throughout the day, they offer investors a live price they can buy at, whereas funds work on a forward pricing basis, which means markets may have rebounded by the time your fund purchase has produced your purchase price.
“In the long term one day’s movement won’t make too much difference, but it’s understandable that when volatility is high, investors prefer the immediacy and certainty of ETF pricing,” he said.
Despite the move towards passive investing, Fundsmith Equity remained in the top 10 of funds bought, and Baillie Gifford’s Scottish Mortgage Investment Trust maintained its position in the top 10 trusts.
This is despite Fundsmith Equity losing 13 per cent so far this year.
Growth will have its day againLaith Khalaf, AJ Bell“It is notable that DIY investors aren’t throwing out Terry Smith’s baby with the bathwater,” Khalaf said.
Neither fund nor trust has changed its spots, so there’s no real reason for investors to jump ship purely because they are enduring a tough patch, he said.
“But this year’s rotation from growth to value does illustrate why investors should hold a balanced portfolio with a foot in both camps, and just as it was unwise to bet the whole farm on growth last year, it’s imprudent to swing the other way and go Hollywood or bust on value funds now.
“Growth will have its day again, but no-one knows when that will be, so it’s best to own a blend of growth and value managers in your portfolio.”
sally.hickey@ft.com
