10 hottest ISA shares, funds and trusts: week ended 6 September 2024

We look at the investments ii customers have been buying within their ISAs during the previous week. The data includes only real-time trades, not regular investing instructions, and combines the use of both existing funds and new money. 

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Top 10 shares in ISAs

BP (LSE:BP.) has gained popularity in recent weeks as the share price slumped to levels not seen in two years. Trading as high as 541p in April, you could have bought them for as little as 405p in recent sessions. 

Top of the charts for the first time since May, investors are clearly betting that the sell-off is overdone, especially as rival Shell (LSE:SHEL) is down a more modest 13% since mid-April compared with 24% at BP.

BP has boosted shareholder returns, including an extended share buyback programme, and currently offers a forecast dividend yield of about 5.8%. However, issues raised at first-quarter results in April and again in July, including disappointment around results and margins, continue to weigh.

“Although the stock trades at a discount to the sector, execution over recent quarters has been subpar and not tracking towards guidance,” wrote Morgan Stanley last week. “Also, in context of a more cautious view on commodity prices, we see a relatively tight financial framework. Therefore, we prefer to stay equal-weight.”

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Rio Tinto Registered Shares (LSE:RIO) and Glencore (LSE:GLEN) are among mining companies attracting buying interest. Both are down over 20% since a three-month sector rally ran out of steam toward the end of May. Poorly received corporate updates, concerns about demand from China and weak iron ore prices continue to overhang the sector. Still Rio jumped four places to third in our table, and Glencore rose three to seventh.

M&G Ordinary Shares (LSE:MNG) bounced back into the top 10 most-bought stocks in ISAs on the ii platform last week in response to better than expected first-half results.

A 4% decline in adjusted operating profit to £375 million was still more than the £355 million pencilled in by City analysts. Decent numbers and a near-10% dividend yield also persuaded analyst Edmond Jackson to continue backing the stock in his latest article for ii.

Top 10 funds and trusts in ISAs

Investors bought the dip in mining shares last week, allocating capital to BlackRock World Mining Trust Ord (LSE:BRWM) to make it the most popular collective investment on our platform.

The trust lost 8% over the past five trading days as commodity prices fell, which has dragged down the share prices of mining firms. Worries around economic growth are impacting the outlook for the commodities sector, with oil-related shares also performing poorly over the past month.  

But ii customers saw this as an opportunity to add to the high-yielding trust, which now offers a 7% dividend yield based on the last 12 months of dividend payments.

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It knocked Scottish Mortgage Ord (LSE:SMT) off the top spot, which fell two places to third. Other fallers over the past week were Royal London Short Term Money Market (down two places to fifth); Jupiter India (down three places to eighth); and L&G Global Technology Index (down five places to ninth). 

The risers were Alliance Trust Ord (LSE:ATST) (up two places) and Greencoat UK Wind (LSE:UKW) (up four places), while Vanguard LifeStrategy 80% Equity held on to second place.

There were two new collectives on the list: JPMorgan Global Growth & Income Ord (LSE:JGGI) in seventh and City of London Ord (LSE:CTY) in 10th. 

With these additions, eight of the top 10 collectives were actively managed funds last week. HSBC FTSE All-World Index and Fundsmith Equity fell off the most-bought list.

Funds and trusts section written by ii’s Sam Benstead.