10 hottest ISA shares, funds and trusts: week ended 9 August 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

Insurance and investment giant Legal & General Group (LSE:LGEN) is regularly among the most-bought stocks in ISAs on the ii platform, but it tops this list for the first time in six weeks.

Catalyst for interest this time was half-year results to 30 June. A broader stock market sell-off had dragged L&G shares to prices not seen since late last year. But results published a couple of days later encouraged buyers.

• More to come from Legal & General after these results
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The retirement and retail divisions did well, offsetting some weakness at the Asset Management business. And any dip in share price has typically boosted interest give the shares currently offer a dividend yield of 9%.

Analysts at JP Morgan raised their price target to 290p and stuck with their “overweight” recommendation.

John Wood Group (LSE:WG.) was in the news after Sidara, which had been in talks with the company about a 230p-a-share bid, said it would not make an offer for Wood because of “rising geopolitical risks and financial market uncertainty”.  

Wood shares slumped from 200p to close at 128p. Clearly, investors see this as another buying opportunity given a second bid for the company has failed. Might it be third time lucky?

• Stockwatch: third time lucky for this takeover target?
• Why Glencore shares now offer 30% upside

Elsewhere, investors piled into Rolls-Royce Holdings (LSE:RR.) just a week after well-received results. Shares were dragged lower in the market sell-off, which was too good an opportunity for some to miss. 

M&G Ordinary Shares (LSE:MNG) is back in the top 10 for the first time since May. It was also a victim of the wider correction, and another 9%-plus dividend yield that investors were tempted to lock in.

And finally, Glencore (LSE:GLEN), which has been out of favour for the past month or so. The miner and commodity trader Glencore has abandoned plans to spin off its coal business, expanded when it paid $9 billion for Teck Resources’ coal assets. Half-year results missed City forecasts too.

However, analysts like significant cash flow from the coal business that will fund longer-term growth opportunities in its transition metals portfolio and allow the possible resumption of top-up shareholder returns.

Goldman Sachs and Citigroup rate Glencore shares a ‘buy’ with price targets of 520p and 530p respectively.

Top 10 funds and trusts in ISAs

Investors bought the dip in technology shares last week, pushing Scottish Mortgage Ord (LSE:SMT) and L&G Global Technology Index up one place each to first and second place in this top 10 most-bought list.  

Fears about a US recession, coupled with profit taking and scepticism about the potential of artificial intelligence (AI), caused tech shares to tumble in the first week of August, with the Nasdaq 100 now about 9% below its most recent peak.  

However, ii customers saw an opportunity to add to funds investing in the sector, betting that the strong long-run returns of technology would not be disrupted.  

• Popular technology trust explains sell-off and opportunities
• Nvidia share crash: second bite of the cherry or red flag?

The other riser last week was Vanguard LifeStrategy 80% Equity, which climbed two places to fourth. Meanwhile, Greencoat UK Wind (LSE:UKW) dropped two places to third and JPMorgan Global Growth & Income Ord (LSE:JGGI) fell one place to fifth.   

Half last week’s most popular funds and investment trusts in ISAs were new entries in the top 10.  

Three global tracker funds broke into the list: HSBC FTSE All-World Index, Vanguard LifeStrategy 100% Equity and Fidelity Index World. They all have subtly different portfolios. The Vanguard fund is a “fund of funds” that includes bonds and dedicated country portfolios, such as the UK and Japan. Fidelity Index World owns the largest 1,500 shares from developed countries, while the HSBC tracker has 3,500 positions, including about 7% invested in emerging markets like India and China.  

The other new entries were Alliance Trust Ord (LSE:ATST) and City of London Ord (LSE:CTY). Jupiter India, Polar Capital Technology Trust, Royal London Short Term Money Market, Fundsmith Equity and Allianz Technology Trust all dropped off the most-bought list, but remained popular.  

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