Top 10: what funds did investors buy in November?

US markets and the dollar were firmly in the driving seat in November, following a decisive election result. The Dow Jones Industrial Average and S&P 500 both made new record highs while US smaller companies, with their relatively high exposure to America’s domestic economy, performed even more strongly. Technology companies were generally buoyed by strong results announcements, although Nvidia disappointed with its outlook for revenues in the fourth quarter.

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In contrast, markets in Europe remained under pressure for much of the month as investors fretted about a fragile economic growth outlook and possible future threats to exports. Fears of draconian US tariffs weighed on markets in Japan and the rest of Asia too.

Short term interest rates moved lower following rate cuts in the US and the UK. Conversely, 10-year government bond yields temporarily increased amid concerns about the possible inflationary consequences of government policy shifts. 

Fidelity’s personal investors appeared to take their cue from the US election in November, buying more US tracker funds than we have seen before, including three names entirely new to the best sellers lists. As previously, funds investing in money markets and technology companies were popular choices, however, no UK equity funds made the grade for the first time this year.
 
The MSCI World Index continued to make headway in November in sterling terms, largely as a result of the strength of US markets and the dollar. The Fidelity Index World Fund, which tracks this index on a net total return basis, was the most bought fund for both ISAs and SIPPs. Returns are automatically converted back into sterling, providing UK investors with a straightforward and cost-effective route to geographic diversification. 

Money market funds took three of the top-10 positions for both ISAs and SIPPs. That was even after the Bank of England cut its Bank Rate for the second time this year. Expectations of a further cut in December faded somewhat in November as markets attempted to weigh-up the inflationary aspects of the Budget.   

The Fidelity Cash Fund took second place for both ISAs and SIPPs in November, keeping company with the Royal London Short Term Money Market Fund and the Legal & General Cash Trust further down the tables. The Legal & General Cash Trust is benchmarked to its money market peers, while the other two funds aim to outperform the Bank of England’s SONIA interest rate. This rate fell from 4.95% to 4.7% over the course of the month¹. 

The Fidelity Index US Fund was a notable climber, rising from fifth place to third for ISAs and from tenth to third for SIPPs. Like the Fidelity Index World Fund above, this fund tracks its target index (the S&P 500 in this case) on a net total return basis.

An increased interest in the US following the presidential election was reflected in three new entrants – the UBS S&P 500 Index Fund, the Vanguard US Equity Index Fund and the Legal & General US Index Trust. These are subtly different from one another, in that the Vanguard fund aims to track the S&P Total Market Index while the L&G fund targets the FTSE USA Index. Both of these indices include smaller companies, which are not covered by the S&P 500. 

As in October, the Legal & General Global Technology Index Trust took both fourth places. This fund tracks the FTSE World Technology Index and had 255 holdings at the end of October. The ten largest holdings – led by Apple, Nvidia and Microsoft – now make up just over 70% of the portfolio². 

The Fidelity Global Dividend Fund dropped two places to fifth for ISAs and was absent from the SIPP best sellers list having been the fifth best seller for SIPPs in October.  This fund aims for a dividend-based total return, with capital preservation its top priority. Manager Dan Roberts currently sees opportunities in the industrials sector (about 18.5% of the portfolio) given ongoing themes such as electrification, automation and re-shoring. Financial services companies still account for the largest sector weighting though, at just under 27%. 

The Fidelity Global Technology Fund climbed two places to sixth for ISA purchases and returned to the top-10 for SIPPs in eighth position. This actively managed fund has the ability to own reduced positions in the market’s biggest tech stocks or miss them out altogether. The fund’s top 10 holdings currently account for around 38% of a 103 stock portfolio and include Taiwan Semiconductor, Sweden’s Ericsson and the Chinese e-commerce giant Alibaba.

The Rathbone Global Opportunities Fund returned to the top-10 for ISA purchases in seventh place, having last featured here in June. This fund targets a relatively small number of global companies that are growing quickly and shaking up their industry groups. The Fund currently holds 53 stocks and has Nvidia, Costco and Microsoft as its top holdings. Amphenol – a US supplier of electronic and fibre cables and connectors which entered the portfolio in April – is now in fourth place. 

Completing the table for SIPPs were the Legal & General Global Equity Index Fund and the Vanguard LifeStrategy 80% Equity Fund. The former aims to deliver a combination of growth and income by tracking the FTSE World Index. The Vanguard fund is a multi-asset portfolio sitting at the more aggressive end of Vanguard’s LifeStrategy family of funds. While it invests mostly in index tracking funds from the Vanguard stable, there is an active element to it in that the manager decides which funds are selected and how much is allocated to each. 

Dropping out of the top-10 best selling funds in November were the Fidelity Multi Asset Allocator Growth Fund and the Jupiter India Fund. 

Top 10 best-selling ISA funds on Fidelity Personal Investing in November 2024 

1. Fidelity Index World Fund 
2. Fidelity Cash Fund 
3. Fidelity Index US Fund 
4. Legal & General Global Technology Index Trust 
5. Fidelity Global Dividend Fund 
6. Fidelity Global Technology Fund 
7. UBS S&P 500 Index Fund 
8. Rathbone Global Opportunities Fund 
9. Royal London Short Term Money Market Fund 
10. Legal & General US Index Trust 

Top 10 best-selling SIPP funds on Fidelity Personal Investing in November 2024 

1. Fidelity Index World Fund 
2. Fidelity Cash Fund 
3. Fidelity Index US Fund 
4. Legal & General Global Technology Index Trust 
5. Legal & General Cash Trust 
6. Vanguard US Equity Index Fund  
7. Royal London Short Term Money Market Fund 
8. Fidelity Global Technology Fund 
9. Legal & General Global Equity Index Fund 
10. Vanguard LifeStrategy 80% Equity Fund 

Source: Fidelity International. Gross ISA and SIPP sales in November 2024 for Personal Investors only. 

Sources  

¹ Bank of England, 04.12.24 

² LGIM, 31.10.24 

³ Rathbones, 31.10.24 

Important information - Important information - investors should note that the views expressed may no longer be current and may have already been acted upon. Before investing into a fund, please read the relevant key information document which contains important information about the fund. Eligibility to invest in a SIPP or ISA and tax treatment depends on personal circumstances and all tax rules may change in the future. Withdrawals from a SIPP will not normally be possible until you reach age 55 (57 from 2028). Overseas investments will be affected by movements in currency exchange rates. Investments in emerging markets can be more volatile than other more developed markets. Reference to specific securities should not be construed as a recommendation to buy or sell these securities and is included for the purposes of illustration only. This information is not a personal recommendation for any particular investment.  If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice.