The most popular companies being bought within ISAs so far this year.
2018 ISA investors seeking income and adventure
|Top purchased stocks in ISAs*||Top purchases stocks in ISAs by Millennials (aged 18-36)||Top purchased sectors by those aged 60+|
|1||Lloyds Banking||Greatland Gold||National Grid|
|2||National Grid||GlaxoSmithKline||Lloyds Banking|
|6||Royal Dutch Shell||The People's Operator||Royal Dutch Shell|
|8||Aviva||Petrofac||Legal & General|
|10||Imperial Brands||88 Energy||Aviva|
*Data is based on the number of ‘buy’ trades made by customers within ISAs at The Share Centre between 01/01/2018-23/03/2018
So far this year, investors in general, are demonstrating a desire for income, cemented by nine of the top ten purchased stocks in ISAs so far this year offering a good yield. The top three companies outlined in the table specifically offer in excess of 5% - Lloyds 6.4%, National Grid 5.7% and GSK 5%.
The data reinforces the same theme that we were seeing this time last year where customers were searching for lower risk, safer investments in the run up to the General election. Given the market volatility that investors have had to navigate so far this year, it’s therefore unsurprising that once again the majority are seeking steady, reliable and bigger blue chip companies.
Having said that, market volatility hasn’t put off millennials – in fact the number of trades made by the cohort within ISAs has increased 10% year-on-year. As would be expected, they appear to have a higher attitude to risk compared to other age groups as only two of the top ten investments made by 18-36 year olds in 2018 are in larger, income generative companies, perhaps indicating the adage of their generation, ‘you only live once’ is coming through to their investing portfolios.
Another theme coming through for Millennials is invest in what you know, with online retailer Boohoo and mobile phone networks Vodafone and The People’s Operator featuring. Experience tells us that when investors are ready to opt for a punt, they tend to go for a smaller company within the Mining and Oil and Gas sectors, essentially because there is a constant interest and relevance to our day to day lives. As the group of investors are clearly being more adventurous, it’s therefore no surprise that the majority of the remaining investments fall in to these sectors, hoping for a quick win.
What’s most encouraging is that overall; investors are recognising the importance of utilising the tax free benefits of investing in a stocks and shares ISA with activity and inflows up 5% and 8% already, respectively.
All information given including prices, yields and our opinion is correct at the time of publication. Our opinions on investments can change at any time and for our latest view please go to www.share.com. To understand how our Investment research team arrive at their views please read our Investment Research Policy.