Money market fund purchases leapt 77% in the first half of April on interactive investor’s (ii) platform as investors fled volatile markets following Trump’s tariff announcements.
Royal London Short Term Money Market was the most sought after active fund throughout the month as investors looked to de-risk their portfolios, with Vanguard Sterling Short-Term Money Markets, L&G Cash Trust, and Fidelity Cash also among the top 10.
Investors’ bearishness was also visible in their rush to buy gold, with iShares Physical Gold ETC being the second most bought index funds in April and Greatland Gold becoming one of the most popular equities for the first time.
But while many investors sought safety, other looked to take advantage of the drop in US equities, with the Vanguard S&P 500 UCITS ETF remaining the most purchased index fund in April.
The main US index has recovered 13.4% since its low of $4982 in the wake of Trump’s tariff shock, but it still down 3.7% year-to-date. It’s popularity among ETF investors may be a sign that they expect further recovery ahead.
See also: US economy contracts 0.3% as companies race to beat tariffs
Kyle Caldwell, funds and investment education editor at interative investor, said: “Since US President Donald Trump pressed the pause button on the implementation of tariffs for 90 days for countries excluding China, both the S&P 500 and Nasdaq have risen from their lows.
“While no one knows if this market recovery will be sustained, many investors are sticking to their long-term plan.”
This was also evident in the most bought shares of April, with Nvidia, Tesla, and Amazon among the top 10. They are up 16.6%, 20.1% and 6.3% over the past month as markets have recovered from the initial tariff shock.
However, British companies BP, Legal and General, and Rolls Royce were the three most purchased stocks throughout the month. These, as well as other popular names such as dividend payers Barclays and Glencore, suggest that investors are “sizing up both growth and income opportunities,” according to Caldwell.
This story was written by our sister title, Portfolio Adviser
