There’s movement among the top order, a leapfrogging fund, and a new entry in our most-bought funds list.
The popularity of Vanguard’s low-cost trackers among private investors shows no signs of waning in our most-bought funds list.
Five of the US investment management giant’s funds are in our top 10 league table for November, while Vanguard LifeStrategy 80% Equity has hurdled Lindsell Train Global Equity to take the number two spot. The rankings are compiled using customer data of our parent company interactive investor.
Vanguard LifeStrategy 60% Equity, Vanguard LifeStategy 100% Equity, and Vanguard US Equity Index held firm in fourth, sixth and eighth place, respectively, while Vanguard FTSE Developed World ex UK Index slumped three places to 10th. The ongoing US/China trade dispute is still a headwind for emerging markets. Indeed, at the time of writing (3 December), US president Donald Trump suggested that a trade deal with Beijing could be a year away, and may be left until after the US presidential election in November 2020.
Elsewhere, Lindsell Train UK Equity has slipped another place since last month to seventh position. In September the fund, managed by respected investor Nick Train, experienced its largest ever investor withdrawals totalling £374 million. Behind the investor withdrawals, says Ben Yearsley, director of Shore Financial Planning, is “the sudden re-emergence of UK domestic stocks”.
Train’s fund is heavily tilted towards growth stocks, often with the majority of earnings generated abroad. But, says Yearsley: “Domestically focused and value funds have had a much better run over the last six weeks or so as has the pound, in that type of environment you will see money switch from one style to another.”
Rising up the ranking is Fidelity Global Technology, leaping four places to fifth position in a month. As Money Observer has suggested before, this global fund offers investors exposure to a broad variety of regions, which is arguably an attractive prospect given the backdrop of political uncertainty in the UK, and global trade tensions.
At the bottom of our table, Axa Framlington Global Technology, which has more than 85% of its holdings in the US, re-entered the top 10 as L&G International Index Trust bows out.
|Rank||Fund||IA Sector||Change since October||1-year return (to December 3)||3-year return|
|1||Fundsmith Equity||Global||no change||16.4%||67.5%|
|2||Vanguard LifeStrategy 80% Equity||Mixed Investment 40%-85% Shares||+1||10.6%||29.1%|
|3||Lindsell Train Global Equity||Global||-1||14.3%||75.4%|
|4||Vanguard LifeStrategy 60% Equity||Mixed Investment 40%-85% Shares||no change||10.2%||24.2%|
|5||Fidelity Global Technology||Tech and Telecomms||+4||26.3%||84.6%|
|6||Vanguard LifeStrategy 100% Equity||Global||no change||11.1%||34.2%|
|7||Lindsell Train UK Equity||UK all companies||-2||16.4%||51.6%|
|8||Vanguard US Equity Index||North America||no change||12.5%||43.5%|
|9||AXA Framlington Global Technology||Tech and Telecomms||new entry||24.1%||92.9%|
|10||Vanguard FTSE Developed World ex UK Index||Global||-3||12.3%||39.6%|