Early bird ISA investors snap up banks, tech and solar

Hargreaves Lansdown reveals where ISA investors have been putting money in the first week of the new 2022/23 tax year.

• Investors cover their bases as renewable energy trusts fly off the shelves alongside commodity plays
• Stock best buys include beaten up banks and tech giant Tesla
• Most popular funds have a decidedly growth-bias as Baillie Gifford tops the charts

Sophie Lund-Yates, Lead Equity Researcher:

“Investors have wasted no time in putting their stocks and shares ISAs to work in the early days of the brand new tax year. Among the most popular stocks is UK banking giant, Barclays. The group’s share price has been rocked in recent months following the discovery it mishandled the selling of US Securities in 2019. While this kind of oversight is costly and embarrassing, there’s an argument to say Barclays’ diversified income model remains attractive. Fellow bank, Lloyds, makes the list too, as investors look to capitalise on a rising interest rate environment. Lloyds relies on traditional banking far more than others, meaning as rates rise, so too does a big portion of its income stream.

Away from finance, investors have been snapping Tesla. A renewed enthusiasm for EVs may well be coming from skyrocketing fuel prices, while recent news of Tesla’s impressive production figures won’t have harmed sentiment either. ESG momentum is gathering pace too and that’s showing through. The specialist NextEnergy Solar Fund has proven popular, and highlights the fact today’s investors are prepared to take action with their wallets when it comes to backing green energy sources.”

Emma Wall, Head of Investment Analysis and Research:

“Talk about hedging your bets – early bird ISA investors are covering all bases with the best buys of the new tax year. Beaten up funds from Baillie Gifford investing in tech, e-commerce and electric vehicles sit happily alongside value tilted Artemis Global Income. It’s a similarly diverse story amongst the most sold investment trusts; old economy commodity trusts sit next to renewable energy offerings from Greencoat and NextEnergy. As well as style-led and specialist funds and trusts, investors have shown appetite for one-stop-shop multi-asset solutions, unsurprisingly keen to outsource portfolio construction in uncertain times. Evidenced by Troy Trojan and Personal Assets – similar open and closed end funds which focus on capital preservation run the same investment house – both featuring in the best buys.”

HL data :