UK investors looking to buy Tesla and Apple shares? I’d choose UK-listed investment trusts

I think investment trusts are a great option for Britons who want to buy into the tech sector via Apple shares and Tesla’s too, writes Thomas Carr.

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

US technology stocks are easily the best-performing stocks of the year so far, largely due to the likes of Tesla and Apple shares. Their standout performances mean that UK investors are now rushing to buy the stocks.

Tesla and Apple shares soaring

Since the beginning of the year, the Tesla share price has more than tripled. In fact, during the summer, the price doubled in the space of two months. The Apple share price may not have risen as sharply as Tesla’s, but it’s still up 60% since the end of last year, and its performance is equally as impressive. Apple has now become the first US company to be valued at $2trn.

Inflation Is Coming

Inflation is out of control, and people are running scared. But right now there’s one thing we believe Investors should avoid doing at all costs… and that’s doing nothing. That’s why we’ve put together a special report that uncovers 3 of our top UK and US share ideas to try and best hedge against inflation… and better still, we’re giving it away completely FREE today!

Click here to claim your copy now!

This kind of performance from the major US companies is enough to give UK investors a bit of a headache. Missing out on US tech giants has long been a drag on UK investors returns. But that needn’t be the case. The UK stock market is home to several large investment trusts that own shares in the Teslas and Apples of this world. For UK investors who would like to buy Apple and and Tesla shares, I think this is the perfect way to go.

UK-listed investment trusts

The largest of these is Scottish Mortgage Investment Trust (LSE: SMT). Listed on the FTSE 100, this trust invests in the biggest companies from all over the world. The majority of the trust’s portfolio comprises listed companies. But 20% of its portfolio is made up of non-quoted companies, which are often tech start-ups.  

SMT isn’t limited to the technology sector, but its focus on size and growth means that most of its holdings are well-known tech companies. At the end of July, Tesla shares made up 13% of its entire portfolio. Amazon shares made up almost 10%. The trust also has sizable stakes in Alibaba, Netflix, Alphabet and Zoom. This high conviction strategy seems to be paying off, the trust’s share price has risen by a whopping 55% since the end of last year.

For those looking for exposure to the Apple share price, the Allianz Technology Trust looks a good option. Apple is the trust’s largest holding, making up almost 7% of its portfolio. After Apple, its top four holdings are rounded out by Amazon, Facebook and Tesla.

The trust is a play on global tech stocks and this is reflected in both its recent and historical performance. In the first half of the year, its net asset value rose by 36%, with the trust’s share price rising by an almost identical amount. In the last 10 years, its share price has risen by an eye-watering 735%.

My final pick is the JP Morgan American Investment Trust. Unlike the other two, this one invests solely in US companies. Together, Microsoft, Amazon, Apple, Alphabet and Tesla shares make up nearly a quarter of its portfolio. The trust isn’t restricted to the technology sector. This means it’s more diversified, but also means that it’s exposed to areas that have been hit hard by Covid-19. The trust’s airline holdings have been a drag on this year’s performance, but net assets grew by 21% last year.

It just goes to show, it’s never been easier for UK investors to buy Apple and Tesla shares, and lots of others too.

Is this little-known company the next ‘Monster’ IPO?

Right now, this ‘screaming BUY’ stock is trading at a steep discount from its IPO price, but it looks like the sky is the limit in the years ahead.

Because this North American company is the clear leader in its field which is estimated to be worth US$261 BILLION by 2025.

The Motley Fool UK analyst team has just published a comprehensive report that shows you exactly why we believe it has so much upside potential.

But I warn you, you’ll need to act quickly, given how fast this ‘Monster IPO’ is already moving.

Click here to see how you can get a copy of this report for yourself today

Thomas has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

Should you invest the value of your investment may rise or fall and your Capital is at Risk. Before investing your individual circumstances should be considered, so you should consider taking independent financial advice.

More on Investing Articles

Two hands holding champagne glasses toasting each other with Paris in the background
Investing Articles

Can the stock market make me rich even now?

Here are three ways I'm coping with the stock market's recent bout of weakness and aiming to build wealth in…

Read more »

Cogs turning against each other
Investing Articles

3 top investment trusts to buy right now

Investment trusts offer a wide range of options for investors. And in troubled times, they provide some safety through diversification…

Read more »

pensive bearded business man sitting on chair looking out of the window
Investing Articles

Why hasn’t the FTSE 100 crashed in 2022?

The catastrophic events of 2022 have left investors around the globe fearing the worst for stock markets. And some have…

Read more »

Trader on video call from his home office
Investing Articles

2 inflation-resistant FTSE 100 stocks to buy today

Soaring inflation could dent my returns if I don't take care. Here are two top inflation-resistant FTSE 100 stocks I'd…

Read more »

Tabletop model of a bear sat on desk in front of monitors showing stock charts
Investing Articles

Why a bear market is an investor’s best friend

A bear market can certainly be scary. But any investor tempted to sell might benefit by looking at Warren Buffett's…

Read more »

Portrait of elderly man wearing white denim shirt and glasses looking up with hand on chin. Thoughtful senior entrepreneur, studio shot against grey background.
Investing Articles

The Rolls-Royce share price could be stuck below £1 for a while. Should I buy?

The Rolls-Royce share price has been trading at penny stock levels since April. Could the stock be a bargain at…

Read more »

Young brown woman delighted with what she sees on her screen
Investing Articles

I’m aiming to make £45,000 in passive income with UK shares and never work again!

Investing regularly in UK shares can generate a substantial passive income over the long run. Zaven Boyrazian demonstrates how.

Read more »

Portrait of construction engineers working on building site together
Investing Articles

Down 30%, are CRH shares a screaming buy?

The CRH share price has slumped this year. Roland Head asks if this overlooked FTSE 100 share could be a…

Read more »