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.

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

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.

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.

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 assessed. Consider taking independent financial advice.

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.

More on Investing Articles

Investing Articles

Here’s how investing £250 a month could bag me over £10K in passive income annually

This Fool breaks down how she would go about building a passive income stream worth over £10,000 annually to enjoy…

Read more »

Young black colleagues high-fiving each other at work
Investing Articles

I’d snap this FTSE 250 stock up in a heartbeat for juicy returns and growth!

Sumayya Mansoor explains why this FTSE 250 property stock is firmly on her radar as she looks to buy stocks…

Read more »

Man writing 'now' having crossed out 'later', 'tomorrow' and 'next week'
Investing Articles

1 dirt-cheap FTSE 100 stock investors should consider buying in June

The FTSE 100 is littered with bargains, according to our writer. She explains why investors should be taking a closer…

Read more »

Young female business analyst looking at a graph chart while working from home
Investing Articles

The Legal & General share price has gone nowhere. Why?

The Legal & General share price has performed much worse than the the FTSE 100 over the past five years.…

Read more »

Investing Articles

Where will the BT share price go in the next 12 months? Here’s what the experts say

The BT share price has been sliding for years. But after the latest set of results, it looks like the…

Read more »

Investing Articles

Are National Grid shares now a brilliant bargain?

National Grid shares look exceptionally cheap following last week's selloff. Is now the time to buy the FTSE 100 firm…

Read more »

Happy young female stock-picker in a cafe
Investing Articles

Up more than 15%! — this small-cap company is delivering phenomenal dividend growth

There’s more good news in this company’s interim report and it may be shaping up as a decent dividend growth…

Read more »

Electric cars charging at a charging station
Investing Articles

Big news for Tesla stock investors!

Tesla has just quietly dropped a key target it set for itself just a few years ago. What does this…

Read more »