With more global upheaval, the markets have been acting quite cautiously with investors on guard to jump on any big moves. But, ISA investors who are investing for the long term are steadily getting their fill of stocks and shares before the end of the tax year.
I’m going to reveal the most popular ISA investments from the Freetrade platform last month, explain some investing insights, and divulge how you can get started with an investment account. Keep reading for the latest need-to-knows about stocks and shares.
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What were the most-bought stocks and shares for ISA investors in February?
According to the latest data, these were the ten most popular investments for Freetrade Stocks and Shares ISA holders last month:
| Position | Investment |
| 1 | Tesla (TSLA) |
| 2 | Vanguard S&P 500 UCITS ETF Dist. (VUSA) |
| 3 | Meta (FB) |
| 4 | Vanguard S&P 500 UCITS ETF Acc. (VUAG) |
| 5 | AMC Entertainment (AMC) |
| 6 | Alphabet (GOOGL) |
| 7 | iShares Core FTSE 100 UCITS ETF GBP Dist. (ISF) |
| 8 | Vanguard FTSE All-World UCITS ETF Dist. (VWRL) |
| 9 | Vanguard FTSE All-World UCITS ETF (USD) Acc. (VWRP) |
| 10 | Apple (AAPL) |
What do we know about these popular ISA stocks and shares?
Here’s a quick rundown of the top investment picks.
1. Tesla (TSLA)
Although this electric vehicle stock has suffered alongside other shares trading at high growth multiples, plenty of investors still keep the faith.
Tesla has been smashing financial and production targets, so plenty of investors believe this firm will be back on top once wider economic issues settle down.
2. Vanguard S&P 500 UCITS ETF Dist. (VUSA)
The S&P 500 is down by close to 10% so far this year, but long-term investors are spotting an opportunity to invest in the index at a better value.
Investing in this index fund is a great way to get diverse exposure to some of the top US companies with a single investment that’s (usually) cheap to hold on to.
3. Meta (FB)
Investors didn’t respond too well to Mark Zuckerberg’s big swing from social media to the metaverse. This could be because the majority of people don’t yet fully understand what the metaverse is!
The performance of Meta has also been hit by Apple’s crackdown on data privacy, a move that may be followed by other big tech giants such as Google. Nevertheless, FB has proven to be a money-making machine over the years, so plenty of investors are still confident in the power of the Zuck.
4. Vanguard S&P 500 UCITS ETF Acc. (VUAG)
This ETF also tracks the S&P 500, with the only difference being that dividends are accumulated rather than distributed. So, any income gets rolled back into your fund to make the most of compound interest.
5. AMC Entertainment (AMC)
Meme issues aside, AMC has performed well in recent months. The rolling back of coronavirus restrictions is allowing for an eager return to big screen flicks, with more popcorn popping and slushy slurping – and the money is beginning to flow.
The meme craze allowed the company to get all of its debt under control, placing it in a much stronger financial position. Whether the stock can perform well enough to keep ISA investors interested in buying shares over the long term remains to be seen.
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Why are investors choosing these stocks and shares for their ISA?
It’s quite interesting to see that many of the stocks and shares investors are choosing for their ISAs are pretty similar to the most popular picks throughout 2021.
This suggests that a good number of ISA investors are happy to stick with a strategy comprising some broad index funds, a selection of top tech shares and a sprinkling of meme stocks for good measure.
So, many will be hoping that over a decent time horizon, wider issues will settle, inflation levels will become manageable, supply chain issues will wane, interest rates will calm and global conflict will cool down.
How do you invest in a stocks and shares ISA?
If you don’t already have an account, now is a great time to get set up with a stocks and shares ISA. The end of the tax year is fast-approaching, so opening an ISA now means you can still take advantage of this year’s allowance.
We’ve compiled our top-rated stocks and shares ISA platforms to help you get started. Different accounts will suit different types of investors, so we’ve organised ISAs into categories to help you find the right account for you.
Keep in mind that there are no guarantees with investing and your capital is at risk. So always do plenty of research and don’t overstretch the amount you plan to invest.
