As the tax years wraps, these were the top ISA stocks and shares last month!

As the tax year ends, George Sweeney explores the top stocks and shares bought by ISA holders on the Freetrade investing platform last month.

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.

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With the current tax year ending, many investors have had their stocks and shares ISAs on their minds. They’ve been searching a turbulent market for investments to stuff into the tax wrapper to make the most of their yearly allowance.

To show you what’s been getting ISA investors excited, I’m going to reveal the most-bought investments last month. 

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What were the 10 most popular ISA stocks and shares last month?

According to fresh data from Freetrade, these were the ten most-bought investments by ISA holders on the platform in March:

Position Investment
1 Tesla (TSLA)
2 Vanguard S&P 500 UCITS ETF Acc. (VUAG)
3 AMC Entertainment (AMC)
4 GameStop (GME)
5 Vanguard S&P 500 UVITS ETF Dist. (VUSA)
6 Apple (APPL)
7 Vanguard FTSE All-World UCITS ETF (USD) Acc. (VWRP)
8 Amazon (AMZN)
9 Hycroft Mining (HYMC)
10 Vanguard FTSE ALL World UCITS ETF Dist. (VWRL)

What do we know about these stocks and shares?

Here’s a breakdown of the potential investing motivations behind some of these picks.

1. Tesla (TSLA)

Tesla was making headlines amongst the investment community once again! This time, the price of the stock soared following the announcement of another potential stock split.

The idea behind this next split is to allow the company the opportunity to pay a dividend to investors at some stage.

Although splitting a stock doesn’t actually add any extra value, it excites investors on a psychological level. And sometimes, that’s enough to drive demand, along with the share price.

2. Vanguard S&P 500 UCITS ETF Acc. (VUAG)

It’s been a rough start to the year for the world’s most popular index – the S&P 500.

Plenty of investors continued to invest even as the price dropped. But, in March we’ve seen a slight recovery as the initial shock of Russia’s invasion of Ukraine has settled.

Some clarity around interest rate hikes from the Federal Reserve has also led to more confidence in the tech stocks that make up a big chunk of this index.

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3. AMC Entertainment (AMC)

The inclusion of AMC back amongst the most popular lists is curious. It can be seen as both a good and a bad sign:

  • Good because resurgent interest in more speculative and risky assets can be a signal that confidence in the market is back, which can lead to a positive spell for investments.
  • Bad because speculating and gambling with investments can create sketchy market conditions and sometimes lead to bubbles.

4. GameStop (GME)

Similar to AMC, the return of the meme stock is a strange market indicator. It feels like we’ve jumped straight from cautious to speculative, with not much ground covered in between.

The GameStop (GME) share price has almost doubled in the past month. So, part of this rebound in popularity might be the case of investors hoping to catch the next wave and make a quick profit.

But, to be perfectly honest, although money can be made, using your stocks and shares ISA with a long-term investing mindset can be the more useful course of action.

5. Vanguard S&P 500 UCITS ETF Dist. (VUSA)

This is a similar index fund to VUAG, except for one major difference: with this fund, any dividends are paid out to investors. This is interesting because in recent times ‘distribution’ funds have been more popular. Investors have been choosing to get their shareholder rewards immediately instead of reinvesting them.

The fact that more stocks and shares ISA investors are choosing the ‘accumulation’ option over the ‘distribution’ one is a further sign that long-term investing confidence is making a comeback.

Where can you start investing in a stocks and shares ISA?

Although this tax year is coming to a close, the good news is that you get a fresh £20,000 allowance to use on 6 April.

You’ll first need to set yourself up with a top-rated stocks and shares ISA account. Ideally, one with low fees and that gives you a diverse choice of investments to pick from.

Remember that investing always carries a degree of risk. So, make sure you have a long-term investing horizon and ensure you’re aware that the value of your investments could fall as well as rise.

Please note that tax treatment depends on the individual circumstances of each individual and may be subject to future change. The content of this article is provided for information purposes only. It is not intended to be, nor does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

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