Best-selling funds, Investment Trusts and ETFs of February 2026

It was a tough month for the technology sector, as investors decided that companies were either spending too much on AI (the hyperscalers) or were about to be disrupted by it (the software sector). Even another strong set of results from Nvidia could not soothe market nerves. Nevertheless, other global stock markets continued to sail higher.

Overall, the S&P 500 dropped 1% and the MSCI World rose 1%. However, this masks some significant disparities in performance. The CNBC Magnificent Seven index dropped 7.3%, while the FTSE 100 rose 6.7%. Investors started talking about a ‘HALO’ trade, an acronym for ‘heavy assets, low obsolescence’, a neat way to capture the ‘anti-AI’ sentiment in markets.

Elsewhere, European markets continued their strong run, with the MSCI Europe ex UK up 3.5% over the month. It was another strong month for emerging markets, which rose 5.5% in February, putting them 18% higher over three months[1], more than 3x the return from the MSCI World. The weaker Dollar, which characterised much of the month, was also a boost.

Bond yields also came down, as inflationary pressures appeared to be easing. The 10 year treasury note dipped below 4%, while the UK 10 year gilt fell as low as 4.2%. Corporate bond spreads over government bonds dropped to their lowest level since 1998, leaving investors with little margin for error should the environment turn more difficult.

This relative calm did not last. The Supreme Court ruling on 20 February stated that Trump could not use the 1977 International Emergency Economic Powers Act to implement tariffs. Most tariffs have been introduced under this Act and the decision raised the spectre of companies clawing back some of the estimated $130bn (£97bn) raised from tariffs. In March, the US Court of International Trade on Wednesday ordered Customs and Border Protection to issue refunds for tariffs raised under the IEEPA powers.

At the end of the month, the US launched strikes on Iran, which changed the directions of markets once again. The Dollar rose, oil prices jumped higher, while bond yields rose higher in anticipation of a jump in inflation and higher interest rates. Corporate bond spreads also widened. The nascent revival in smaller companies and emerging markets abruptly reversed and the US markets saw greater strength.

There were signs of a change in market leadership across the four platforms. On Fidelity, for example, the Lazard Emerging Markets fund made the top 10 best-sellers, as investors started to notice the outperformance of the sector. The Lazard fund is one of the top performers over three years, with a return of 85.6%.

There were also signs that investors were looking for a different type of global fund, away from technology-heavy index funds. The Artemis Global Income fund appeared on three of the four platforms. New additions to the best-seller list included Dodge & Cox Worldwide Global Stock Fund and Fidelity Global Dividend. That said, investors retained their preference for the Fidelity Index World fund, which features on three out of the four platforms.

The UK saw some tentative interest among investors. 2025 was a strong year for UK large caps, while small and mid caps had started to recover in 2026. The Fidelity Special Situations fund was the top seller on the Fidelity platform, after a strong run of performance, while the Vanguard FTSE UK Equity Income Index appeared on the ii platform.

Overall, there was still a ‘risk on’ tone to buying: on the AJ Bell platform, its multi-asset ‘adventurous’ strategy topped the charts, while on the Hargreaves Lansdown platform, it was the HL Growth fund in poll position. Nevertheless, there were still signs of some nerves among investors. The Fidelity Cash fund and Royal London Short Term Money Market Fund were both top-sellers on the Fidelity platforms.

Scottish Mortgage remained the top choice for Investment Trust investors, taking the 1st slot on three platforms and the 2nd slot on ii (after Greencoat Wind). Investors are apparently undeterred by a tougher run of performance for the Trust, which has been caught up in the AI sell-off. That said, it remains a strong performer over one and three years. Investors appeared to retain their enthusiasm for technology, despite its wobbles, and the Polar Capital Technology Trust was also popular, appearing on all platforms.

The clean energy infrastructure Trusts have seen their popularity revive. The Renewables Infrastructure Group appeared on the Fidelity and ii platforms, while Greencoat Wind appeared on three out of the four platforms. Neither fund has had an obvious turnaround in its fortunes, with both still showing weak performance. However, investors may be anticipating disruption in the energy markets that may benefit renewables groups.

The Seraphim Space Investment Trust appeared on the Hargreaves Lansdown and ii platforms again this month. The Trust’s share price has risen over 60% in the last three months alone, and it has proved resilient during the recent sell-off in technology-related names. It may be a natural growth option for disillusioned technology investors looking for alternative high growth options.

The revival in emerging markets was also evident in the top Investment Trust sellers. The Fidelity China Special Situations Trust was a top seller on the Fidelity platform, while JP Morgan Emerging Markets Growth & Income appeared on the AJ Bell platform. The Fidelity Emerging Markets Trust was a best seller on the AJ Bell, Hargreaves Lansdown and ii platforms. The UK was also getting some attention, with the Fidelity Special Values Trust appearing on the Fidelity and HL platforms.

Despite some wobbles in the gold price and fears that silver may be in a bubble, enthusiasm for precious metals among ETF investors was undimmed. The iShares Physical Silver and Physical Gold funds were top sellers across all four platforms, as investors looked to participate in their astonishing rise, or hedge their portfolios against geopolitical risks.

ETF investors also showed more enthusiasm for US markets, which was evident in fund or Investment Trust sales. The Vanguard S&P 500 ETF was a top-seller on all four platforms, while the US-heavy Vanguard FTSE All World ETF was also a popular option.

The notable exceptions to this pattern were the growing popularity of Europe. The SSGA SPDR ETF Europe appeared on the Fidelity platform. Europe has been the default choice for investors coming out of the US: data from fund flow data group EPFR showed European stocks heading for their highest ever monthly inflows in February, with two consecutive record weekly flows of about $10bn[2].

UK equities also found favour, with the Vanguard Funds Plc FTSE 100 UCITS ETF appearing on the HL platform, and the iShares Core FTSE 100 ETF a top seller on the Fidelity platform. The iShares Core MSCI EM IMI ETF was a top-seller on the AJ Bell and HL platforms. While ETF investors retain their preference for recent winners, such as the S&P 500 and precious metals, there are clear signs they are starting to diversify.

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