Best-selling funds, Investment Trusts and ETFs of December 2025

Global stock markets ended 2025 on broadly positive note, albeit with plenty of lingering worries over the durability of the artificial intelligence trade. It has been a year characterised by diversification away from the US, and the S&P 500 lagged many of its peers again in December. In contrast, Europe, the UK, and particularly emerging markets, saw strong gains over the month.

The S&P 500 ended the month at 6,846[1], up 0.1% month on month, finishing the year up 17.9% in dollar terms. This was a creditable performance, but returns were far weaker for UK and European investors because of the weakness of the dollar. Equally, these gains were accompanied by a growing drumbeat of concern over technology valuations, optimistic deal-making, and capital spending. It is notable that the share price of Nvidia, the poster child for AI, is at the same level it was in October.

Markets also seemed largely impervious to the strength of US GDP. As data emerged after the government shutdown, it showed the US economy growing strongly, at 4.3% for the third quarter[2]. However, inflation and interest rates remain the swing factors for US markets. The picture on inflation remains mixed, and there are still concerns that the impact of tariffs has not yet been realised in the data. These will be key areas to watch in the months ahead.

Emerging markets had a strong month, with the MSCI Emerging Markets index up 3% in December alone. They transcended weakness in the Chinese market[3], where uncertain economic data kept investors cautious. A revival in the Indian market has helped, but the real strength came from Taiwan and Korea, which were buoyed by gains in the semiconductor sector. Many of the smaller markets in Eastern Europe, Latin America, and the Middle East also performed well.

UK stock markets recovered in the wake of the budget. The FTSE 100 capped a strong year with a 2.4% gain over the month. It has delivered a total return of 25.8% for 2025 in sterling terms[4], putting it ahead of the majority of its global peers. However, the UK’s small and mid-cap sectors have remained weak over concerns about the domestic economy. Here, there was little to cheer. While inflation eased and there was a welcome cut in interest rates, growth contracted slightly, wage growth fell, and unemployment rose. The economy looks stagnant at best.

European markets were led by the financial sector. They have enjoyed a strong year, with the MSCI Europe ex UK index up 20.4% in 2025. The European economy continues to tick higher, even if growth is unexciting. The ECB kept rates on hold, while upgrading its growth forecasts for 2025 to 2028. Inflation remains benign, at or near the European Central Bank target.

Fixed-income markets had an uneventful month. The US 10-year treasury yield ended the month at 4.2%, having started the month at 4.1%. With the worries over the budget behind it, the UK gilt yield was unchanged, starting and ending the month at just under 4.5%. Having pushed a little higher at the end of November, by the end of December, corporate bond spreads had returned to at, or near, multi-decade lows.

The caution seen in November was less in evidence over December. Last month, over half the most popular funds on the Fidelity platform were cash-based, but that had dwindled to just three for December. The Royal London Short Term Money Market fund was a best-seller on the ii platform, but cash funds didn’t appear in the top 10 most popular options for the other two platforms.

The latest Investment Association fund statistics showed reviving popularity for active funds over passive funds. However, passive funds remained in vogue across all four platforms. At least half of all funds sold in AJ Bell and Fidelity were passive funds. For Hargreaves Lansdown and ii, that rose to nine out of 10. Platform investors have yet to be convinced that there is a reason to look beyond the larger companies that make up a significant share of global indices.

Nevertheless, there was greater diversity of regional exposure. The Artemis SmartGARP European Equity fund made an appearance on the ii and Fidelity platforms. European funds have been notably absent from the best-seller lists, in spite of strong performance in 2025. The Artemis fund is top of the Europe ex UK sector over three years, having beaten its nearest rival by 42.3%[5]

Although Global, US, and technology funds dominated the best-seller lists over the month, the UK continued to garner some interest. The Fidelity Special Situations fund and L&G UK index trust both appeared on the Fidelity platform, suggesting investors may be warming up to the UK after a strong year for the FTSE 100.

Investment Trust investors showed no signs of worrying about the AI trade: Scottish Mortgage was the top seller on every platform. While manager Tom Slater has trimmed some of the Trust’s AI holdings after strong price performance, the team still believes that AI will be transformational for the global economy and holds TSMC, Nvidia, ASML, and Meta among its top 10 positions. There was also plenty of enthusiasm for dedicated technology trusts. Polar Capital Technology appeared in the top 10 on all four platforms.

Elsewhere, investors were sticking with Greencoat UK Wind, a top seller on AJ Bell, Hargreaves Lansdown, and ii. The three-year performance figures are still grim, with a fall of 18.8%, but there have been tentative signs of a turnaround in the very short term.

Seraphim Space Investment Trust was a surprise winner on both the Hargreaves Lansdown and ii platforms. The Trust, which invests in satellite technology, is up 165.5% over three years. One of its holdings, ICEYE, received a significant boost in December, signing a €1.7bn contract with defence giant Rheinmetall to provide space-based reconnaissance data. This sent the share price soaring and attracted investor interest.

Elsewhere, it was the familiar favourites that took the top spots, such as City of London, F&C, and JPMorgan Global Growth & Income. A couple of the Asia Trusts – Fidelity Asian Values and Fidelity China Special Situations – also drew attention, as did BlackRock World Mining, as commodity prices rose.

ETF investors continued to embrace technology and US assets. The Vanguard S&P 500 fund appeared across all four platforms. The Vanguard FTSE All World fund also proved popular. Investors on the ii platform were doubling down on the technology trade, with the WisdomTree NASDAQ 100 3x Daily Leveraged GBP and Invesco NASDAQ 100 UCITS among the best-selling funds.

However, the real winners were silver ETFs, which were a feature on all platforms. The iShares Physical Silver fund was among the top five ETFs on every platform, as ETF investors rushed to capitalise on the soaring silver price. The silver price has more than doubled since September[6]. Gold also retained its popularity, with the iShares Physical Gold fund a popular choice.

The UK also appeared to be garnering some attention from ETF investors. The iShares Core FTSE 100 ETF was the top seller on the AJ Bell platform, while the iShares UK Dividend fund was also popular. It is too soon to call a turnaround in attitudes to the UK market, but it is an encouraging sign.

There were a few signs of caution among ETF investors, though the iShares £ Ultrashort Bond fund appeared on the Fidelity platform for the second month in a row. Short-dated bonds tend to be seen as lower risk because there is less risk of default, and they can be used as a proxy for cash.