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

It was another volatileDescribes the price movement of an investment or index. High volatility indicates frequent and significant price movement, whereas low volatility denotes less frequent or severe fluctuations in price. month for global stock markets, as conflict in Iran resumed and investors started to cool on parts of the artificial intelligence trade. It was a better month for left-behind value markets, including the UK, which was top of the developed markets over the month. There were also worrying developments in the bond market as US long-dated bonds flirted with multi-decade highs.

The resumption of the war in Iran saw oil prices briefly tip over $100 a barrel. President Trump appeared torn on whether to escalate, and risk prompting a financial crisis just ahead of the mid-term elections, and de-escalation, but on difficult terms. Markets have, to some extent, absorbed the crisis and started to desensitise to it, but oil traders are warning that the cushion that had been keeping oil price rises in check has disappeared.

This kept equityValue of an asset after subtracting liabilities. markets contained for much of the month. More serious for investors was the unwinding of the AI trade, and the semiconductor sell-off in particular. The PHLX Semiconductor indexA stock market index that tracks 30 of the largest US-listed companies, focused on design, manufacturing and semiconductors. fell almost 30% between late June and the end of July as investors started to worry about valuations, and about the potential cyclicality of demand for semiconductors and memory.

These falls came in spite of some strong results from semiconductor and memory companies, which suggested demand from the build-out of AI infrastructure remained strong. Asian semiconductor giant TSMC reported a 77% rise in second quarter profits [1], while memory group SK Hynix saw a six-fold jump in profits over the same period [2]. The problem was expectations: valuations had grown too high, and there was significant leverage in the system. The unwinding was messy.

While the sell-off grabbed headlines, the rest of the market performed reasonably well. Overall, the MSCI World index A global index that tracks large and medium-sized companies from 23 developed countries around the world.was up 0.5% over the month, while the S&P 500An index that tracks the performance of the 500 largest publicly traded companies in the United States. It's often used as a benchmark for the overall global stock market. was flat. The CNBC Mag 7 indexA stock market index, like the FTSE 100 or S&P 500, that shows how the share prices of seven of the biggest technology companies in the US are performing. was also flat, albeit with a significant sell-off and recovery in between. The winner over the month was the FTSE 100Also called “Footsie”, the name for the share index made up of the largest 100 companies by market capitalisation (total value of all shares) listed on the London Stock Exchange.. It rose 3.7% over the month, making it one of the top performers.

In sector terms, energy had a strong month as oil and gas prices rose again. Technology also performed well, with a stronger performance from other parts of the sector, even as semiconductor stocks weakened. Financials were buoyed by strong earnings from the major US and European banks, with trading and investment banking activity strong. The only weak spot was utilities.

It was a tougher picture for bond A type of asset that represents a loan, usually issued by a government, company or agency that wants to raise money to fund its operations.markets. US 30-year bonds hit a 19-year high as investors started to fret that the Federal Reserve The central bank of the United States, responsible for setting American interest rates and managing the money supply. Its decisions ripple far beyond US borders — when the Fed raises or cuts rates, it affects the dollar, global borrowing costs, and asset prices from bonds to gold worldwide. Often shortened to "the Fed."wouldn’t act in time to tame inflation. The Federal Reserve kept rates on hold in its meeting, but ambiguous messaging from new Chair Kevin Warsh unsettled markets. The latest inflation Term used to describe how quickly the prices of goods and services is rising over a period of time. In periods of high inflation, prices are increasing rapidly, whereas low inflation means prices are increasing by only a small amount.data showed an annual increase of 3.5% in June, but this reflected a month of lower oil prices and pressures may resume in July.

The UK could not be immune from global bond market turmoil, despite the best efforts of incoming Chancellor John Healey to reassure the market that he would be fiscally prudent. The two-year gilt yield rise from 4.20% at the start of the month to 4.27% at the end in spite of the Bank of England keeping rates on hold. Longer dated giltsA gilt is a fixed income bond issued by the UK government. They are so named because, historically, the paper certificates used to issue these bonds had a gilt (gilded) edge. The government issues gilts in order to fund public spending. also rose, but not to the same extent as US treasuries.

In sync with the wider market, platform investors held back on technology investment this month. After a strong month for funds such as Polar Capital Global Technology last month, technology funds were notably lower on the top-seller lists for July. The Fidelity Funds - Global Technology Fund was 10th on the Fidelity platform, while the L&G Global Technology Index Trust and WS Blue Whale Growth fund were 9th and 10th on the ii list.

There was still plenty of caution in evidence. On the Fidelity and ii platforms, cash funds were the top net sellers. Distribution yields of 3.5-4% continue to look attractive as investors look at the volatility in stock markets and the unpredictability of the AI trade.

Elsewhere, investors were sticking to ‘plain vanilla’ global equity index funds. The three funds that appeared on all four platforms were the Vanguard FTSE Global All Cap Index, the Fidelity Index World and HSBC FTSE All World Index funds. Investors were losing their appetite for US-focused funds, possibly in response to higher valuations and volatility. Only three US-focused funds – the UBS S&P 500 Index, Fidelity Index US Fund and Legal & General US Index – appeared across the best seller lists for all platforms.

As with last month, where investors looked beyond global index funds, it tended to be income-focused active fundsWhen a fund is managed by a fund manager who aims to bead the standard market index.. Artemis Global Income remained a popular choice, as with previous months, alongside Fidelity Global Dividend. UK-focused Fidelity Special Situations was also a popular choice on the Fidelity platform after the UK markets had another strong month.

Scottish Mortgage remained the most popular choice for Investment Trust investors over the month, in spite of a wobble around the AI trade, and a tougher month for its largest holding – SpaceX. The space exploration company has seen some post-IPOWhen shares in a private company are listed on a stock exchange and made available for investors to purchase for the first time. blues, with the share price now $115, some way below its IPO price of $135.

There was still interest in the space business, with the Seraphim Investment trust appearing on the HL and ii platforms. Investment Trust investors also continued their support for technology, with Polar Capital Technology a top seller on all four platforms and Allianz Technology trust appearing on the Fidelity and HL platforms.

There was an increasing interest in Asia-focused investment trusts. Asia markets have been strong, if volatile, performers for the year to date, though July was a difficult month as the flagship Korean and Taiwanese semiconductor companies sold off. Henderson Far East Income was a top seller on all four platforms, while Schroder Oriental Income fund featured on the Fidelity list and China Special Situations on the AJ Bell list.

Japan has been a top-performing region this year, with improving economic performance, a new government and better governance coming together to boost stock markets. Investors have started to notice, and the Schroder Japan Trust was a top seller on the Fidelity platform. The trust is up 42% in the last year alone. [3]

It has also been a better period for the renewables sector. A second crisis in fossil fuels within four years has revived interest in the renewables sector and Greencoat Wind, which appeared on the HL and ii platforms, has risen almost 25% since February [4]. The Renewables Infrastructure Group was also popular.

ETF investors were not deterred by the weakness of the semiconductor sector over the month, with semiconductor ETFs still commanding plenty of attention. The VanEck Semiconductor UCITS ETF appeared on all four platforms despite significant falls over the month. The ETF has risen 129.5% over the past year [5] and investors may be hoping its recent weakness is a blip, rather than a permanent sell-off.

There was not quite the same enthusiasm for broader technology ETFs as last month. The Invesco EQQQ NASDAQ-100 ETF had appeared on all four platforms in June, with the iShares S&P 500 Information Technology Sector UCITS ETF also popular. However, only two platforms – ii and HL – had a Nasdaq-focused ETF on their best seller list this month.

It has been a better month for the gold price, which reversed its recent weakness. Gold was still a popular choice for ETF investors, with the iShares Physical Gold ETF a top seller on all four platforms. Nevertheless, investors appear to have lost their enthusiasm for silver. Only one silver-focused ETF appeared across the four platforms – iShares Physical Silver on the ii platform.

S&P 500-focused ETFs remained popular across all platforms as a cheap and easy option to tap into the US market. The Vanguard S&P 500 UCITS ETF, both Dollar and Sterling versions, appeared on all four platforms. Elsewhere, investors retreated to the relative safety of global funds, with the Vanguard FTSE All-World ETF the most popular option on all except the Fidelity platform.