Hargreaves Lansdown investors favour US, global equity funds

Hargreaves Lansdown investors are favouring US and global equity funds which dominated most bought funds in December 2024.

In a statement today (6 January) Hargreaves Lansdown also highlighted how the trend towards passive investing was continuing.

Joseph Hill, senior investment analyst, Hargreaves Lansdown said: “HL investors adopted a risk-on approach into the year end with US and global funds occupying each of the top ten most bought funds in December.

"The tail end of 2024 saw Donald Trump win the race for the White House, becoming the 47th President of the United States and only the second person ever to sit two non-consecutive terms. The US market performed well following this with investors optimistic on the prospects for the stock market of a pro-business Trump administration.

"Trump has proposed cuts to corporate taxes, which is positive for companies’ earnings – and therefore could be beneficial to stock prices. There’s also the mooted blanket 20% tariff on all imports into the US, which could benefit domestic businesses over international conglomerates."

Hill further said: "Though the global funds included offer some geographical diversification, investors should be mindful that most of these funds have a strong US bias with most of their assets invested across the pond.

"The trend towards passive investing continued with just three of the top ten most bought funds, Baillie Gifford American, Artemis US Smaller Companies and Rathbone Global Opportunities, investing actively.

Artemis US Smaller Companies, managed by Cormac Weldon and Olivia Micklem, features as one of HL’s five funds to watch for 2025.

The fund aims to deliver long-term growth by investing in 40-60 smaller companies based in the US and uses a clear, disciplined investment approach, which has served the fund well since launch.”

HL data showing most bought funds (excluding HL funds), December (net buys):