
On The Money
ISA ideas: most-popular funds, trends and overlooked areas
Mar 6, 2025
Sam Benstead, fixed income lead at Interactive Investor, joins Kyle Caldwell to unpack the secrets behind popular investment funds. They dive into trends like increasing diversification in the US stock market and share insights on undervalued areas that are currently cheap. The duo explains the allure of passive investments, evaluates the performance of major tech stocks, and highlights overlooked gems in UK and European markets, delivering fresh perspectives on investment strategies and opportunities.
24:51
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Quick takeaways
- The popularity of passive funds, driven by their strong performance and competitive pricing, highlights investors' preference for reliable market exposure.
- A growing interest in overlooked markets like the UK, Europe, and Japan signals a diversification trend among investors seeking undervalued opportunities.
Deep dives
Popularity of Passive Funds
Passive funds, including index funds and ETFs, have seen significant popularity among investors due to their strong performance over the past few years. For instance, the iShares Core MSCI World UCS ETF has returned an impressive 484% since its launch in 2009, significantly outperforming the average global fund. Similarly, BlackRock's S&P 500 ETF showed an 823% increase in the same timeframe, surpassing the performance of many actively managed funds. The competitive pricing of passive funds, alongside their consistent returns, has made them a preferred choice for many investors looking for effective market exposure.
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