With a stock exchanging emphasis on ETFs, the list consists of these that grant investors Canadian and US prices in addition to US tech and ‘one-stop payments.’ That’s a stark contrast to 2020, when the biggest deals involved banks, travel companies and buy-now-pay-later firms.
Four of the five most traded securities during that time period were ETFs, including Vanguard's International Shares ETF (ASX: VGS) and the BetaShares Nasdaq 100 ETF (ASX: NDQ). Sharesight users also flocked to Vanguard's multi-asset diversified high growth ETF (ASX: VDHG), which serves investors an 'all-in-one' global mix of stocks and bonds.Investors are following the year-long rise in foreign stocks, helped by the stunning performance of US technology companies.
“The big story of 2021 was the tech boom,” says Prashant Mohan, the chief marketing officer at Sharesight.
“People did their research and instead of picking winners in the tech boom they’ve gone with the broader index. Most of these ETF products are fairly easy to invest in, in the sector.”
The BetaShares Nasdaq 100 tracking fund delivered a 37 per cent total return last year, driven by the blockbuster returns at companies like Apple and Google.
For local investors Vanguards Australian Shares Index ETF (ASX: VAS) was the most popular trade. The $9.7 billion juggernaut remained at the top of the heap as investors elected to take a diversified view of the domestic market.
Only one of the top five was a troubled buy-now-pay-later player in Zip (ASX: Z1P). With increased competition and regulatory scrutiny putting pressure on performance, the BNPL provider held steady at second place compared to its 2020 position. Shares dropped 18.1 percent in 2021, unwinding part of the 50 percent gain logged the previous year.
Fortescue Metals Group (ASX: FMG), BHP (ASX: BHP) and the BetaShares Asia Technology Tigers ETF (ASX: ASIA) rocketed into the top ten as developments in the Chinese economy hung visit over Australia. Last year’s runup in iron-ore prices benefited miners while ASIA gave investors a stake in upheaval in the Chinese technology sector.
The major banks and travel companies that were prevalent in 2020 were absent in action. Profits and dividends, both at record levels, did not bring investors back to ANZ and NAB shares. Old favourites from the reopening period, Qantas (ASX: QAN) and Webjet (ASX: WEB), made the top ten in 2020 but were nowhere to be seen last year.
Another lingering pandemic trade in Afterpay (ASX: APT) similarly fell a long way down the list. Despite brokering a $39 billion deal with US payments giant Block (SQ) the BNPL giant dropped from third most traded stock in 2020 to 10th last year.
On a year in which world stock markets made double digit returns, some of the biggest trades struggled with blistering performance.
Appen (ASX: APX), Kogan. com (ASX: KGN) and The A2 Milk Company (ASX: A2M) lost more than 50% in 2021. A2 Milk was down 52% last year; Narrow-Moat A2 Milk equity analyst stays positive The short-term inventory problems that affected the business in 2021 are largely behind it and he believes Chinese consumers will keep purchasing the company’s infant formula going forward.“We believe the share price rout is overdone. From our perspective, the market is overly discounting near-term headwinds, with a2 Milk shares continuing to screen as good value,” Hewitt says.
Investors trade Woolworths for ETFs
Despite some ETFs coming in at the top 10 for the first time, blue chip stalwarts continue to form the most popular holdings of Sharesight investors.
Telstra (ASX: TLS), National Australia Bank (ASX: NAB) and Commonwealth Bank (ASX: CBA) took out second, third and fifth respectively. All three have been in the top five as far back as 2019. Three other companies in the top ten were Westpac, BHP Group and ANZ. ETFs are nipping at their heels. The number of ETFs in the top ten quadrupled from one last year, with Vanguard’s Australian Shares Index ETF the top holding in Sharesight portfolios in 2021.These funds have pushed aside several household names to enter the top ten. CSL (ASX: CSL), Woodside Petroleum (ASX: WPL) and Woolworths Group (ASX: WOW) rounded out the top ten in 2020. All have since lost ground, with Woolworths the biggest loser dropping from 8th place in 2020 to 19th last year.
All three trailed the index last year, returning from 11.5% to -1.1%.
