Top of the stocks: Most bought and sold shares in June

The so-called Taco trade, predicated on the suggestion that markets believe that Trump always chickens out, continued with a vengeance in June, with the S&P 500 Index of large US companies roaring ahead by c. 5% (c. 3.4% in pound sterling) in the month –  by David Brenchley

The FTSE 100 fared much worse, ending the month with almost exactly a 0% total return, despite the mid-cap FTSE 250 rising c. 3.2%. This can largely be put down to the weakening in the US dollar. Large-cap UK stocks tend to have much more exposure to the dollar, meaning their revenues are lower after they are converted back into pound sterling.

Other notable market moves included Japan’s Nikkei 225 clocking up a c. 6.8% gain, as corporate governance reforms continue to boost the country’s stock market.

We saw some interesting moves in what investors were buying during the month. Below, we round up the stocks that were popular – and not so popular – with investors in June.

Top 10 most bought and sold shares in June

The first thing to note here is that the previously all-conquering chipmaker Nvidia (NVDA) slipped out of the top 10 during July, despite continued impressive gains of c. 22% during the month. It’s possible that investors are once more worried about the stock’s valuations as it is back to setting record highs and profits are being taken.

The two most-popular shares this month were the two biggest UK-listed defence names, Rolls-Royce (RR) and BAE Systems (BA). European defence stocks were further boosted by the commitment made by policymakers at the recent NATO summit to get defence spending up to 5% of GDP.

Notably, the WisdomTree Europe Defence UCITS ETF (WDEF), which tracks the return of the sector, has gathered $3 billion in assets under management since its launch in March, showing appetite is high. The ETF has returned 16.6% in that time.

Rolls-Royce and BAE Systems are up c. 108% and 47% respectively over the past 12 months, although they’ve been well and truly eclipsed by German peer Rheinmetall, which has soared c. 237.5%.

Digging for victory

Another key theme this month was the rise of mining firms. That said, despite the rising gold price, which is up c. 40% in dollar terms over the past year, London’s listed miners are yet to benefit.

While Australia’s Newmont and Canada’s Agnico Eagle are up c. 75% and 38% respectively in the past 12 months, Rio Tinto (RIO) and Glencore (GLEN), two on our list, are down c. 19% and 35% respectively.

Company-specific issues have contributed to this, plus they mine things other than gold, with Rio’s main focus being iron ore.

Metals One (MET1), meanwhile, is on the verge of adding gold exploration to its repertoire. It is in the process of acquiring a gold mining claim within the Carlin Gold Trend in Nevada, the largest gold mining operation in the US.

Top five most bought investment trusts in June

The most interesting addition to this week’s investment trust list is Tiger Royalties (TIR), which has featured on Kepler Trust Intelligence just once before. TIR combines a portfolio of small-cap mining companies such as African Pioneer and Galileo Resources, with a recent move into cryptocurrencies and artificial intelligence.

TIR recently acquired Bixby Technology, which itself aims to invest in technology enterprises, for £325,000. Bixby’s first purchase was AROK, which allows people to invest in so-called utility meme coins, which TIR says are a type of crypto asset built to represent the live fiscal value of a social movement. It then invested in TAO Strategies Singapore, which operates on the Bittensor blockchain network.

Shares have been on a rollercoaster ride in the past month, rising initially c. 450%, but halling by c. 50% since.

We’ll very quickly run through the top four, as they’re long-time favourites. Scottish Mortgage (SMT) continues to be in vogue, as it benefits from US growth stocks’ recovery post-Liberation Day.

Dividend heroCity of London (CTY); and core, global equity income option JPMorgan Global Growth & Income (JGGI)rode high on the equity side, too.

Elsewhere, a renaissance in the renewables sector has kept wind farm ownerGreencoat UK Wind (UKW)in demand. Shares have risen c. 20% since April – almost as much as some US tech stocks – to trade at a five-month high.

Uncertainty remains

We’re just days away from the end of President Trump’s tariff pause and, with very few movement on trade deals in the past three months, markets are very much pinning their hopes on another Taco episode and a further three-month extension.

Meanwhile, Trump’s repeated threats to replace Federal Reserve Jerome Powell and the continuing spat between the President and Tesla owner Elon Musk shows that risks are heightened.

In addition, the weakening of the US dollar is weighing on returns UK and European-based investors get from investing in the S&P 500. It’s possible we’ll see a further broadening out of portfolios in the coming months.

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