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As the sun sets on 2024, we take a look back at what our customers invested in.
US stocks continued to dominate your portfolios in 2024, with a few familiar names sitting at the top.
NVIDIA had a particularly notable year, not just for its dominance in the AI and chips space, but also for its highly publicised 10:1 stock split. It took top spot on our most-bought list, pushing Tesla down to second place for the first time since 2020.
Despite shifting trends, the US market remained a solid focus for many of you. Like Tesla, Vanguard’s S&P 500 (Acc) ETF remained a portfolio stalwart for the fourth year running. These two have consistently featured among the top buys, reflecting steady investor interest in electric vehicles and broad market exposure.
While the usual tech giants stayed strong, stocks like MARA and Coinbase made a splash too, reflecting investor interest in crypto-related assets.
Remember, past performance is not a reliable indicator of future returns.
Top buys in 2024
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Based on total value of buy orders as of 1 January 2025.
ETFs proved to be a portfolio staple again this year, offering broad exposure to global markets and industries. Many of you turned to ETFs that track the S&P 500 and FTSE All-World to balance your portfolios.
In fact, ETFs accounted for four of the 10 top positions in Freetrade users’ portfolios in 2024. They serve as a dependable foundation giving you exposure to a wide array of companies, industries, and commodities, bundled into one instrument.
Top 10 portfolio positions
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Based on the total settled positions value as of 1 January 2025.
UK Treasury bills turned out to be more popular than a mince pie at Christmas.
With over £570m invested in Treasury bills through Freetrade, it’s clear they caught the eye of many investors. And let’s not forget that you can now invest in Treasury bills directly within your ISA and SIPP, offering a tax-efficient way to access these low-risk, government-backed instruments.
It’s hard not to mention the Bank Rate whilst talking about UK Treasury bills. It remained relatively high for much of the year as efforts to combat inflation continued. It dropped to 5% in August, then 4.75% in November, marking a shift in the macroeconomic landscape.
Trading volume for 2024.
It’s been a busy year for IPOs, with over 100 new companies joining our stock universe. While tech dominated, it wasn’t all just about that - the most talked-about IPO of the year was Reddit. It certainly turned heads when it went public and became a popular choice for many investors.
Another notable IPO was Raspberry Pi, the UK manufacturer of tiny computers. It IPO’d on the London Stock Exchange in June 2024.
The choice to list in London was a refreshing change. The LSE has struggled to attract UK tech listings in recent years, as companies look to US markets for higher valuations and greater access to capital. Will 2025 see a turn of the tide for the LSE?
Top IPO buys of 2024
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Based on total value of buy orders as of 1 January 2025.
Freetrade’s user base has grown across the UK, and we’ve seen some regional differences when it comes to preferred stocks. In London, Manchester, and Bristol, NVIDIA was the top buy, highlighting the ongoing interest in AI computing.
But other cities had their own favourites. In Birmingham, MicroStrategy gained traction, while the iShares MSCI India (Acc) ETF found its place in Glasgow as more people looked towards emerging markets.
These regional differences highlight how, even within the same country, preferences can vary quite a bit - much like the great debate over the correct way to pronounce 'scone.'
Most popular buys by city in 2024
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Based on total value of buy orders as of 1 January 2025.
In 2024 we continued to build Freetrade, launch new features and instruments, and improve your experience. We’re continuing to make it easier to manage your investments, no matter where you are.
The UK Government’s latest budget has made it more important than ever to invest tax efficiently. With £40 billion in tax rises announced, this budget has some significant implications for investors, particularly when it comes to Capital Gains Tax (CGT).
CGT has jumped from 10% to 18% for basic rate taxpayers, and from 20% to 24% for higher rate taxpayers, meaning investments you hold outside of a tax wrapper could result in a chunky tax bill when sold.
Putting your investments in a stocks and shares ISA will shelter your gains from CGT, as well as tax on UK dividends. You can invest up to £20,000 per year into an ISA. Remember, the allowance resets each tax year, so use your allowance before the 5 April 2025 deadline hits.
As we enter 2025, interest rates are expected to continue to fall, which presents both challenges and opportunities for investors. High-growth industries like technology and communications, as well as commercial property and infrastructure, are well-positioned to benefit. These sectors often rely more heavily on long-term future earnings and projected growth, which become more attractive when rates decrease.
In a stable or declining interest rate environment, bonds can offer relative stability compared to more volatile assets like stocks. However, it's important to remember that bond prices are still subject to fluctuations, particularly when interest rates change.
On the other hand, sectors like banking and energy may face struggles. For banks, falling interest rates could reduce the difference between short-term borrowing costs and long-term lending rates, which impacts profitability. This happens because long-term rates often fall faster than short-term rates when the economy slows down, making it harder for banks to earn as much on loans.
The energy sector might also feel the pinch if lower interest rates signal slower economic growth and reduced energy demand. That said, if the economy picks up again, energy demand could recover too.
Overall, while the shift to lower interest rates has sparked optimism, market volatility remains a concern. Investors are advised to focus on long-term strategies, such as regular investing, to navigate potential turbulence and capitalise on opportunities across sectors.
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