It’s often said, “as goes January, so goes the year”. This investment adage, widely known as the January Effect, bodes well for US shares in 2025. After a downbeat end to 2024, US stocks rebounded strongly in January with the S&P 500 gaining 2.7% and an even stronger performance for the broader equal-weighted benchmark, up 3.4%.
Investor activity in January highlighted clear trends, with US tech, equity funds and global diversification emerging as dominant themes shaping investment decisions. Fidelity International’s (‘Fidelity’) sales data for January sheds light on the funds, investment trusts and shares that captured the attention of investors in the first month of 2025.
The best-selling funds, investment trusts and shares on Fidelity Personal Investing in January 2025
Tom Stevenson, Investment Director at Fidelity International comments: “US market exposure continued to stand out across funds, trusts, and shares in January. Technology giants like Nvidia, Advanced Micro Devices, Meta Platforms and Amazon featured prominently in individual share purchases, reflecting strong confidence in the continued dominance of US innovation. It remains to be seen whether the emergence of a cost-effective Chinese AI competitor in DeepSeek tempers enthusiasm in this space.
“The appearance of the UBS S&P 500 Index Fund confirms that many investors are still looking for a simple, low-cost exposure to the US market. But Brown Advisory US Smaller Companies Fund and Artemis US Smaller Companies Fund, as well as Dodge & Cox Worldwide Global Stock, point to a desire to diversify away from the handful of leading tech stocks that have led the US market higher and towards less highly valued smaller company and value-focused funds.
“The continued popularity of the Legal & General Global Technology Index Fund underscored the ongoing demand for exposure to US-led innovation in technology. Meanwhile, investment trusts like the JP Morgan American Investment Trust reinforced this trend, providing diversified exposure to US equity markets.
“Investor interest also remained firmly fixed on sustainability, with renewable energy investments continuing to attract attention. The Greencoat UK Wind and Octopus Renewable Infrastructure Trust demonstrated the sustained appeal of sustainable infrastructure, despite a possible shift in the attitude to climate change, and investment in renewables, under the Trump administration.
“Alongside these growth opportunities, global diversification gained traction. Funds like the Legal & General Global Equity Index Fund and Dodge & Cox Worldwide Global Stock Fund offer investors access to balanced exposure across regions, enabling broader portfolio diversification. Investment trusts like the AVI Global Trust and Schroder Japan Trust highlighted growing interest in regional opportunities outside of traditional markets, signalling a strategic approach to mitigating risk through geographic spread.
“While growth-driven investments dominated the top picks, investors also prioritised stability. Cash and money market funds like the Royal London Short Term Money Market fund and infrastructure-focused trusts like the International Public Partnership Trust provided defensive options for those seeking security amid uncertain market conditions.”
