Top Funds and Stocks to Buy According to DIY Investors: May 2026 Insights from MoneyWeek
May 2026 proved to be a positive month for the stock market, with do-it-yourself (DIY) investors capitalizing on growth opportunities while also shoring up their portfolios with defensive picks. According to data from Interactive Investor (ii), a leading investment platform, May saw heightened activity in technology stocks—especially those linked to artificial intelligence (AI)—alongside steady interest in stalwart UK companies. Here’s a detailed look at which funds, stocks, and investment trusts captured the attention of DIY investors last month.
Market Overview: Growth Despite “Sell in May” Adage
Contrary to the old investment adage to "sell in May and go away," major indices recorded gains through the month. The S&P 500 surged by 5.1%, reflecting robust investor confidence in US markets, while the UK’s FTSE 100 climbed modestly by 0.3%. This positive backdrop encouraged DIY investors to increase their exposure to both growth-oriented and defensive assets.
Most Popular Stocks Among DIY Investors in May
AI and semiconductor stocks dominated DIY investor purchases, with Micron Technology (NASDAQ:MU) standing out as the most-bought individual stock. The semiconductor company has benefited from soaring demand for AI-related chips, alongside supply constraints and price increases, driving its shares to fresh highs.
Victoria Scholar, head of investment at Interactive Investor, commented:
"A combination of surging AI demand, supply shortages, and price hikes have pushed Micron’s stock to fresh highs and ignited heavy buying among ii customers."
Besides Micron, other tech giants such as Nvidia (NASDAQ:NVDA) were also popular buys. Still, many investors balanced their portfolios by buying FTSE 100 heavyweights including:
- BP (LON:BP)
- Legal & General (LON:LGEN)
- Lloyds Banking Group (LON:LLOY)
- Glencore (LON:GLEN)
NatWest Group (LON:NWG) made its way onto the list of popular picks, while the FTSE 250 low-cost carrier easyJet (LON:EZJ) dropped off.
Top 10 Most-Bought Stocks on Interactive Investor in May 2026:
- Micron Technology
- Nvidia
- Rolls-Royce
- Lloyds Banking
- BP
- Glencore
- Legal & General
- IQE
- NatWest Group
- ITM Power
Funds and ETFs: A Mix of Growth and Defensive Positioning
When it comes to funds, a clear divide emerged between investors seeking to protect capital and those chasing growth.
Money market funds remained a favorite for defensively-minded investors. The Royal London Short Term Money Market Fund topped the list of most popular open-ended funds, indicating ongoing demand for liquidity and capital preservation options.
At the same time, growth-oriented funds focused on technology attracted significant interest. The VanEck Semiconductor UCITS ETF (LON:SMGB), a new entrant to the most-bought list, climbed to fourth place among passive funds, buoyed by the strong performance of semiconductor stocks. Tom Bigley, fund analyst at Interactive Investor, explained:
"Many semiconductor shares have posted impressive returns so far this year, increasing the demand for funds in this sector. Micron, the top holding in VanEck Semiconductor, has surged more than 200% this year amid supply shortages for high-bandwidth memory essential for AI servers."
Other actively-managed technology funds such as Polar Capital Global Technology and the WS Blue Whale Growth Fund also featured prominently in the DIY crowd’s portfolios during May.
May’s Most-Bought Active Open-Ended Funds and ETFs:
- Royal London Short Term Money Market | Acc
- Artemis Global Income | Acc
- Polar Capital Global Technology | GBP
- WS Blue Whale Growth Fund
- Royal London Short Term Money Market | Dis
- Vanguard FTSE All-World UCITS ETF
- VanEck Semiconductor UCITS ETF
- Vanguard S&P 500 UCITS ETF | Acc
- Polar Capital Global Technology | GBP Hedged
- Vanguard LifeStrategy 80% Equity
Investment Trusts: Innovation and Space Dominate
Innovation-themed investment trusts attracted investor enthusiasm, especially those exposed to space and technology sectors. Scottish Mortgage Investment Trust (LON:SMT), which holds a significant stake in the upcoming SpaceX IPO, retained its position as the most-bought investment trust. The anticipation surrounding SpaceX went hand in hand with the popularity of space-focused funds.
Seraphim Space Investment Trust (LON:SSIT), another space-sector specialist, was May’s third-most popular investment trust, while tech-oriented trusts such as Polar Capital Technology Investment Trust (LON:PCT) also made the list.
Top 10 Most-Bought Investment Trusts on Interactive Investor in May:
- Scottish Mortgage
- Polar Capital Technology
- Seraphim Space
- 3i Group
- Greencoat UK Wind
- City of London
- Allianz Technology
- JP Morgan Global Growth & Income
- F&C Investment Trust
- Henderson FE Income
Conclusion
May 2026 demonstrated a nuanced approach among DIY investors, combining enthusiasm for booming tech sectors—especially AI and semiconductors—with caution via defensive money market funds and resilient UK blue-chip stocks. The strong demand for innovation and space investments further highlights the growth themes guiding retail investor interest heading into the summer.
For those looking to navigate the evolving market landscape, keeping an eye on both established stalwarts and emerging growth areas seems to be the preferred strategy among DIY investors.
This article is based on data and analysis from Interactive Investor and MoneyWeek. For personalized investment advice, readers should consult a qualified financial advisor.