Investors take a global approach and continue their streak of success – interactive investor publishes its ii Index for Q2 2026

 

interactive investor (ii), the UK’s second-largest platform for private investors, has published its latest instalment of the ii Index: providing unique insight on how interactive investor customers are performing and positioning their portfolios.
 
Key findings:
 

  • ii customers continue their streak of strong performance – with portfolio growth of 59.1% across six and a half years.
  • ETFs continue to grow in popularity with ii customers, now making up 13% of the average portfolio.
  • Investors take a global approach when constructing their portfolios, with global tracker funds well represented in the top holdings.
  • Gilts are also popular among ii customers, with T26A and TN28 featuring in the top holdings.
  • You can read the full ii Index report here.

 
Across the six years and six months we’ve tracked the data, since January 1, 2020, the average ii customer has seen their portfolio grow an impressive 59.1% – beating the aggregated performance of funds in the IA Mixed Investment 40-85% Shares sector (49%).
 
Note – we use this IA sector as a comparator for private investor portfolios, given its mix of bonds, cash, and equities.

The average ii customer also outperformed the benchmark across all timeframes measured.
 

6 years and 6 months 5 years 4 years 3 years 2 years 1 year
All ii investors 59.1% 41.8% 54.8% 46.9% 29.5% 19.4%
IA Mixed Investment 40-85% Shares sector 49% 32.4% 42.6% 38.1% 23.5% 17.1%

 
Performance data to 30 June 2026. Source: interactive investor/Morningstar.
 
Camilla Esmund, Head of Investor Campaigns at interactive investor, says: “Naturally, we don’t place lots of emphasis on short-term performance given the nature of investing, however – even over one-year, interactive investor customers have outperformed the professional benchmark. And it’s the young-uns who, although they have had the most varied performance by period, have delivered the highest one-year performance.

“More broadly, the average customer portfolio on interactive investor has grown almost 60% since we first launched this ii index. That is seriously impressive.

“What’s especially encouraging is that performance has been positive across every age group and time period that we’ve measured. Over the full 6 and a half years that we have measured this data, the 35-44 age group recorded the highest portfolio growth, closely followed by 45-54-year-olds. We hope this data continues to demonstrate that investing can be straightforward; that it’s possible to grow your money with consistent habits and a well-diversified portfolio, even in very financially demanding periods of our lives such as mid-life. One other key thing we know about investors with ii is that they’re fee-savvy, too, and that has been paying off, ensuring that fees are not eating into these growing returns over time.”
 
Age analysis – performance
 

6 years and 6 months 5 years 4 years 3 years 2 years 1 years
18 – 24 59.8% 35% 57.9% 47.7% 29.1% 21.1%
25 – 34 61.7% 36.1% 56.5% 45.9% 26.8% 18.6%
35 – 44 63.4% 40% 56.6% 47.6% 29.2% 20.4%
45 – 54 62.8% 41.7% 56.9% 48.3% 30.1% 20.7%
55 – 64 59.5% 41.1% 54.9% 47.2% 29.5% 19.4%
65+ 56.6% 40.8% 53% 46.1% 29.3% 19.1%

 

Where are interactive investor customers putting their money?
 

ETFs have grown in popularity yet again – now making up 13% of customer portfolios, up from 12% last quarter. They are most popular among those aged 25-34, where they make up almost one quarter (24%) of their portfolios.

Allocations to equities have slightly lowered this quarter, down from 32% last quarter to 30%. There also continues to be a large gap in the way that our oldest and youngest investors hold equities – as they make up only 18% of portfolios for ii’s youngest investors (18-24) compared to 37% for the oldest investors (65+).

Funds also make up a large part of portfolios – up to 29% on average compared to 28% last quarter. They are most popular with ii’s youngest investors, making up over one third (34%) of their portfolios.

Investment trusts stay mixed between different age groups, most popular among the youngest (18%) and oldest (22%) investors, but lowering to just 7% for those aged 35-44.

Portfolio breakdowns across ages

Age Band Cash Equity ETP (includes ETFs) Fund Investment Trust Other (Bonds)
18-24 9.2% 18.1% 18.1% 33.9% 17.5% 3.2%
25-34 8.2% 17.9% 23.6% 31.9% 12.6% 5.8%
35-44 7.9% 21.1% 23.4% 33.2% 7.4% 7%
45-54 8.2% 25.8% 18.4% 33.6% 8.1% 5.9%
55-64 8.2% 28% 13.6% 32.7% 12.4% 5.1%
65+ 7.7% 37.3% 7.1% 22.7% 22.4% 2.8%
Average 8% 30.2% 13.2% 29% 15.1% 4.5%

 
Kyle Caldwell, Funds and Investment Education Editor at interactive investor investigates the latest trends, explaining: “So far this year, global equities have continued to rise despite geopolitical tensions, a higher oil price, and concerns over the inflationary impact of higher energy costs. In addition, despite the occasional short-term blip, technology shares continued to power higher amid plenty of investor enthusiasm over the potential of artificial intelligence (AI) advancements. Moreover, the much anticipated IPO of SpaceX attracted plenty of interest among investors.
 
“There are reasons for caution, with question marks over whether the scale of capital expenditure on AI developments will lead to the earnings growth that investors hope. Moreover, stock market concentration risk also gives pause for thought, with the so-called ‘Magnificent Seven’ accounting for around a third of the S&P 500 index versus around 12% a decade ago. For the global stock market those seven firms are approaching a quarter of the index.

“Against this backdrop, investors appear to be adopting a ‘half glass full’ mentality, reflected by cash weightings declining across the board in the second quarter. Once again investors continue to seek out global diversification rather than focus on particular regions. Among the top 10 holdings global tracker funds are well represented, alongside some active funds: Scottish Mortgage, Alliance Witan and F&C Investment Trust. For investors that mix and match between both active funds and tracker funds, it is prudent to look under the bonnet to ascertain how the active fund invests differently from the wider global market.

“While cash weightings have dropped, from 9.2% to 8.0%, defensive strategies are being utilised, with Royal London Short Term Money Market featuring heavily. Money market funds own a diversified basket of low-risk bonds that are due to mature soon, normally within just a couple of months, meaning that investors can earn an income on their cash with minimal risk.

“Investors in such funds will be breathing a sigh of relief as this fund type was subject to speculation of being caught up in a new tax charge on cash interest within a stocks and shares ISA from the start of the next tax year – 6 April 2027. In an update from the government, in which the new flat-rate charge of 22% was announced on interest paid on cash in an investment ISA, the rules stated that money market funds can be held as long as they do not comprise 100% of the value of investments in a non-cash ISA.”

You can read the full ii Index report here.



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