The most popular funds, trusts and ETFs for SIPP investors age 66 and older
| Top funds, trusts and ETFs | 5-year performance average |
|---|---|
| Scottish Mortgage Investment Trust | 5% |
| AJ Bell Balanced | 6.6% |
| Fundsmith Equity Fund | 6.1% |
| AJ Bell Moderately Adventurous | 8.5% |
| AJ Bell Adventurous | 10.6% |
| City of London Investment Trust | 9.3% |
| JP Morgan Global Growth & Income | 14.5% |
| Fidelity Index World | 12.9% |
| iShares Core FTSE 100 | 13% |
| AJ Bell Global Growth | 10.4% |
| Polar Capital Technology Trust | 14.8% |
| GreenCoat UK Wind | 2.2% |
| BlackRock World Mining Investment Trust | 13.1% |
| Alliance Witan | 11.6% |
| iShares S&P 500 ETF | 14.6% |
| F&C Investment Trust | 12.8% |
| Murray International Trust | 15.3% |
| iShares Physical Metals/Physical Gold ETF | 12.5% |
| AJ Bell Moderately Cautious | 4.5% |
| Fidelity Global Special Situations | 10.7% |
Source: FE Fundinfo total return
Investment trusts were popular among this crowd. One of the advantages of the investment trust structure is that it can offer more consistent dividend payments to its investors, because it’s able to hold some money back during high performance years and pay it in a more even keel during low-performance years. This can help those in retirement who would like to have some sort of regular income through their investments.
Scottish Mortgage Investment Trust and City of London Investment Trust are both referred to as ‘dividend heroes’ by the Association of Investment Companies (AIC), meaning they have consistently increased their dividends for over 20 years in a row.
Like the SIPP investors under 66, AJ Bell’s multi asset range is a popular investment option for the older group. While investors over 66 did primarily opt for slightly lower-risk options, such as the balanced fund, interestingly they choose funds with higher return opportunities, like global growth, over the income fund.
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