What 2024’s hottest stocks reveal about Aussie investors

Index ETFs remain the favourite tool among Australian retail investors
AI chip maker Nvidia was their most traded individual stock for 2024
As value-first trading platforms bring the world to Australians, many are investing in sectors under-represented on the ASX

Special Report: As the mercury rises ahead of summer’s festivities, it’s time to unwrap 2024’s hottest securities – and look at what the trends reveal.

While Australia continues to box above its weight economically, at just 2% of the global share market capitalisation, the local offering can be limited.

But as value-first trading platforms bring the world to Australia, many investors seize the opportunity to buy into sectors and industries less well represented on the ASX.

Australia’s first AI-powered investment platform moomoo has put together the top 30 most traded securities for 2024 versus 2023, by both value and volume.

Often the components of these two lists generated by moomoo are very different, revealing unique insights. That’s because stocks favoured most by moomoo’s retail clients may not be the same as those of larger-scale investors. But not this year…

Biting into big tech

As it overtook Apple to become the world’s most valuable company, the number one stock among moomoo Australia’s customers by both volume of shares and the value traded was Nvidia.

At its peak, the total value of the specialist computer chip company’s shares hit a high above US$3.7 trillion and so far it’s up about 189% for the year.

Looking towards 2025, the appetite for AI-related investments appears to be as strong as ever.

Joining Nvidia on the top volume and value lists are other well-known US-listed tech giants. Microsoft, Meta, Apple and Amazon are popular with both investors and traders, though probably for different reasons.

While traders may favour the heavyweight tech stocks’ strong trends and higher volatility, investors may be moving into them to diversify their tech-lite Australian share portfolios.

ETF juggernaut rolls on

The other major trend is the rising popularity of exchange-traded funds (ETFs). The case for ETFs with tailored exposures at lower costs is compelling and since they came onto the scene more than 25 years ago, the variety on offer has become enormous.

The top traded list is dominated by index ETFs: The ASX 200, the S&P 500, the Nasdaq 100 and the MSCI international index are all prominent.

Many traders use index ETFs for short-term gains. They are also popular with investors who employ a core-and-satellite investment strategy, the core being passive investments with actively managed satellites added on to them.

Valuing specialist exposures

On the value list, specialist exposures take the top spots.

This may mean that those stocks’ stronger valuations and higher volatility drove heavy trading activity. Leverage is another important factor. Among the most selected securities are ETFs that magnify the daily returns of stocks such as Nvidia, MicroStrategy, Coinbase and the Nasdaq index.

Last year’s favourites GameStop and AMC Entertainment gave up the top two spots, but still show up at a lower position on the list. PayPal, Tesla and American sporting goods retailer UnderArmour also re-appear.

Aussie shares still make cut

The popularity of US stocks doesn’t mean the game has stopped for Australian shares. Perennial favouritesBHP (ASX:BHP) and Telstra (ASX:TLS) are notable entries on moomoo’s lists and remain among the most popular holdings with Australian investors.

Similarly, one of the most traded stocks this year was lithium and tantalum miner Pilbara Minerals (ASX:PLS).

Evolving scene

The top traded lists reflect the evolution of Australian retail investment as platforms make overseas trades more accessible.

While US shares increasingly take the limelight, the appearance of two China-exposed ETFs on moomoo’s lists could indicate an emerging trend.

Maybe next year we’ll see a Hong Kong stock make the lists.

Michael McCarthy is a market strategist at online broking platform moomoo Australia.

This article was developed in collaboration with moomoo Australia, a Stockhead advertiser at the time of publishing.

The views, information, or opinions expressed in the interviews in this article are solely those of the contributing author and do not represent the views of Stockhead.