Saxo: US and Magnificent Seven stocks still dominate for UK investors

Saxo has analysed UK client trading activity in July and August which reveals that US equities remain dominant, with six of the ‘Magnificent Seven’ (excluding Microsoft) still among the most traded stocks.

This mirrors the global picture, despite ongoing concerns around US economic resilience and capital outflows. Tesla, NVIDIA, and Palantir Technologies were the top three traded stocks in the UK. Globally, Novo Nordisk stood out as the summer’s breakout story, accounting for nearly one in three of the world’s top 10 trades.

Saxo, which provides access to over 70,000 instruments across asset classes, notes a clear shift in investor behaviour: many have been lured away from diversification towards concentrated tech holdings in search of outsized returns. While rewarding in the short term, this approach carries risks. Today’s market backdrop, persistent inflation, geopolitical volatility, and widening interest-rate differentials, underscores the importance of building resilience through diversification.

This is not about diluting returns, but about positioning for cycles ahead. Multi-asset strategies in particular can help investors manage concentrated sector risks while unlocking opportunities across geographies, asset classes, and currencies. Reflecting this shift in mindset, Saxo has recorded a 35% increase in ETF trading as investors seek cost-efficient, broad market exposure. Hedging activity has also risen as clients look to protect against downside risk.

The message is clear: diversification is far from outdated. It remains the cornerstone of robust, long-term investing, especially in a world where today’s winners may not lead tomorrow’s growth.