Top 10 Most Widely Held Stocks Globally Revealed

A recent report by Bank of America unveiled the top 10 most widely held stocks in global investment portfolios, showcasing their dominance and the continued popularity of the technology sector among investors.

The Most Held Stocks in Global Funds

Leading the list is Taiwan Semiconductor Manufacturing Company (TSMC), held by an impressive 95% of the analysed funds. Microsoft and Arm Holdings followed closely, tied for the second spot, with 88% of funds including these stocks.

Other prominent names on the list include Samsung at 83%, HDFC Bank from India, and Tencent from China, each appearing in 79% of global portfolios.

The remaining positions are occupied by Amazon, NVIDIA, and ASML, each held by 77% of funds, with Japan’s Keyence rounding out the list at 76%. This list underscores the technology sector's continued dominance in global investment strategies.

Equity Exposure Trends in 2024

According to Bank of America, long-only funds boosted their active equity exposure in 2024, adding $40 billion relative to benchmarks. However, fund managers encountered mixed results, with overweight positions underperforming underweights in most regions. An exception was the U.S., where overweights outperformed by a marginal 0.2%.

Sector-wise, the largest increase in active equity exposure was in U.S. Industrials, while U.S. funds also added positions in Financials. However, strategists noted difficulties in increasing exposure to large-cap Tech stocks due to their substantial index weightings.

Conversely, in Asia and Emerging Markets, funds reduced exposure to Financials while increasing allocations to Tech, reflecting regional investment shifts.

2025 Outlook: Opportunities in Financials and Tech

Looking ahead to 2025, Bank of America’s Triple Momentum analysis suggests a positive outlook for both Financials and Tech sectors. These areas are expected to offer compelling opportunities for increased active exposure, reinforcing their importance in portfolio strategies.

January Fund Manager Survey: Shifting Sentiment

In a separate January Fund Manager Survey (FMS), Bank of America highlighted strong investor optimism toward the U.S. dollar and equities, though sentiment on other asset classes remained bearish.

The survey revealed a decline in cash allocations to 3.9%, the lowest level since June 2021. This drop triggered a second consecutive "sell" signal under BofA's Cash Rule, a trend historically associated with weaker equity performance in subsequent months.

A net 41% of fund managers reported being overweight equities, though this figure represents a decline from the three-year peak of 49% seen in December.

Rotation from U.S. Stocks to Europe

The survey also noted a "big January equity rotation" from U.S. stocks to Europe. Exposure to U.S. equities dropped significantly from a net 36% overweight to 19%. Meanwhile, Eurozone stocks shifted dramatically, moving from a net 22% underweight to a 1% overweight, marking the largest monthly increase in Eurozone exposure in 25 years.

(Sources: investing.com, reuters.com, ChatGPT)