How did AJ Bell DIY investors react as conflict escalated in the Middle East?

Dips and dividends were the key trends for AJ Bell DIY investors responding to Middle East conflict-driven market volatility last week. There were twice as many buy trades than sells between 2 and 6 March, implying that investors saw an opportunity to buy companies or funds at depressed prices.

While there remains considerable uncertainty around the conflict and what it could mean for inflation and the direction of interest rates, certain investors might have taken a longer-term view. They might believe near-term earnings could disappoint and that’s already reflected in lower share prices, but they could also be confident an eventual resolution of the crisis paves the way for longer-term earnings growth.

Buying the dip: airlines and housebuilders

British Airways owner International Consolidated Airlines (IAG) and EasyJet were among the most bought stocks on the AJ Bell DIY investor platform last week amid a massive share price slump. IAG’s shares fell 14.3% on the week amid Middle East flight cancellations, airspace disruption forcing detours, higher costs off the back of the spike in oil prices and worries about near-term demand.

The airline industry is no stranger to dealing with crises. Investors buying on the AJ Bell platform might have taken the view that IAG’s recent results showed a business in good health, and that it can bounce back from current setbacks.

Housebuilders were also popular stocks to buy on share price weakness. A mixture of bad news from Vistry around margins, and weaker sentiment more broadly amid fears that interest rates could stay higher for longer, weighed on the sector last week.

Housebuilders typically benefit from lower rates as mortgages become more affordable. They now face the prospect of rates staying level or even going up if the Iran crisis triggers a new spike in inflation, essentially acting as a headwind for mortgage affordability and therefore reducing the potential customer base. Housebuilders Vistry and Taylor Wimpey were among the most-bought stocks on AJ Bell’s platform last week.

The search for big dividends

Greencoat UK Wind was among the most bought investment trusts on the platform as the Iran crisis unfolded. There are two potential reasons for its popularity. First is that a sharp rise in the cost of oil and gas might prompt businesses to seek alternative sources of energy. Investors may have taken the view there could be increased demand for renewable energy, and Greencoat UK Wind is a known entity in this space. Second is a juicy dividend yield approaching 11%. Stock markets might be experiencing a wobble, but generous dividends mean investors are being paid to ride out any volatility.

Supermarket Income REIT was another popular name on the AJ Bell platform last week. It’s likely to have come on the radar of individuals looking for investments less correlated to the markets. It owns buildings that operate as supermarkets, collecting rent from big name tenants in the grocery sector including Tesco, Sainsbury’s and Aldi. Everyone must buy food and drink no matter what’s happening in the world, and the UK’s big grocers are deemed low risk from a tenant perspective. A 7.3% dividend yield is also attractive in a wobbly market environment.

Certain investors were happy to carry on with their investing plan, as evident by the ongoing popularity of multi-asset funds offered by AJ Bell and Vanguard, and global equity tracker funds.

What was least popular?

Terry Smith-managed Fundsmith Equity was among the most unpopular funds with investors during the week, based on net sells on the AJ Bell platform. Its latest factsheet shows the fund lagged the market in the first two months of 2026, extending a long period of underperformance*.

*Source: Fundsmith Equity fund factsheet (March 2026)