US exodus: AJ Bell investors bring their holdings home

In the past year, AJ Bell investors have changed course: instead of putting their money across the pond in the US market, they’ve been bringing their funds home.  

While last year saw DIY investors withdraw large amounts of money from the North American funds sector, AJ Bell data also showed notable withdrawals from UK All Companies sector funds. Despite growing positivity towards the UK market by the end of 2025, investors seemed hesitant to put their money where their mouth was. That's now changing.

Although the government is desperate for investment into ‘UK plc’, renewed interest in the home market isn’t just a bout of patriotism. It’s also a reflection of wanting to dial down exposure to the US amid concerns of high valuations and, for some, a dislike of political policy. Investors have looked at other parts of the world for cheaper markets and more diverse industry exposure, with the UK ticking both boxes. 

This aligns with a fair amount of market turmoil last year, as investors grappled with tariffs and the possibility of an AI bubble, both of which would have a strong effect on the US market as well as those abroad. Interestingly, the only quarter that saw positive inflows to these US funds last year was April to June, following Liberation Day. This could perhaps be investors buying the dip in the market or choosing to invest in the country enforcing the most tariffs.  

While North American funds have continued to see outflows in 2026 so far, the UK All Companies sector has sprung into the positive for AJ Bell customer demands.  

It’s important to note that these two sectors don’t encompass all flows in and out of the US and UK. But the pattern looks similar for index-tracking ETFs, which are some of the most popular choices for investors. ETFs that focus on the US tech sector make up three of the top six investments with the largest outflows this year. These funds have been hit with a double blow; first to reputation, with rising concern about the price of AI companies and their expenditures and worries about the Iran conflict and Donald Trump.  

Conversely, the iShares MSCI World ex-US fund is currently one of the most popular choices for investors on AJ Bell’s platform. Funds tracking the standard MSCI World index would have about 70% of their assets in the US. Choosing to opt out of holding these companies shows a group of investors with not just an indifference to the US, but an active avoidance.  

Many of the other top five investments currently include global tracker funds. While these can still be a strong choice for a portfolio, it’s important for investors to understand that global exposure in many cases means large US exposure. For example, the FTSE All World has a near 60% exposure to the US.

The UK funds drawing in investors

While the UK market performed well last year and at the start of this year, 2023 and 2024 were harder for the market while the US soared. For long-term investors, it’s worth considering if the UK’s recent success is the start of a longer trend, or a market blip.

The UK offers companies with longstanding track records, but it doesn’t have the growth prospects of the US, especially when it comes to tech. This doesn’t make it better or worse, just suited to a different set of investors, or to act as a different part of a portfolio. Historically this has meant slower growth. But the gap has narrowed, and over the past five years, returns have been broadly similar. The FTSE 100 has returned 82% and the S&P 500 86%, in pound sterling terms (at 18 March 2026).  

Here are the top funds in the Investment Association UK All Companies sector that are drawing in AJ Bell DIY Investors this year. 

Many of the funds listed in the table track an index of the UK's biggest companies, which means that they will have very similar holdings. However, Artemis UK Select, Fidelity Special Situations, Invesco UK Opportunities and the Jupiter UK Dynamic Equity fund all have active managers, meaning their stocks are hand selected by teams of experts. The Artemis SmartGARP UK Equities fund also creates its own criteria, led by an approach known as ‘growth at a reasonable price’ (hence, GARP).  

The past week has brought dips to both the US and UK markets, as the war in Iran wages on and oil prices stay high. In times of volatility, it can be helpful to think about your original investing philosophy. For those that have moved assets to the UK, reflecting on why you made the choice can add a level of comfort.