Which stocks are investors buying during the market crash?

Posted: 6 April 2020 3:59 pm

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Many of the top 20 most-bought stocks and ETFs last month were also among the most sold.

Australian investors seem to be wholly torn on whether the stock market is on the verge of a recovery or in the early stages of a bear market – at least according to the most-bought and sold securities during the market crash.

A market crash can be both a risky time to buy stocks and a great opportunity to invest in good quality companies at discount prices.

According to the list of most-bought and most-sold shares and ETFs last month on portfolio tracker Sharesight, Australians see a strong case for both sides of the argument.

Many of the top-bought companies in March were also among the most sold stocks and ETFs were just as divisive, showing investors are split on whether prices will keep falling or soon start to rise.

In fact, the two most-bought securities were the Vanguard Australian Shares Index ETF (ASX:VAS) followed by the BetaShares Australian Equities Strong Bear Hedge Fund (ASX:BBOZ).

Because VAS tracks the 300 biggest companies on the ASX by market capitalisation, buyers are backing the broader stock market to rise. At the same time, contrarian investors are betting that stocks will continue falling by investing in BBOZ, a hedged ETF that delivers returns as the stock market falls.

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Similarly, the bullish BetaShares Australia 200 ETF (ASX:A200) and bearish BetaShares US Strong Bear ETF (BBUS) featured on both the most-bought and most-sold list.

Meanwhile, top-bought stocks NAB, CBA, Woodside Petroleum, BHP and Afterpay, Westpac, Macquarie, ANZ, CSL and Telstra were also the most sold.

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While investors both actively bought and sold bear market ETFs in March, investors appear to be a little more bullish than bearish on the market.

The BetaShares Australian Equities Strong Bear Hedge Fund (ASX:BBOZ) and BetaShares US Strong Bear ETF (BBUS) topped the list of most-sold securities along with hard-hit BNPL stock Afterpay.

Stocks that only appeared on the most-sold list include a2 Milk Company, Appen and EML Payments.

For more guides on how to invest during the market crash, head over to our coronavirus investing hub.

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