UK investment trust ownership falls as ETF use surges

Boring Money’s Investment Trust Report 2026 found ownership of investment trusts among UK retail investors fell to 9% from 12% over the past year, leaving an estimated 2.18 million holders. The report also shows exchange-traded fund ownership rose from roughly 5% to nearly 20% of investors over six years.

The report, published in 2026, records the lowest level of trust ownership since Boring Money began tracking adoption in 2021. Ownership among investors aged 35–54 fell from 12% to 7% in the past year, a decline of more than 40%. Among investors under 35, trust ownership increased from 7% to 9%.

Ownership of pooled funds declined from 23% to 19% over the same period, while the longer-term trend for funds remained broadly stable, the report states.

“Saba created upheaval in the industry and highlighted the importance of the retail investor vote. This coupled with declining levels of adoption is a real call to action for Boards to engage with the customers of tomorrow and demonstrate the role that trusts have to play in an investor’s portfolio,” Holly Mackay, chief executive of Boring Money, noted.

“Interestingly we have seen a small 2 per cent increase (from 7 per cent–9 per cent) in adoption from the under-35s. To try to capture some of the growth going to ETF providers, investment trusts have more to do to communicate their benefits to a broader investor base which has higher expectations for simple, compelling messaging and competitive price points,” Holly Mackay added.

The report recommends that boards and asset managers present investment trusts with clearer messaging and competitive costs to respond to falling adoption and to reflect demographic shifts, including the decline among middle-aged investors and modest gains among younger savers.