We’re at the halfway point of the year, so Stocks and Shares ISA investors may want to look at how well they’ve done so far. Overall, 2026 has been pretty good.
The year began with a burst of optimism, as investors looked forward to falling interest rates. These typically boost the economy by cutting consumer and business borrowing costs, giving everyone more money to spend. Equities tend to do well in that scenario, as investors anticipate rising company revenues and profits.
That expectation flipped in March, as the Iran war drove up the oil price and inflation. Expectations have since flipped though as peace talks drive oil back down. Markets are flying again.
Has this been a good year for shares?
Here’s how the three major global indices have done in 2026:
- FTSE 100: 7.36%
- S&P 500: 9.11%
- MSCI World Index: 9.94%
While the FTSE 100 has the lowest headline return, it has the highest yield at 3.3%. The S&P 500 yields just 1.1%, and MSCI World around 1.35%. So here’s the total return, including dividends. The FTSE 100 now beats Wall Street.
- FTSE 100: 10.66%
- S&P 500: 10.21%
- MSCI World Index: 11.29%
Finally here’s what they’d have done to a £15,000 investment, including dividends.
- FTSE 100: £16,599
- S&P 500: £16,531
- MSCI World Index: £16,693
Remember, this is just the six-month return. The real rewards from investing come over time periods measured in years and decades.
Today, it’s possible to get around 4% on an instant access Cash ISA. So savers could have got 2% so far this year. Which would have turned £15,000 into a more modest £15,300. Cash ISAs help savers avoid the volatility of equities, but over the longer term, they won’t make your money work as hard.
Polar Capital shares have seriously outperformed
Buying individual stocks can turbocharge returns, although the risks are greater too. Polar Capital Technology Trust (LSE: PCT) has had a stunning year, rising a staggering 47%. That would have turned £15k into £22,050, ignoring charges.
This isn’t a flash in the pan. Its shares have rocketed 87% in the last year, and 182% over five. It doesn’t pay any income.
Polar Capital Technology is an investment trust that manages a portfolio of almost 100 global technology stocks. Its biggest holdings include Nvidia, TSMC, Broadcom, Micron Technology, Google-owner Alphabet and Apple.
I recently switched my profits from a passive tech tracker into the actively managed Polar Capital, because it had outperformed over almost every investment timeframe. The charges are slightly higher but still modest at 0.69%. Yet today is a tricky time for investors considering upping their exposure to tech. The gains have been colossal, and many fear they could be unsustainable.
Will the AI bubble burst?
The big worry is that AI hyperscalers will fail to get a return on the billions they’re pouring into infrastructure, and the whole thing will come crashing down. On the other hand, this isn’t like the late 1990s dotcom boom. US tech giants are making profits. Well, most of them are.
No serious investor can afford to ignore US tech but at today’s dizzying valuations, it might be worth drip feeding money into the market. As ever, nobody knows what the next six months might bring.
Should you invest £5,000 in Polar Capital Technology Trust Plc right now?
When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.
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Harvey Jones owns shares in Nvidia and Polar Capital Technology Trust.
This story originally appeared on Motley Fool
