As a huge music fan, this is one of my favourite times of year. Across the country, the summer concert season is in full swing. Whether it's fans packing into the Reading and Leeds festivals, music lovers enjoying the Proms at the Royal Albert Hall or the festival-goers who made their annual pilgrimage to TRNSMT in Glasgow last month, hundreds of thousands of people are spending their weekends watching the artists everyone is talking about.

And if there's one thing the music industry and financial markets have in common, it's that attention tends to gravitate towards the biggest stars.

That's certainly been true in markets this year.

One of the defining themes of 2026 has been investors piling into a relatively small number of sectors. Semiconductors, artificial intelligence, software and space-related companies have become the headline acts of the investment world, attracting huge amounts of attention and capital.

This week's chart, using data from Citadel Securities, shows that retail investors – individual investors who aren’t investment professionals – are increasingly joining the crowd. Unlike previous periods of heightened retail activity, where flows were spread across a wider range of sectors, today's retail investors are increasingly concentrating on the same themes.

Semiconductors stand out in particular and what's especially interesting is how investors are expressing their enthusiasm.

Many aren't simply buying shares. Instead, they're buying ‘call options’, a type of investment that gives investors the right to buy a share at a set price in the future. Call options are commonly used when investors believe prices will continue to rise. They can magnify gains, but, of course, they can also magnify losses. These are complex products and it’s possible some investors may not fully understand the risks involved.

Our chart shows that according to Citadel, which has about 30% of the US listed options market, the level of retail options activity involving semiconductor stocks this year is running at more than six times its historical average. About 75% of that activity is concentrated in call options, which is what we’re focusing on today.

As the chart shows, there have also been large increases in options activity in space-related, metals & mining and software stocks.

Put simply, investors aren't just attending the concert. They're buying front-row tickets and backing the headline act for an encore.

Of course, not every chart-topper goes on to become an Oasis, Coldplay or Harry Styles. Some dominate the headlines for a summer before fading from view. Investors face a similar challenge today. Are the sectors currently capturing investors' attention building lasting legacies, or are expectations beginning to run slightly ahead of reality?

Key takeaway

Retail investors are increasingly concentrating on the market's most popular sectors and using options to amplify that exposure. The surge in semiconductor-related options activity suggests conviction remains exceptionally strong. However, it’s worth remembering that while today's market leaders may continue their strong run, the top performers can change very quickly.

This is why we strongly believe in the value of diversified portfolios, with exposure to a range of global markets and investment styles. History reminds us that yesterday's hottest act isn't always tomorrow's headline performer.

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This article is provided for general information purposes only and should not be construed as personal financial advice to invest in any fund or product. These are the investment manager’s views at the time of writing and should not be construed as investment advice. The opinions expressed are correct at time of writing and may be subject to change. Capital is at risk. The value and income from investments can go down as well as up and are not guaranteed. An investor may get back significantly less than they invest. Past performance is not a reliable indicator of current or future performance and should not be the sole factor considered when selecting funds.