The ASX 200 fell by 0.1% last month, with weakness at the top end of town swaying the market as energy players, iron ore majors and shares from the industrials sector weighed on the index. 

In contrast, micro and small cap stocks fared particularly well, with the S&P/ASX Emerging Companies Index up 4.2%, and the S&P/ASX Small Ordinaries Index gaining 0.9% in October. Health care stocks and tech shares were also a bright spot for the market, taking a lead from strong performances in overseas markets.

Based on data from the ASX, these trends unfolded on the back of a surge in trading across the entire industry, with average daily trades up 15% on the prior corresponding period, and the average daily value of shares traded up 18% versus a year prior.Meanwhile, here is what the Selfwealth community were buying and selling across the ASX through their Selfwealth trading accounts during October.

Which shares and ETFs were the most held?

Commonwealth Bank (ASX: CBA) retained its position as the most-held share within the Selfwealth community. Despite CBA completing its off-market buyback, which saw a number of holders pare their stake in the company, the value of CBA shares held via the Selfwealth platform grew by 3%, outpacing the 0.3% gain in the underlying stock.  Each of the nation other leading banks recorded a net inflow of funds last month, indicating broad-based support for the sector, even as some names like Westpac (ASX: WBC) and ANZ (ASX: ANZ) struggled for direction. It was a different story for Macquarie Group (ASX: MQG), however, with the stock hitting an all-time high and passing $200 a share on a strong outlook, and also seeing the strongest month-on-month growth in holdings among its peers, up nearly 13% in value.Selfwealth members were using the recent dip in iron ore prices as an opportunity to increase their stake in Fortescue Metals Group (ASX:FMG), with the company also ending the month with an update that showed record shipments for any first quarter in its history. While FMG shares dipped 6.9% across the course of the month, the value of FMG holdings leapt by more than 21% across the Selfwealth platform as its dividend yield resonated with investors.Elsewhere, Zip (ASX: Z1P) and Woodside Petroleum (ASX: WPL) were the only names that saw an outflow in terms of funds. Both popular names slipped in October as their performances lagged the broader market, and with their quarterly reports falling short of expectations. Zip has been attracting concerns as the RBA mulls the prospect of removing the no surcharge rule on BNPL services, while Woodside production figures declined by 2%, giving rise to concern around its growth trajectory.Icannex Healthcare (ASX: IHL), making its second appearance among the top names, was actually  the biggest mover of any top 20 stock, leaping higher into 14th position. With the value of IHL shares across the community growing by just shy of 35% in October, IHL was also the stock with the largest growth in holdings, albeit this was again largely fuelled by a small section of Selfwealth members. 

IHL has been on a tear in 2021, and it comes as Selfwealth members eye greater exposure to biotech names, especially those on the forefront of pioneering novel solutions and therapeutics. Incannex has six product candidates in clinical trials locally, including treatments for sleep apnea and traumatic brain injury in Phase 2a trials, plus treatments for rheumatoid arthritis and irritable bowel syndrome in Phase 1 trials.

Finally, debutants in the list of the top 20 most-held stocks included Liontown Resources (ASX: LTR) and Washington H. Soul Pattinson (ASX: SOL). The former was buoyed by surging lithium interest, with the sector already a favourite among Selfwealth members, and recently given a shot in the arm as the developments of the EV sector and share price of Tesla take off. On the other hand, SOL made an appearance after wrapping up its merger with Milton Corp (ASX: MLT), a former community stalwart.ASX StockCompany1CBACommonwealth Bank2CSLCSL Limited3WBCWestpac4NABNational Australia Bank5MQGMacquarie Group6AFIAustralian Foundation Inv7BHPBHP8ANZANZ9FMGFortescue Metals Group10TLSTelstra11Z1PZip Co12APTAfterpay13WESWesfarmers14IHLIncannex Healthcare15FLTFlight Centre16LTRLiontown Resources17SOLWashington H. Soul Pattinson and Co18QANQantas19WPLWoodside Petroleum20ARGArgo Investments

The top 10 ETFs being held across the Selfwealth community remain unchanged as at the end of October. However, the top 10 ETFs now account for 26.5% of the value of all ASX holdings across the Selfwealth platform, while the top 50 ETFs represent 36.5%.

This data indicates ETFs are a popular choice among those eyeing exposure to the market as the ASX has drifted sideways for the best part of the last four months. Further underscoring this point, the majority of the top 10 ETFs recorded mid-to-high single-digit growth in terms of the value of holdings. Index-oriented ETFs and tech ETFs are still the clear themes preferred by Selfwealth members, which suggests these ETFs are largely being used as a risk management' tool.

ASX ETFsCompany1VASVanguard Australian Shares Index ETF2VDHGVanguard Diversified High Growth Index ETF3VGSVanguard MSCI Index International Shares ETF4VTSVanguard U.S. Total Market Shares Index ETF5IVVIshares S&P 500 ETF6A200BetaShares Australia 200 ETF7NDQBetashares Nasdaq 100 ETF8VEUVanguard All-World ex-U.S. Shares Index ETF9VHYVanguard Australian Shares High Yield ETF10ASIABetaShares Asia Technology Tigers ETF

ASX share trading activity

As touched on earlier, lithium stocks are right up there as one of the most-prevailing trends across the Selfwealth community. Many of the lithium names that featured as the most-traded stocks have ranked highly in previous months, but a number of breakthroughs occurred as Selfwealth members looked at the strength across the broader sector to draw inspiration for trading ideas. 

On this note, Pilbara Minerals (ASX: PLS) was the 12th most-traded stock by value, while Core Lithium (ASX: CXO), which broke out to an all-time high last month, also made the cut at number 19. Both of these stocks were actively-traded as well, each making the top 20 by filled orders, and also joining the likes of Vulcan Energy Resources (ASX: VUL), Lake Resources (ASX: LKE) and Novonix (ASX: NVX) as Selfwealth members voice a clear mandate in backing battery metals as a driver for future energy needs. While battery metals resonated across the Selfwealth community, the appearance of Whitehaven Coal (ASX: WHC) also proved that members are willing to follow the momentum where a trend is in play. With a 19.2% drop across the month, sell orders accounted for the majority of trading in WHC shares, with the coal stock under pressure as China seeks to curb runaway thermal coal prices. After sell orders dominated trading activity in Flight Centre (ASX: FLT) shares during September, momentum reversed course in October. Nearly 60% of the value of shares traded were buy orders, a turnaround likely due to confirmation that Australia would restart international travel and do away with hotel and home quarantine in the country two most-populous states.BHP (ASX: BHP) was an active trade as it drew significant buying activity from Selfwealth members looking to buy the dip. The stock has had a tumultuous time in recent months with iron ore prices in freefall, yet as many as 80.9% of all trades last month were buy orders, and two-thirds of all shares traded by value were purchases.  Last but not least, a familiar host of ETF names made the cut, in some cases with more sell orders and volume than usual, albeit the BetaShares Global Sustainability Leaders ETF (ASX: ETHI) defied that trend. With ESG investing becoming a hot topic in recent months, especially amid widespread attention to net-zero policy and COP26, the ETHI ETF was the 20th most-active stock by trades filled. Nearly 86% of all orders were buy orders, highlighting the long-term conviction behind ESG investing.Top 20 stocks traded by valueCode SecurityBuy-Sell Ratio1ANZANZ50.9%2FMGFortescue Metals Group64.6%3WBCWestpac52.9%4CBACommonwealth Bank47.1%5BBOZBetashares Australian Equities Strong Bear Hedge Fund51.0%6BHPBHP66.1%7VASVanguard Australian Shares Index ETF73.4%8CSLCSL44.4%9FLTFlight Centre57.8%10Z1PZip53.2%11GEARBetaShares Geared Australian Equity (Hedge Fund)51.7%12PLSPilbara Minerals51.1%13VDHGVanguard Diversified High Growth Index ETF83.8%14VGSVanguard MSCI Index International Shares ETF86.5%15NDQBetashares Nasdaq 100 ETF62.7%16A2MA2 Milk47.9%17WHCWhitehaven Coal47.1%18WPLWoodside Petroleum51.0%19CXOCore Lithium55.1%20IVViShares S&P 500 ETF67.5%

That all for this Trade Trends report, stay tuned for the next edition this time next month!