While the US share market rally continued at full steam throughout July, it was a different story for the ASX, which stalled in its recovery. In what was largely a steady month of trading, the market inched towards its highest level since early-March, before the ASX 200 ultimately settled just 0.5% higher for the month.The materials sector provided a resilient backdrop for the ASX, with mining stocks performing strongly on the back of surging gold and iron ore prices. Elsewhere, the information technology sector had a bumper month thanks to strong investor appetite for growth stocks in the US. Finally, the consumer staples sector also put in a solid performance as local investors watched panic buying unfold in Melbourne supermarkets once again.Here is what the Selfwealth community were buying and selling through their Selfwealth trading accounts during July.

Which shares and ETFs were the most held?

For the first time since the market sell-off in March this year, there were net outflows in the value of holdings for Westpac (ASX: WBC) and ANZ (ASX: ANZ). Typically there would be steady growth in these holdings across the Selfwealth community, particularly as new investors sign up to our online share trading platform. However, the decline can be attributed to the falling share price of both stocks, and a rotation into Commonwealth Bank (ASX: CBA) due to its relative outperformance.The clearest trend to emerge in July, however, was the support for buy-now pay-later stocks such as Afterpay (ASX: APT) and Zip Co (ASX: Z1P). These shares have climbed rapidly up the list of the top 20 most-held stocks by Selfwealth members. Afterpay slotted into a new high of 6th position, while Zip landed in 12th position, which was also a record.During July, Afterpay share price surged 12.4% and Zip Co share price leapt 13.8%. However, as a sign of the momentum behind both stocks, the value of members' holdings in the duo climbed 40.1% and 36.3% respectively. This suggests a huge volume of new holders joined each company register. Selfwealth members have a larger stake in these two shares combined than any other individual stock except for CSL (ASX: CSL), which remains a stalwart at the top of the list.The other major mover last month was Fortescue Metals Group (ASX: FMG), which rose from 19th on the list into 15th position. Shares in FMG have been on a tear in 2020, with the stock up approximately 70% year-to-date.

In July alone, FMG shares soared 25.7% thanks to the robust price of iron ore, as well as the company fourth-quarter production report. The report showed record iron ore shipments and helped the miner beat its FY20 guidance. With these tailwinds in mind, investors heavily backed the stock. The total value of FMG shares held through the Selfwealth platform increased 44.1%, more than any other stock in the top 20.

Telstra (ASX: TLS) shares were also in favour, as total holdings in the stock grew by 12.8%. While the telecommunications giant did not release any price-sensitive news in July, the stock posted a sharp rebound immediately following EOFY. This suggests there may have been some tax-loss selling that weighed on the stock in the final weeks of May and June.StockCompany1CSLCSL Limited2CBACommonwealth Bank3NABNational Australia Bank4WBCWestpac5AFIAustralian Foundation Inv6APTAfterpay7SWFSelfwealth8MQGMacquarie Group9BHPBHP10ANZAustralia and New Zealand Banking Group11TLSTelstra12Z1PZip Co13WESWesfarmers14ARGArgo Investments15FMGFortescue Metals Group16WPLWoodside Petroleum17NEUNeuren Pharmaceuticals18MLTMilton Corp19WOWWoolworths20RIORio TintoFor the second month in a row, the top 10 ETFs held by Selfwealth members remained unchanged. We witnessed a flow of capital out of the Ishares S&P 500 ETF (ASX: IVV), where the value of funds in this ETF declined by 1.2% even though the S&P 500 rose 5.5% across the month.Unlike June, investors did not shy away from the US market altogether. There was a significant increase in the value of funds held in the Nasdaq 100 ETF (ASX: NDQ). The total value of holdings in NDQ increased by 12.6%, which was far in excess of the 6.8% rise in the underlying index it tracks.

The value of Selfwealth members' holdings in all of the other ETFs in the top 10 saw mid-to-high single-digit growth.

ETFCompany1VASVanguard Australian Shares Index ETF2VDHGVanguard Diversified High Growth Index ETF3VGSVanguard MSCI Index International Shares ETF4VTSVanguard U.S. Total Market Shares Index ETF5A200BetaShares Australia 200 ETF6IVVIshares S&P 500 ETF7VEUVanguard All-World ex-U.S. Shares Index ETF8NDQBetashares Nasdaq 100 ETF9AAAAAA Australian High Interest Cash ETF10STWSPDR S&P/ASX 200 Fund

Which shares and ETFs were the most traded?

As mentioned earlier, the level of interest in buy-now pay-later stocks was one of the significant trends from July. Not only were Zip Co and Afterpay the most-traded stocks by value, but they were also the leading stocks in terms of the most orders placed through the Selfwealth platform. In total, there were over 8,200 trades involving these stocks, with the majority being Zip shares.In addition, there was also a significant increase in trades of Openpay (ASX: OPY), Sezzle (ASX: SZL) and SplitIt (ASX: SPT), which all featured among the top 20 stocks traded by value. There were more than 4,500 trades made in relation to these shares.The Australian Equities Strong Bear Fund (ASX: BBOZ) was still in high demand last month as investors continue to heavily trade the inverse ETF. With the Australian economy showing various signs of weakness, BBOZ holders may be anticipating that weakness to translate into an impact on some of the market biggest stocks. Despite elevated interest, BBOZ recorded its largest month-on-month drop in terms of trading activity, with trade values down approximately 44%.The rise of Fortescue Metals Group (ASX: FMG) from 19th to 15th on the list of the most-held shares by Selfwealth members was driven by major buying activity. The stock ranked as the 5th most-traded share by value in July.Australian index-based ETFs such as Vanguard Australian Shares Index ETF, SPDR S&P/ASX 200 Fund (ASX: STW) and BetaShares Australia 200 ETF (ASX: A200) were all popular trading ideas among the Selfwealth community as well.Top 20 stocks traded by valueCodeSecurity1Z1PZip Co2APTAfterpay3BBOZBetashares Australian Equities Strong Bear Hedge Fund4CSLCSL5FMGFortescue Metals Group6VASVanguard Australian Shares Index ETF7WBCWestpac8MQGMacquarie Group9ANZANZ10NABNational Australia Bank11OPYOpenpay12STWSPDR S&P/ASX 200 Fund13SZLSezzle14SWFSelfwealth15CBACommonwealth Bank16GEARBetashares Geared Australian Equity Fund17SPTSplitIt18BBUSU.S Equities Strong Bear Fund19VDHGVanguard Diversified High Growth Index ETF20A200BetaShares Australia 200 ETFIf we look beyond the top 20 stocks traded by value, and instead focus on order numbers, there was renewed interest in travel shares such as Qantas (ASX: QAN), Webjet (ASX: WEB) and Flight Centre (ASX: FLT). Combined, these three stocks were the focus of more than 3,000 trades.Other favourites among Selfwealth members included Electro Optic Systems (ASX: EOS), Etherstack (ASX: ESK) and Osprey Medical (ASX: OSP), which were all subject to high volatility throughout July and among the most popular trading stocks.

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