Baillie Gifford launches four active global growth ETFs

Baillie Gifford, the Edinburgh-based investment manager, launched four actively managed global growth exchange-traded funds in the U.S. on June 3. The new ETFs trade under the tickers BGGG, BGCG, BGEG and BGIA.

Two of the funds converted from existing mutual funds. The Baillie Gifford Long Term Global Growth ETF (BGGG) and the Baillie Gifford International Concentrated Growth ETF (BGCG) moved from mutual‑fund wrappers into ETF structures. The Baillie Gifford Emerging Markets ETF (BGEG) and the Baillie Gifford International Alpha ETF (BGIA) debuted as new ETF listings.

The Long Term Global Growth ETF (BGGG) targets a portfolio of roughly 30 to 40 growth-oriented companies across developed and developing markets. Baillie Gifford describes the strategy as applying a bottom-up stock selection process it has used for nearly two decades and focusing on companies with strong fundamentals and long-term growth profiles.

The International Concentrated Growth ETF (BGCG) takes a narrower approach, holding about 20 to 35 companies. The strategy follows bottom-up research and a buy-and-hold approach intended to capture sustained growth by maintaining positions for extended periods.

The Emerging Markets ETF (BGEG) seeks diversified exposure to companies listed in emerging market economies, drawing on the firm’s international research capabilities. The International Alpha ETF (BGIA) aims to generate diversified growth opportunities by investing across a wide range of international businesses selected through active, bottom-up research.

Baillie Gifford cited investor interest in active management and international allocations as the rationale for the launches, noting limited long-term growth offerings in ETF form for emerging and international equities. Joe Stellato, head of U.S. wealth at Baillie Gifford, commented: ‘Active ETFs are growing rapidly, but genuinely differentiated, long-term growth offerings remain scarce in an ETF wrapper, particularly in emerging markets and international equities, where there are only 24 out of thousands of ETFs. That’s why now is the right time to bring our growth investment approach to ETFs. We see a clear need to fill that gap while continuing to build our U.S. presence and demonstrate our commitment to being a true partner to our wealth clients.’

The new ETFs provide U.S. investors direct ETF access to Baillie Gifford’s growth and international equity strategies. Two of the strategies moved from mutual funds to ETF wrappers, a route other managers have used to offer active strategies in ETF form.