Baillie Gifford has launched its first actively managed ETF suite in the U.S., marking a significant expansion of the firm’s presence in one of the world’s fastest-growing ETF markets.
The Edinburgh-based investment manager said the new lineup is designed to provide investors with a more flexible and tax-efficient way to access its long-term, high-conviction growth investing philosophy.
The debut suite consists of four actively managed equity ETFs, including two strategies converted from existing mutual funds. The launch comes as active ETFs continue to attract strong investor interest, with asset managers increasingly seeking to bring established mutual fund strategies into the ETF wrapper.
Key Features
- Emerging Markets ETF (NASDAQ:BGEG) – Actively managed strategy focused on long-term growth opportunities across emerging economies. Carries an expense ratio of 0.79%. It tracks the MSCI Emerging Markets Index.
- International Concentrated Growth ETF (NASDAQ:BGCG) – Converted from an existing mutual fund and built around a concentrated portfolio of international growth companies. The fund carries a 0.79% expense ratio and tracks the MSCI ACWI ex US Index.
- International Alpha ETF (NASDAQ:BGIA) – Actively managed international equity strategy seeking to identify high-growth opportunities. The expense ratio tied to the fund is 0.59%. This ETF also follows the MSCI ACWI ex US Index.
- Long Term Global Growth ETF (NASDAQ:BGGG) – Converted from an existing mutual fund and designed to capture long-term global growth trends. The fund carries a 0.70% expense ratio, and tracks the MSCI ACWI Index.
Baillie Gifford oversees approximately $260 billion in assets globally. It also manages more than $100 billion in U.S. client assets across public and private equity strategies, including international, emerging markets, and global growth mandates. U.S. assets account for roughly 40% of the firm’s total client assets, according to the company’s press release.
Joe Stellato, Head of U.S. Wealth at Baillie Gifford, said the firm sees a gap in the market for differentiated growth-focused active ETFs, particularly in international and emerging market equities. Only 24 ETFs currently offer active exposure in those segments despite thousands of ETFs trading in the U.S. market.
The move represents another milestone in Baillie Gifford’s broader U.S. expansion strategy as it seeks to deepen relationships with wealth management clients and broaden access to its investment capabilities through the ETF structure.
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