Active by design: four ETFs built for the long term

Please consider a Fund’s objectives, risks (including risk of loss), charges and expenses before investing. For these, see the prospectus and summary prospectus at bailliegifford.com/etfs. Please read these before investing. Securities are offered through Baillie Gifford Funds Services LLC, an affiliate of Baillie Gifford Overseas Limited and a member of FINRA.

Baillie Gifford has launched four actively managed ETFs, spanning emerging markets, international and global growth opportunities:

• Emerging Markets ETF (BGEG)
• International Concentrated Growth ETF (BGCG)
• International Alpha ETF (BGIA)
• Long-Term Global Growth ETF (BGGG)

Each fund draws from our established research platform and is built on our core approach to investing:

• Active, bottom-up research drives security selection.
• Patience allows companies the time to realize transformational potential.
• Concentrated conviction focuses portfolios on our best ideas.

Why now?

Despite the abundance of ETF options within broader asset classes, the selection becomes notably limited when seeking an active, growth-focused, bottom-up fundamental equity portfolio with a long-term investment horizon. Baillie Gifford’s discipline in this philosophy is tailor made to fit this particular niche.

Emerging Markets Growth ETF (BGEG)

Baillie Gifford has been investing in emerging markets since 1994 – Over more than three decades, we have invested through financial crises, commodity cycles, geopolitical shocks and periods when investors repeatedly questioned the asset class. Our philosophy has remained consistent throughout: long-term emerging market equity returns are ultimately driven by hard currency earnings growth. The opportunity lies in identifying those businesses before the market fully appreciates them.

Emerging markets are increasingly where the next phase of global growth is being built – The world’s AI infrastructure, electrification supply chains and critical materials production are disproportionately concentrated across emerging economies. Taiwan and South Korea produce the majority of the world’s advanced semiconductor and memory chips, while countries such as Chile, Indonesia and China sit at the center of the commodities required to power the modern economy.

We believe emerging markets reward patience far more than prediction – While many investors focus on short-term macro narratives, our approach is grounded in a five-year investment horizon and a willingness to back exceptional businesses through periods of volatility. We focus on three areas where markets often misprice growth: duration, where competitive advantages endure longer than expected; pace, where adoption and scaling happen faster than anticipated; and surprise, where earnings potential improves materially versus consensus expectations.

Research sits at the center of our process – Emerging markets remain under-covered and inefficient, with many companies followed by very few analysts and large parts of the universe lacking meaningful long-term research coverage. We therefore build conviction through extensive fundamental work: meeting companies repeatedly, traveling extensively and speaking with suppliers, customers, competitors, academics and industry experts to develop differentiated insight.

EM is under-covered and under-resourced

We are willing to look different – Some of our biggest successes have come from holding exceptional companies in meaningful size and for very long periods of time, whether TSMC, MercadoLibre or other businesses that initially appeared too controversial, too misunderstood or simply too early for wider market acceptance. Equally, we are willing to avoid fashionable areas where valuations or fundamentals do not justify enthusiasm. In an asset class defined by wide dispersion and inefficiency, we believe differentiated portfolios matter.

ETF accessibility and flexibility combined with an active research-driven approach – BGEG will typically hold 60–100 companies, reflecting our highest conviction ideas across a broad opportunity set, while we intend low turnover to reflect our willingness to hold exceptional businesses patiently over long periods of time.

Meet the Emerging Markets Team

International Concentrated Growth ETF (BGCG)

The index is not the world – The US represents roughly a quarter of global GDP, yet it accounts for nearly 70 percent of global equity indices (illustrated below), leaving many investors far more concentrated in US equities than in the global economy itself. International investing is not simply about diversification. It is about looking where the market may not yet be paying enough attention.

Outliers drive outcomes – Equity markets are highly skewed. In one long-run study, less than 1 percent of non-US companies created more than half of the net wealth generated across the whole non-US universe. This is why active stock selection and position sizing matter.

Managers making real decisions – In a world where most international equity ETFs track an index, our active approach is designed for investors who want a more intentional way  to access international growth. We are not trying to own everything. We are trying to identify the rare companies that could become much larger over the next five to ten years, and to own them  in meaningful size when conviction is high.

Few genuine high-growth choices – There are not many active international large cap equity ETFs in existence, and there are even fewer genuinely high-growth options among them. BGCG is designed to stand apart: active, concentrated, long-term and focused on exceptional companies rather than benchmark similarity.

Highest-conviction ideas are from outside the US – Our portfolio is built around finding exceptional businesses early and sticking with them as they grow. We look for companies with large and expanding opportunities, durable competitive advantages, ambitious leadership and the potential to compound value over many years.

Concentrated on purpose – Outlier companies are rare, and owning too many lower-conviction holdings can dilute the impact of the companies that matter most. The portfolio will aim to hold fewer than 30 companies, and  we expect to invest around half of the ETF in  the top 10 positions, reflecting high conviction  in our best ideas.

Long term by design – The most rewarding companies rarely travel in a straight line. Volatility is often part of the journey, not proof that the journey is over. Baillie Gifford portfolios have consistently low turnover, often with an average holding period of around five years. We are not trying to trade the news. We think in years, not quarters, and are willing to be patient when the long-term thesis remains intact.

Meet the International Concentrated Growth Team

International Alpha ETF (BGIA)

We find growth where others don’t look – Share prices follow earnings growth over time. This simple insight is extremely hard for the market to exploit. It requires patience, because markets are brilliant at pricing next quarter’s earnings and terrible at pricing the next decade’s. Evidence shows that the companies growing earnings the fastest also deliver the highest returns to investors over five years and beyond. This is why we intend to hold our winners for a decade or more, while the market’s average holding period is only one year.

A portfolio built on conviction, not the index – With a high active share – a measure of how different a portfolio is from its benchmark – and around 80 companies represented, BGIA is meaningfully different from the index, but broad enough to balance upside with diversification.

The portfolio spans the full breadth of international growth styles and business models, from MercadoLibre, Latin America’s leading ecommerce and fintech platform, to TSMC, the dominant player in semiconductors globally, from Deutsche Boerse, Europe’s largest derivatives exchange and a key provider of market infrastructure, to CATL, the world’s top battery and energy storage solution manufacturer. Different countries, different cycles, different growth drivers, all contributing to overall  portfolio performance.

Going where future growth is – With younger, faster-growing populations, rapid economic development and accelerating innovation, emerging markets – from Brazil to India to Indonesia – are poised to drive global growth in the next decade. The International Alpha strategy has typically maintained a meaningfully higher allocation to emerging markets than its peers, finding conviction  through two decades of experience investing in the region. Today, emerging markets is our largest regional overweight – we invest more there than the index.

Our distinctive process harnesses diversity – International Alpha is managed by a dedicated team with an average tenure of 16 years at  Baillie Gifford: long enough to have seen multiple cycles, built deep company knowledge, and developed genuine views about how international markets reward patient investors. Building in-person relationships with company management over years is key to developing our insights. This experience shapes how we work: debate is encouraged, outside views are welcome, and accountability is shared. The same philosophy, applied consistently for over two decades, guides our decisions.

One of the few of its kind – The active international ETF landscape is sparse. Most international ETFs are passive – they own the index, including the companies we think are going nowhere. The few active options that exist tend to hug the benchmark. BGIA offers something different: a high-conviction, long-term growth portfolio managed by an accomplished investment team.

Meet the International Alpha Team

Long Term Global Growth ETF (BGGG)

Transformational growth is global – The next generation of exceptional businesses will not emerge from one country or sector. They can come from anywhere. Only a truly global approach gives the best chance of finding them.

Most companies don’t matter – Over the long run, a very small minority of companies drive the bulk of equity wealth creation. Equity investing is not about owning everything. It’s about finding the exceptional  few that can grow to many multiples of their current size.

The index is anchored to the past – Broad global indices offer diversification, but they are weighted toward today’s largest companies, not tomorrow’s most consequential ones. For investors who believe the next decade’s returns will be shaped by a different set of businesses than the last, a different kind of equity exposure is required.

Yes, there’s choice, but it’s mostly “the market” – There’s never been more choice in the global equity ETF market, yet most options are designed to deliver “the market,” with only a handful of Active ETFs seeking to outperform it.

We’re free to go anywhere – BGGG is global, unconstrained and benchmark agnostic. We can back exceptional growth wherever it appears, unconstrained by geography, sector, or index weights. That flexibility is vital when the most exciting opportunities often emerge in unexpected places.

We embrace asymmetry – Equity returns are not evenly distributed. A small number of outliers can drive a disproportionate share of long-term wealth creation. Our process is designed to maximize exposure to the outliers capable of driving disproportionate long-term wealth creation – and to hold them in size, through inevitable periods of volatility.

Long-term mindset – Stock prices are unpredictable in the short term, but over time they reflect a company’s true earnings power. When we find a company that can materially grow its profits, we invest with the patience needed for that thesis to play out. Our typical holding period is close to a decade (illustrated below), while others hold for months.

A portfolio built for change – Transformative growth companies benefit from dramatic change, not from the status quo.  They harness the power of new technologies rather than being destroyed by them. We look for adaptable companies with visionary leadership, strong cultures and enduring competitive advantages. In a world of accelerating change,  we believe those qualities matter more than ever.

Meet the Long Term Global Growth Team

Why Baillie Gifford?

Risk factors

The Funds are distributed by Baillie Gifford Funds Services LLC. Baillie Gifford Funds Services LLC is registered as a broker-dealer with the SEC, a member of FINRA and is an affiliate of Baillie Gifford Overseas Limited. All information is sourced from Baillie Gifford & Co unless otherwise stated.

As with all ETFs, the value of an investment in the Fund could decline, so you could lose money.

Investing in Exchange Traded Funds (ETFs) pose additional risks including that shares trade on an exchange and may trade at a price greater than the NAV (a premium) or less than the NAV (a discount). Shares bought at a premium may have a greater risk of loss than those bought at a discount. Shares are bought and sold at market price (not NAV) and are not individually redeemable. Shares may only be redeemed directly from the Fund in Creation Units by Authorized Participants (APs). Where an ETF relies on a small number of APs, there is a risk if these APs exit the business or are unable to create or redeem shares. In this situation, Fund shares are more likely to trade at a premium or discount to NAV and could face trading halts. Although shares are listed for trading on an exchange, there can be no assurance that an active trading market for the shares will develop or be maintained. Investors buying or selling shares in the secondary market may also incur bid-ask spreads, which represent the difference between the highest price a buyer is willing to pay and the lowest price a seller is willing to accept for shares and may widen during periods of market volatility or reduced liquidity. Brokerage commissions may apply and will reduce returns. The market price of shares may fluctuate in response to changes in the value of the Fund’s holdings, supply and demand for shares and other market factors. For more information about these and other risks of an investment in the Fund see “Principal Risks” in the prospectus.

There can be no assurance that a Fund will achieve its objective.

This communication was produced and approved in May 2026 and has not been updated subsequently. It represents views held at the time of writing and may not reflect current thinking.

This communication contains information on investments which does not constitute independent research. Accordingly, it is not subject to the protections afforded to independent research and Baillie Gifford and its staff may have dealt in the investments concerned.

The images used in this communication are for illustrative purposes only.

Baillie Gifford holds the following stocks: TSMC, MercadoLibre, Deutsche Boerse.

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