International Alpha ETF (BGIA)

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.

Why international?

Because that’s where the growth is – The index is not the world. The US accounts for roughly a quarter of global GDP but dominates around 70 percent of global equity indices (the benchmark many funds track). That’s a stark imbalance between where profits are generated and how capital is allocated (illustrated below). Look beyond the index, and the opportunity is vast.

The next generation of outliers is global – As many as 70 percent of the world’s fastest-growing listed companies are domiciled outside the US. The great compounders of the next decade are as likely to come from Taipei, Copenhagen, or São Paulo as from Silicon Valley.

A broader opportunity set – International markets have exposure to a vast range of cycles, sectors, and business models. South Korean memory chips powering AI; fintech reshaping banking across Latin America; electric vehicle (EV) batteries from China; luxury goods from France; factory automation in Japan; subsea cables connecting continents to renewable energy. Each performs at different stages of the economic cycle, building resilience into the portfolio.

AI is global infrastructure, not a US monopoly – The critical bottlenecks of the AI economy include advanced lithography (ASML), semiconductor foundry (TSMC), memory (Samsung Electronics), battery storage (CATL), chip design (MediaTek). Each is dominated by international companies. Owning the future increasingly means looking beyond the US.

The balance is now shifting toward International – The investing landscape has changed. The 2010s rewarded a narrow set of US-centric, capital-light platforms – businesses that could grow without needing heavy investment in physical assets – in a world of low rates, cheap energy, and dollar dominance. That world is giving way to a new regime that favors international markets.

The dollar’s dominance is fading – The US dollar’s share of global foreign exchange reserves has fallen steadily over the past two decades, from over 70 percent to under 60 percent. Bilateral trade deals increasingly bypass the dollar entirely. For a generation, dollar dominance pulled global capital into US assets and inflated US valuations. As that gravitational pull weakens, capital is beginning to flow back toward the rest of the world.

The world is growing in regional blocs – The old global order is being replaced by something more complex and more exciting. Intra-emerging-market trade is growing faster than global trade. China’s fastest-growing bilateral trading partner is Africa. Meanwhile, Europe is undergoing its own transformation. Germany’s historic suspension of the debt brake is unlocking hundreds of billions in infrastructure and defense investment. The EU is building energy independence, re-arming, and investing in industrial sovereignty at a scale not seen since the post-war reconstruction. We are witnessing the beginning of a long period of elevated infrastructure investment that will power the economy for the next decade.

Capital intensity is rising, benefiting international companies – Businesses need to invest more in physical assets such as mines, factories and infrastructure. The energy transition, electrification, and the reshoring of critical supply chains all run on these inputs: copper, lithium, oil, gas, and the infrastructure to move and store energy at scale.

The countries that hold those resources are international. Petrobras (Brazil) is one of the world’s most efficient deepwater oil producers, funding the energy needs of a continent. Lundin Mining (Canada/Sweden) and Zijin Mining (China) are among the world’s leading copper and gold producers, supplying the raw materials without which no grid, no EV, and no data center gets built. CATL (China) manufactures nearly 40 percent of the world’s EV batteries, sitting at the center of the global transition to electric transport.

The new resource economy is not capital-light, and it is not centered on the US. It is anchored in the countries that hold the ground, the geology, and the grid.

Quality growth is trading at value prices – High-quality, fast-growing companies are available at valuations more typical of slower growing, lower quality businesses. International markets have experienced one of the sharpest shifts in investment style in decades, with so-called “value” stocks – often cheaper, more mature businesses – dominating returns. The result is that exceptional quality growth businesses outside the US now trade at valuations typically reserved for slow-growth, low-return companies.

World-class businesses with strong brands, double-digit earnings growth, dominant competitive positions, and strong balance sheets can be bought at the same multiples as commodity producers and regional banks. Quality and growth have rarely been this cheap relative to value in international markets, and that disconnect has historically been one of the best entry points for long-term investors.

Structural tailwinds and a valuation reset don’t often happen at the same time. For investors willing to look beyond the US, this is a rare moment. BGIA is built to capture exactly this kind of opportunity.

Why Baillie Gifford 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, the BGIA portfolio 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.

Why Baillie Gifford?

Meet the International Alpha Team

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.

The most significant risks of an investment in the Baillie Gifford International Alpha ETF are Investment Style Risk, Growth Stock Risk, Long-Term Investment Strategy Risk and Non-U.S. Investment Risk. The Fund is managed on a bottom up basis and stock selection is likely to be the main driver of investment returns. Returns are unlikely to track the movements of the benchmark. The prices of growth stocks can be based largely on expectations of future earnings and can decline significantly in reaction to negative news. The Fund is managed on a long-term outlook, meaning that the Fund managers look for investments that they think will make returns over a number of years, rather than over shorter time periods. Non-U.S. securities are subject to additional risks, including less liquidity, increased volatility, less transparency, withholding or other taxes and increased vulnerability to adverse changes in local and global economic conditions. There can be less regulation and possible fluctuation in value due to adverse political conditions. Other Fund risks include: Asia Risk, China Risk, Conflicts of Interest Risk, Currency Risk, Developed Markets Risk, Emerging Markets Risk, Equity Securities Risk, ESG Risk, ETF Structure Risk, Focused Investment Risk, Frontier Markets Risk, Geographic Focus Risk, Government and Regulatory Risk, Information Technology Risk, IPO Risk, Large-Capitialization Securities Risk, Liquidity Risk, Market Disruption and Geopolitical Risk, Market Risk, New and Smaller-Sized ETF Risk, Periodic Rebalancing Risk, Risk Model Risk, Service Provider Risk, Settlement Risk, Small-and Medium-Capitalization Securities Risk and Valuation Risk.

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 “Additional information about principal strategies and 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: ASML, TSMC, Samsung Electronics, CATL, MediaTek, Petrobras, Lundin Mining, Zijin Mining, Deutsche Boerse.

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