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Back US winners with Baillie Gifford American

Back American winners with Baillie Gifford American
Back US winners with Baillie Gifford American

US equities have continued to storm ahead of other markets this year, largely due to the presence of big technology names included in US equity indices. This sector has been a major beneficiary of the global lockdown, with people increasingly using technology for professional and personal interactions. However, active US equity funds have for a number of years found it difficult to outperform the market, partly because it's difficult to take overweight positions in some of the largest names in the S&P 500 index. So some investors have looked to back these winners by holding a tracker fund.

IC TIP: Buy at 1199p
Tip style
Growth
Risk rating
High
Timescale
Long Term
Bull points

Exposure to dominant companies

Focus on future trends

Rigorous, long-term approach

Strong performance

Bear points

Potential volatility

However, there are active US equity funds that have succeeded in outperforming indices such as the S&P 500 in recent years. These include Baillie Gifford American (GB0006061963), which seeks to outperform this index in sterling terms by at least 1.5 per cent a year over rolling five-year periods.

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