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.
Exposure to dominant companies
Focus on future trends
Rigorous, long-term approach
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.