For those who can’t wait till SpaceX goes public, here are three investment trusts to consider buying today. All are managed by Baillie Gifford, the Edinburgh-based investment firm that was invited to invest in SpaceX due to its patient, long-term backing of Tesla.

FTSE 100

Scottish Mortgage Investment Trust (LSE:SMT) manages a global growth portfolio of 101 stocks. It aims to “find exceptional growth companies, whether public or private, wherever they are in the world, and hold them over the long term“.

Here are the top five holdings, with their respective weightings:

• SpaceX: 19.3%
• TSMC: 5.7%
• ByteDance: 4.7%
• MercadoLibre: 4%
• Stripe: 3.9%

In the past 10 years, Scottish Mortgage has generated an excellent annualised return of 17%. SpaceX has contributed towards that because the trust first invested in the rocket maker back in 2018 when it was valued at around $31bn.

With Elon Musk seeking a valuation as high as $2trn, this holding is set to generate enormous returns. It’s another massive winner that Scottish Mortgage can put in the trophy cabinet, alongside Nvidia, Tesla, ASML, and Spotify.

I consider Scottish Mortgage to be the least risky of these three trusts due to its global portfolio. It holds established European blue chips like Ferrari, Hermes, and Swedish industrial giant Atlas Copco.

That said, it wouldn’t be immune to a global economic slowdown, especially as it holds lots of e-commerce stocks, including Amazon, Shopify, MercadoLibre, Temu owner PDD Holdings, and Sea Limited.

FTSE 250

Baillie Gifford US Growth Trust (LSE:USA) from the FTSE 250 is similar to Scottish Mortgage, but it’s entirely focused on American businesses. It also has a higher 50% limit on private company exposure (Scottish Mortgage is currently 30%).

Due to being less geographically diversified then, it’s arguably higher risk. If there was a US government debt crisis, for example, global investors could quickly dump American equities.

On the other hand, the US remains a breeding ground for the world’s most innovative companies. So I expect this trust to continue doing well long term (it’s up over 200% since launch in 2018).

The top five holdings are:

• SpaceX: 14.9%
• Stripe: 8.5%
• Amazon: 4.4%
• Nvidia: 4.3%
• Meta Platforms: 3.8%

A FTSE 250 newcomer

Finally, there’s Schiehallion Fund (LSE:MNTN), which recently joined the FTSE 250. It takes its name from the mountain in Scotland, which has historical scientific significance as it was used to calculate the Earth’s mass in 1774. 

The trust focuses on later-stage private growth companies, so I consider it higher risk. After all, unlisted valuations can be harder to get accurate while the firms are less established.

As such, Schiehallion can be incredibly volatile, especially when interest rates rise, as the share price chart shows.

The top five holdings are:

• Bending Spoons: 14.2%
• SpaceX: 12.8%
• ByteDance: 8.9%
• Databricks: 4.5%
• Stripe: 4.4%

Recent performance has been strong. In the 12 months to 31 January, the fund’s net asset value increased 32.6%. It could grow even more this year if the SpaceX IPO is successful.

Schiehallion says SpaceX “continues to exhibit arguably one of the strongest competitive advantages that we have ever seen“.

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The thing is – UK investors don’t have to wait for the IPO to invest in SpaceX. Believe it or not, it’s possible to get exposure to the company today through several London Stock Exchange-listed (LSE) vehicles.

A major investor in SpaceX

For a long time now, Scottish investment manager Baillie Gifford has been a major investor in SpaceX. It holds unlisted SpaceX shares in several of its investment trusts.

These investment trusts trade on the LSE just like regular shares. This means that by investing in these trusts, investors can gain exposure to SpaceX now, well before the IPO.

Baillie Gifford’s most well-known investment trust is Scottish Mortgage (LSE: SMT). This is a growth focused product that invests in disruptive companies (both listed and unlisted).

In this trust, SpaceX is the largest holding. At the end of March, it represented 19.3% of the portfolio.

I suspect the holding is a much larger percentage of the portfolio now though (maybe 25-30%). Because I don’t think Scottish Mortgage is valuing the company at the figure of $1.7trn to $2trn that is currently being discussed.

Let’s say for now that it represents 25% of the portfolio. If an investor was to put £10,000 into Scottish Mortgage, roughly £2,500 of that would be going into SpaceX.

The other £7,500 would be going into names such as Amazon, Taiwan Semi, ASML, and Nvidia. Overall, the investor would get access to lots of great growth companies.

It’s worth pointing out that the significant exposure to SpaceX does add risk here. If the space stock tanks, this trust could underperform.

I think it’s worth considering as part of a diversified portfolio though. I hold it in my own portfolio.

Another great option

A second Baillie Gifford investment trust worth highlighting is its US Growth Trust (LSE: USA). This is a smaller growth-focused product centred on US companies (listed and unlisted).

At the end of March, SpaceX was the largest holding at 14.9% of the portfolio (so maybe closer to 20% now). Other top holdings were Stripe (another unlisted company), Amazon, Nvidia, Meta, and Netflix.

This product is perhaps a little riskier than Scottish Mortgage as it’s focused on only one geographic market. Ultimately, it lacks the geographic diversification of the larger product.

I still think it’s worth a look though. After all, the US market has a brilliant track record when it comes to generating wealth for long-term investors.

We can see that in this product’s long-term performance. Since its inception, a little over eight years ago, its share price has more than tripled.

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It launched like a rocket, charging to almost 400p in the first two-and-a-bit years. Then the stock crashed 65% in the next two-and-a-bit years, falling all the way back to 135p. Ouch!

Since then though, the share price has more than doubled to 281p. So this has been some wild ride.

Despite the whipsawing volatility, I reckon this FTSE 250 stock’s worth considering for long-term investors. Here’s why.

Public and private markets

The £777m trust’s purpose is to give investors “access to the most exciting growth businesses in the US, whether listed on public markets or still privately held“.

It can allocate up to 50% of assets to unlisted businesses. The reason for doing this is important — US start-ups are choosing to stay private for longer, meaning that more and more value’s being created away from public markets.

Much of the most powerful growth now occurs before an IPO. Capturing that growth requires a structure that can invest patiently and flexibly.
Baillie Gifford US Growth Trust.

This strategy was recently validated in spectacular fashion when top holding SpaceX announced it was considering one of the largest IPOs in history. The trust’s made exceptional returns from rocket pioneer Elon Musk after investing in Space X soon after launch.

We’ve moved on from the age of the unicorns (privately-owned businesses worth over $1bn). We’re now onto ‘hectocorns’ — those worth at least $100bn!

Today, the trust’s invested in four hectocorns (SpaceX, Stripe, Databricks, and AI firm Anthropic). All of these high-growth firms could go public in the next couple of years, helping the trust crystallise some gains.

Underperformance

Last week, the investment company released its half-yearly report to 30 November. In this period, it delivered an 18% and 14.1% return on a share price and net asset value (NAV) basis respectively.

While that was solid, this compares with a total return of 18.6% for the S&P 500. And since launch, the trust’s share price and NAV have returned 181.1% and 207.9% respectively. This is also behind the blue-chip index (220.5%).

So the trust has underperformed. And anyone who invested five years ago would still be down around 18%, which is obviously disappointing for shareholders.

If the managers’ key stock picks don’t perform in future, investors could lose faith in the strategy, widening the NAV discount (it’s currently 7.5%).

Top 10 Holdings (November 2025)

Strongly positioned

Looking at the top holdings though, I’m bullish on the trust’s prospects. There are multiple world-class companies here in various growth industries, including space (SpaceX), AI (Nvidia, Meta, Cloudflare) and e-commerce (Amazon, Shopify and Stripe).

Importantly, a key failure from 2020-21 — not banking some profits from highly-valued shares — has been acknowledged. In the first half, it reduced holdings where there had been significant share price appreciation. These included Shopify, Roblox, Affirm and SpaceX.

With this renewed discipline on valuation and the high-quality portfolio, I think the trust’s in a far stronger position than it was a few years ago. As such, I reckon it’s worth considering as part of a diversified Stocks and Shares ISA.

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Take the following high-performing UK shares: Chemring Group (LSE:CHG), Baillie Gifford US Growth Trust (LSE:USA) and Lion Finance (LSE:BGEO). These mid-cap growth stocks have produced an average annual return of 14.8% during the past decade.

The question is, can these FTSE 250 heroes keep delivering stunning returns? I think they can, and believe they demand serious consideration right now.

Defence star

Global defence spending has rocketed since early 2022, lifting Chemring’s share price through the roof. This defence stock’s delivered an average yearly return of 11.9% on a 10-year horizon.

To put that into context, that’s more that double the broader FTSE 250’s corresponding return of 5.5%.

I wouldn’t bet against further stunning price gains as geopolitical tensions grow. Chemring manufactures countermeasures, sensors and explosives. And it’s thriving as Western nations rebuild their arsenals following the post-Cold War lull.

The company reported £488m worth of new orders in the first half of 2025, up 44% year on year at stable exchange rates. To meet future demand, it’s rapidly expanding production — by 2028, total explosives capacity will be 275% higher than it is today.

Despite supply chain strains and competitive threats, I’m expecting further share price growth.

Tech boom

The Baillie Gifford US Growth Trust has delivered an excellent 10.1% average annual return since late 2015. This is down to the stunning performance of the US stock market and — more specifically — the soaring tech sector.

In total, the investment trust holds 58 tech stocks including ‘Magnificent Seven’ star performers Nvidia, Meta and Amazon. It also has stakes in private companies like SpaceEx that would otherwise be off limits to private investors.

Today, more than 35% of Baillie Gifford’s trust is dedicated to tech stocks. This could cause it to underperform during economic downturns. More broadly speaking too, almost 90% of the entire product is dedicated to cyclical and sensitive industries.

Yet as we’ve seen, the trust’s strategy can also lead to supersized returns. I’m expecting it to keep delivering the goods as new tech sectors like artificial intelligence (AI), robotics and quantum computing take off.

Banking giant

Lion Finance has been one of the FTSE 250’s greatest investments since 2015. It’s delivered a 22.5% average annual return since then, more than four times greater than the index average.

The stock traded under the Bank of Georgia name until earlier this year. This reflects its emerging-market-focus which has fuelled spectacular profits (and share price) growth over the last decade. It provides banking services in Georgia, and last year it expanded into Armenia to boost future growth.

Demand for financial services is rocketing across these regions. In the second quarter, Lion Finance’s profit before one-off items rocketed 19.4% year on year, supported by a 22.5% rise in its loan book.

Lion Finance faces significant competition from Georgian rival TBC Bank. Even so, a solid economic backdrop suggests it could keep generating standout returns.

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Here’s one FTSE 250 growth trust that I think’s worth taking a closer look at right now.

US growth stocks

Baillie Gifford US Growth Trust (LSE:USA) does pretty much what its name says. It aims for out-and-out growth through a portfolio of US-listed stocks. So it’s no surprise to see high-quality names like Amazon, Shopify, Nvidia, Netflix and Meta near the top of the portfolio’s stock list.

The trust also gives investors exposure to unlisted growth firms like rocket maker SpaceX and digital payments giant Stripe. In fact, this pair make up two of the top three holdings, worth more than 11% of the portfolio.

However, to separate it from big brother Scottish Mortgage in the FTSE 100, US Growth has decent-sized positions in smaller companies like software firm Datadog and sports betting company DraftKings.

Its unlisted portfolio also has start-ups not found in Scottish Mortgage. The managers believe some of these disruptors could become the stock market giants of tomorrow.

But are we in an AI bubble?

Of course, one key risk is if we’re in an AI bubble today. Even Alphabet boss Sundar Pichai has just been telling the BBC that there’s an element of “irrationality” in the ongoing AI investment boom.

Baillie Gifford isn’t blind to this risk, saying “there is a non‑zero chance that we’re in an exuberant phase of AI infrastructure build‑out, much like railroads, PCs, or the early internet“.

However, the trust has been thinking a lot about this, arguing that stock selectivity is “paramount“. It points out that despite Nvidia’s profits exploding, its price-to-earnings ratio is only slightly above its 2022 lows and materially below its five-year average.

That’s a far cry from Cisco in the dotcom bubble, when a surging share price pushed valuations to extremes before everything collapsed.

Also, while still believing that efficiency gains from AI are being underappreciated by investors, the trust’s managers have also been investing in non-AI areas like healthcare and industrials.

Improving performance

The trust had a sticky patch in 2022 when interest rates shot up. This put pressure on the valuations of growth shares.

However, the environment seems more settled now, with interest rates likely to eventually settle into the 2%-3% range. As such, performance has improved. In the 12 months to 30 May, the trust returned 24.5%, easily beating the total return of 7.2% for the S&P 500 index.

Discount

At 264p, Baillie Gifford US Growth Trust is trading at an 8.5% discount to its underlying net asset value per share. Essentially, this means investors can buy into the portfolio for less than it’s perceived to be worth (though unlisted assets do add a bit of complexity to the valuation process).

Looking to the long term, I think this trust is perfectly positioned to benefit as the tech revolution deepens. And investors might therefore want to consider it for inclusion in a diversified portfolio.

After all, even while warning about risks, Alphabet’s boss also says AI is “the most profound technology” humankind is working on.

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Sure, stock markets can be volatile at times. But over the long term the direction is up, as the FTSE 100, S&P 500 and Nikkei‘s recent record highs show. Patient investors can use this to build an enormous nest egg for later in.

Let’s look at how investing in the stock market can be such a valuable tool to building retirement wealth. I’ll then discuss a top growth share I’m considering adding to my portfolio right now.

Building wealth

The ISA’s one of the most popular products in the UK for saving and for investing. Over time, the difference generated between the Cash ISA and Stocks and Shares ISA can be enormous, as data from Shepherds Friendly shows.

It calculated the return a £293 monthly investment would have generated over time. Here’s what it found:

Reducing risk

It’s my opinion that these hypothetical returns on the Stocks and Shares ISA may actually be looking a little light.

This is because the average annual return on stock market investing ranges 8% and 10%. That’s far higher than the 5% Shepherds Friendly has used.

Still, you can see the enormous shortfall that cash savers can experience compared to stock market investors. Due to the impact of compounding — where your interest earns interest over time — those saving £293 each month would miss out on even larger riches.

On the plus side, the Cash ISA provides a guaranteed return, making it much lower risk. However, share investors can substantially limit the risk they face with a diversified portfolio of growth and dividend shares spanning sectors and regions.

A growth stock on my radar

The Baillie Gifford US Growth Trust (LSE:USA) is one company I’m currently considering for my portfolio. As its name implies, it focuses on growth stocks on the other side of The Pond. It’s delivered a monster 13% average annual return over the last year.

That’s more than double the return for the broader FTSE 250.

The trust’s focus on Wall Street shares leaves it vulnerable to a fall in the US stock market. But other than that it’s pretty well diversified. The 58 holdings it has span multinational companies in the information technology, telecoms, consumer goods and healthcare sectors, among others.

On top of this, the investment trust comprises both public and private companies. So it’s been able to harness the enormous growth potential of hard-to-reach companies like Space X alongside popular growth shares including Nvidia and Amazon.

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The problem is that many tech funds are filled with the same Magnificent 7 stocks, making them near-identical. Why pay extra fees for ‘active’ management when a low-cost index tracker gives you virtually the same exposure and likely performance? I don’t see the point.

Something different

In contrast, I think Baillie Gifford US Growth Trust (LSE:USA) does offer something different. For a start, it has more deviation from the Magnificent 7-dominated benchmarks by not owning Alphabet, Apple, or Microsoft. It has Tesla, but it’s now not much more than 1% of assets.

The main edge I see here is that the trust can invest in private markets. And it’s likely there where some massive companies will emerge in future across various fields of applied AI.

Baillie Gifford US Growth Trust sees a lot of opportunity here, and it hopes to get in near the ground-floor level with some of these start-ups.

Reshaping Hollywood?

We are in a new technological paradigm. Things are getting weird, quickly.

Baillie Gifford US Growth Trust

One potentially very disruptive private company is Runway AI, which uses generative AI to make and edit videos, images, and special effects. Users can type prompts to generate clips, turn stills into animations, and add effects like fire or flooding.

Both Netflix and Lionsgate Studios are using Runway’s platform, as well as ad agencies, brands, artists, freelance creators, and podcasters. Baillie Gifford says a major retailer has used it to visualise 3D models of furniture listed on its website.

Runway recently secured $308m in new funding from investors including Baillie Gifford. The trust says: “Our investment hypothesis is that by 2030, creators will be able to use Runway to make amazing sequences for movies, TV shows and adverts for a fraction of the cost and time required today.”

Things to bear in mind

Of course, generative AI start-ups like this could one day face copyright lawsuits, because we don’t now what material they used to train their models on. So there’s a risk some go bankrupt, while another Hollywood backlash could erupt if AI threatens jobs in the industry.

Also, there’s no guarantee that the trust will back the winning horses. OpenAI seems to have slipped through the net, with the ChatGPT maker now valued at north of $350bn, according to some reports.

Given the firm’s focus on disruptive growth stocks, it could underperform if these suddenly fall out of favour. This happened spectacularly in 2022, as we can see below.

A nice mix of AI shares

On balance though, I think this is an excellent trust to consider for long-term AI growth potential. It has a nice blend of profitable, dominant tech firms like Meta, Nvidia, and Amazon, as well as exciting unlisted AI firms like Databricks and Runway AI.

Sandwiched between the giants and the start-ups are stocks like cloud-based data storage firm Snowflake, whose growth is accelerating due to AI. And Netflix, whose profit margins could improve over time if it can use generative AI to make some content at far lower cost.

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A sum of the parts

I’m referring to the Baillie Gifford US Growth Trust (LSE:USA). The investment trust has USA as the ticker, which suitably fits the mandate it has of buying US stocks for long-term capital growth. The trust managers have the remit of purchasing stock in both public and private companies, giving it a unique twist.

Over the past year, the stock is up 35%. Given that the share price movements should closely mirror the net asset value of the portfolio, the main driver here is the performance of the stocks held in the trust. It has performed very well due to its exposure to unlisted private companies. For example, one of the largest holdings is SpaceX, plus newer private investments in AI and tech like Rippling and Runway AI.

Aside from this, tech exposure has outperformed this year. So holdings in Nvidia, Meta and Amazon have helped to push the trust NAV higher. Let’s also not forget the focus of the managers on growth stocks, versus other areas. In the past year, investor sentiment has swung back somewhat toward growth, especially in sectors with strong momentum. This has helped trusts like this, which are heavily growth-oriented.

The next 12 months

The outperformance versus the index will please investors who already own it. However, the question for those who don’t is whether the performance can continue over the coming year and beyond.

Concerns that this might not be possible come from several areas. As the trust holds many high-growth (and some as-yet-unprofitable) companies, performance can swing wildly. Valuing the private holdings can also be tricky. Plus there’s a concentration risk. What I mean by this is that the gains have come from a few big winners. If those names stumble, gains could reverse fast.

On the other hand, the situation in the US doesn’t look that bad. The Federal Reserve committee is likely to start cutting interest rates, which should act to boost the stock market in general. This is particularly beneficial for growth stocks, as they typically have high levels of debt, which becomes more affordable with lower interest rates.

On key themes like AI, I don’t think we’re at the end of the road at all. Adoption rates and innovation are still rapidly increasing. This should give plenty of room for AI leaders to see share price appreciation as investors want to get more exposure to this area.

When I balance things up, even though I think another 35% gain in the coming year is a bit optimistic, I do think the trust could outperform the FTSE 250. Therefore, I think it’s a stock for investors to consider at the moment.

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On the other hand, it’s quite unique because it has the ability to invest in private companies. Indeed, two of its top three holdings aren’t listed on the stock market. Namely SpaceX and internet payments giant Stripe.

Today (12 August), we found out another thing that makes it somewhat different. It has been massively outperforming the S&P 500 index recently, unlike many other investment funds.

Let’s take a closer look at this FTSE 250 growth trust.

Cracking outperformance

The £750m trust invests in high-growth businesses and then aims “to hold on to these for long periods of time, in order to produce long-term capital growth.” 

We got the annual results today, covering the year to 31 May, and they were fantastic. The share price and net asset value (NAV) returned 24.5% and 22.1%, respectively. This compared very favourably with a total return of 7.2% for the S&P 500 (in sterling terms).

The standout performers during the period were language learning platform Duolingo (+156%), web security firm Cloudflare (+132%), and Netflix (+77.6%). Rocket pioneer SpaceX (+67%) and e-commerce enabler Shopify (+71%) also did the business.

The biggest detractor by far was Moderna (-82.2%), which has also been a painful one for me as a shareholder.

Thankfully though, as is often the way, the big winners can more than make up for the losers. Or as Warren Buffett once put it: “The weeds wither away in significance as the flowers bloom. Over time, it takes just a few winners to work wonders.”

Recently, there have been far more flowers than weeds for Baillie Gifford US Growth Trust.

Discount narrowing

Also encouraging was that the NAV discount narrowed from 11.2% to 9.4% by year-end. It bought back 16m shares for £35.5m (5.4% of issued share capital).

As I write, the discount is down to just 7%. However, there’s a risk this could widen again, especially if the global economy tanks when tariffs finally work their way through the system.

Solid AI picks

This period of outperformance means that the trust has matched the S&P 500 on a NAV basis (+170%) since inception in March 2018.

While that might not sound overly impressive — after all, it’s a fund’s job to beat the index over the long term — this didn’t look likely just two years ago.

Performance was boosted by some astute artificial intelligence (AI) picks. Meta has been using AI to improve ad targeting and content recommendations, boosting engagement and advertiser spend. And Shopify has rolled out AI-powered tools like Sidekick to help merchants automate tasks and write product descriptions.

The trust added eight new holdings, including three unlisted ones (Rippling, Runway AI, and Cosm). I’ve never heard of any of these, but Runway AI sounds promising. It’s an AI-powered video creation platform that helps everyone from solo creators to major studios quickly produce high-quality content.

Of course, AI is becoming so disruptive that it might get harder in future to successfully pick the ultimate big winners (this is another risk).

However, the portfolio looks in excellent shape to me. Pair this with the 7% discount, and I think the shares are worth considering today at 266p each.

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Arguably the best way to target dividend income is inside a Stocks and Shares ISA. This account shields any returns from taxes, allowing wealth to build faster.

Over the past 10 years, a Stocks and Shares ISA tracking the performance of the FTSE 100 index has easily outperformed a Cash ISA. The average return is around 9% per year and slightly higher with the S&P 500 thrown into the mix.

In contrast, cash has returned around 2% to 2.5%, even including higher interest rates since 2022. This suggests savers would have lost real purchasing power over this period, due to inflation.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

Aiming for a £1m portfolio

The annual contribution limit for an ISA is £20,000. This means it’s going to take time to build up to the figure mentioned in the headline.

For example, let’s say a portfolio yields 6% in future. To make a monthly income of £5,000, the Stocks and Shares ISA will need to be worth £1m. 

That’s obviously a large sum, and reaching it might sound like a pipe dream, especially when the annual ISA limit is ‘only’ £20,000. 

However, were an investor to achieve an average 10% return, that seven-figure sum would be reached in just under 23 years. And the great news is that would be from investing £12,000 per year (or £1,000 a month) rather than £20,000. 

But if the full ISA allowance was regularly invested, £1m would be achieved inside 19 years! And both of these examples involve someone starting from scratch. 

Now, I should mention that a 10% return isn’t guaranteed, while dividends can be suspended if a firm runs into trouble.

However, the potential long-term rewards can be significant.

Ready-made growth portfolio

One approach that could be used to aim for a 10% return is by investing in investment trusts. These are publicly listed companies that buy a diversified portfolio of assets, typically shares.

The Baillie Gifford US Growth Trust (LSE: USA) is one that I rate highly. Among the trust’s top holdings is Meta Platforms, whose earnings have just blown past Wall Steet’s expectations. AI is turbocharging ad performance across Facebook and Instagram, delivering efficiency and greater returns.

Meanwhile, gaming platform Roblox has done something similar. As I write today (31 July), shares of Meta and Roblox are up 12% and 17%, respectively.

It looks like the trust’s managers have an eye for great stock picks (including Nvidia).

One risk here though is that the portfolio is heavily tilted to US tech stocks. Were these to fall from grace, the trust would likely underperform. There’s also no geographic diversification (though most US tech firms are global nowadays).

The trust is currently trading at a 7.5% discount to net asset value, which I find attractive. I reckon it’s worth considering, especially as a way to gain portfolio exposure to the deepening AI revolution.

Once the ISA reaches the magic £1m mark, it would then be possible to focus entirely on dividends shares. A 6%-yielding portfolio would then throw off the equivalent of £5,000 a month in tax-free passive income.

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