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By no means thoughts the tech stars of the US inventory market. The FTSE 250 can be an important place to search out wealth-boosting development shares, in my view.
Take the next high-performing UK shares: Chemring Group (LSE:CHG), Baillie Gifford US Progress Belief (LSE:USA) and Lion Finance (LSE:BGEO). These mid-cap development shares have produced a median annual return of 14.8% through the previous decade.
The query is, can these FTSE 250 heroes maintain delivering gorgeous returns? I believe they’ll, and consider they demand critical consideration proper now.
Defence star
World defence spending has rocketed since early 2022, lifting Chemring’s share worth by the roof. This defence inventory’s delivered a median yearly return of 11.9% on a 10-year horizon.
To place that into context, that’s extra that double the broader FTSE 250’s corresponding return of 5.5%.
I wouldn’t guess in opposition to additional gorgeous worth good points as geopolitical tensions develop. Chemring manufactures countermeasures, sensors and explosives. And it’s thriving as Western nations rebuild their arsenals following the post-Chilly Struggle lull.
The corporate reported £488m price of latest orders within the first half of 2025, up 44% 12 months on 12 months at steady change charges. To fulfill future demand, it’s quickly increasing manufacturing — by 2028, complete explosives capability will probably be 275% increased than it’s at present.
Regardless of provide chain strains and aggressive threats, I’m anticipating additional share worth development.
Tech growth
The Baillie Gifford US Progress Belief has delivered a wonderful 10.1% common annual return since late 2015. That is all the way down to the gorgeous efficiency of the US inventory market and — extra particularly — the hovering tech sector.
In complete, the funding belief holds 58 tech shares together with ‘Magnificent Seven’ star performers Nvidia, Meta and Amazon. It additionally has stakes in non-public firms like SpaceEx that will in any other case be off limits to personal traders.
As we speak, greater than 35% of Baillie Gifford’s belief is devoted to tech shares. This might trigger it to underperform throughout financial downturns. Extra broadly talking too, nearly 90% of the complete product is devoted to cyclical and delicate industries.
But as we’ve seen, the belief’s technique may result in supersized returns. I’m anticipating it to maintain delivering the products as new tech sectors like synthetic intelligence (AI), robotics and quantum computing take off.
Banking big
Lion Finance has been one of many FTSE 250’s best investments since 2015. It’s delivered a 22.5% common annual return since then, greater than 4 occasions better than the index common.
The inventory traded beneath the Financial institution of Georgia identify till earlier this 12 months. This displays its emerging-market-focus which has fuelled spectacular income (and share worth) development over the past decade. It gives banking providers in Georgia, and final 12 months it expanded into Armenia to spice up future development.
Demand for monetary providers is rocketing throughout these areas. Within the second quarter, Lion Finance’s revenue earlier than one-off gadgets rocketed 19.4% 12 months on 12 months, supported by a 22.5% rise in its mortgage e-book.
Lion Finance faces vital competitors from Georgian rival TBC Financial institution. Even so, a strong financial backdrop suggests it may maintain producing standout returns.
