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By no means thoughts the tech stars of the US inventory market. The FTSE 250 can also be an important place to seek out wealth-boosting development shares, for my part.
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 mean annual return of 14.8% through the previous decade.
The query is, can these FTSE 250 heroes preserve delivering beautiful returns? I feel they will, and consider they demand severe consideration proper now.
Defence star
International defence spending has rocketed since early 2022, lifting Chemring’s share value by the roof. This defence inventory’s delivered a mean 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 beautiful value positive aspects as geopolitical tensions develop. Chemring manufactures countermeasures, sensors and explosives. And it’s thriving as Western nations rebuild their arsenals following the post-Chilly Battle lull.
The corporate reported £488m price of recent orders within the first half of 2025, up 44% yr on yr at secure change charges. To satisfy future demand, it’s quickly increasing manufacturing — by 2028, complete explosives capability will probably be 275% increased than it’s at the moment.
Regardless of provide chain strains and aggressive threats, I’m anticipating additional share value development.
Tech growth
The Baillie Gifford US Progress Belief has delivered a wonderful 10.1% common annual return since late 2015. That is right down to the beautiful 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 personal firms like SpaceEx that will in any other case be off limits to personal buyers.
At this time, 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, virtually 90% of the complete product is devoted to cyclical and delicate industries.
But as we’ve seen, the belief’s technique can even 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 large
Lion Finance has been one of many FTSE 250’s biggest 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 title till earlier this yr. This displays its emerging-market-focus which has fuelled spectacular earnings (and share value) development over the past decade. It supplies banking companies in Georgia, and final yr it expanded into Armenia to spice up future development.
Demand for monetary companies is rocketing throughout these areas. Within the second quarter, Lion Finance’s revenue earlier than one-off gadgets rocketed 19.4% yr on yr, supported by a 22.5% rise in its mortgage guide.
Lion Finance faces important competitors from Georgian rival TBC Financial institution. Even so, a strong financial backdrop suggests it might preserve producing standout returns.
