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The Scottish Mortgage Investment Trust (LSE: SMT) share price is on fire at the moment. Over the last year, it has surged about 57%.
So, what has driven these gains? And is the trust still a good option for a Stocks and Shares ISA or SIPP today?
Investors have become more bullish
The way I see it, the gains over the last year are down to three main factors. One is a dramatic improvement in investor sentiment.
This time last year, investors were still reeling from US President Donald Trump’s tariff announcements. At the time, Scottish Mortgage shares were trading for around 890p versus 1,120p in mid-February 2025 (so we were essentially starting from a low base).
Today however, investors don’t seem to be too concerned about tariffs (or any other market risks for that matter). And Scottish Mortgage shares are benefitting.
SpaceX has been a huge winner
Another key driver has been the trust’s exposure to Elon Musk’s space company SpaceX. This has had a substantial impact on its net asset value (NAV).
You see, SpaceX – which looks set for an IPO in 2026 – has seen its valuation climb significantly over the last year. Today, people are talking about a potential $2trn valuation versus $200bn this time last year.
So, Scottish Mortgage has done very well from this portfolio holding. Additionally, the exposure to the space company has led to increased investor interest in the trust (note that it now trades at a 4% premium to its NAV) because it offers a way to gain access to the space company pre-IPO.
Lots of other winners
Finally, the trust has done well from a number of other holdings. Some examples here include Amazon, ASML, and Nvidia – these stocks are up between 35% and 110% over the last year.
One other name worth mentioning is AI powerhouse Anthropic (which is still private). Today, people are talking about an $800bn valuation versus $60bn a year ago.
Still a good investment?
Is Scottish Mortgage still a good option to consider for growth exposure today? I think so – I have a decent-sized holding in the investment trust myself.
In my view, it’s well positioned to benefit from the AI infrastructure buildout and several other trends/themes. So, I expect it to perform well over the medium to long term.
That said, a new risk has emerged and that is the trust’s significant exposure to SpaceX. At the end of March, this company was 20% of the portfolio.
It could actually be closer to 30% now given SpaceX’s recent valuation increase. So, all of a sudden there’s a high level of company-specific risk – if SpaceX’s valuation was to tank, the Scottish Mortgage share price could fall.
Personally, I’m comfortable with this risk for now. But it’s certainly something I will be keeping an eye on.
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