Baron Financials ETF

BCFN

Market cap $48.7M

Sector-specific changes in global finance are leading to a new era of digital innovation that's replacing traditional banking. For investors looking to capitalize on this next wave of growth opportunities in financials, Baron Financials ETF (BCFN) — managed by portfolio manager Josh Saltman — offers a high-conviction, active approach to investing in the sector.

For investors seeking opportunities in the finance sector, an active approach can be beneficial. Today's financial landscape is undergoing structural, regulatory, and macroeconomic shifts.

Active exchange-traded funds (ETFs) came to the forefront in 2025 with the launch of a record number of funds catering to active strategies. 2026 could bring another year for heavy active ETF demand from investors.

During the quarter, the Fund invested in Morgan Stanley, a leading global investment bank and wealth management firm. The Fund also participated in the IPO of Neptune Insurance Holdings Inc., the leading underwriter of private flood insurance. We trimmed Guidewire Software, Inc. on strength to manage exposure to the volatile software sector.

Baron FinTech Fund declined during the fourth quarter, and underperformed its benchmark, the MSCI USA Financials Index. Top contributors were Fair Isaac Corporation, S&P Global Inc., and Jack Henry & Associates, Inc. Top detractors were Robinhood Markets Inc., MercadoLibre Inc., and Guidewire Software, Inc.