Baron Technology ETF

BCTK

Market cap $145M

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.

As the markets move through the first quarter of 2026, the tech sector continues to be the engine that's powering global growth. After the recent AI boom, investors are now looking for tech plays in sophisticated, actively managed vehicles with strategies that discern between hype and long-term opportunities.

Software and IT services are undervalued relative to 11-year averages, while semiconductors and hardware remain notably overvalued. Baron Technology ETF is a new, actively managed, high-conviction tech fund with a 0.75% expense ratio and 40 holdings. BCTK is overweight in semiconductors (36%), uses a broader sector scope than XLK, and has strong growth characteristics.