Baron First Principles ETF

RONB

Market cap $353M

Baron Capital has been synonymous with a timeless strategy of active management for over 40 years — and an emphasis on long-term, high-conviction growth investing. Baron Capital co-president and portfolio manager, Michael Baron, appeared at ETF Exchange 2026 to discuss the firm's foray into the ETF market.

Market movements in the first months of 2026 were largely driven by short-term sentiment and AI-related expectations. Finding true long-term growth drivers requires investors to focus on fundamentals — Baron First Principles ETF (RONB) serves this purpose.

Nate Geraci explored active ETFs and sector investing on this week's ETF Prime, featuring Baron Capital's Matt Camuso and VanEck's Michael Cohick. Camuso, head of ETF solutions at Baron Capital, discussed the firm's recent entry into the ETF space.

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.

Baron First Principles ETF is rated a Sell due to high expenses, underwhelming portfolio, and insufficient SpaceX exposure. The SpaceX-xAI merger, valuing SpaceX at $1T and xAI at $250B, introduces conflict-of-interest risks and diminishes SpaceX's standalone appeal. Orbital AI data centers, a key merger rationale, face prohibitive costs and technical barriers, making near-term feasibility highly questionable.

Perhaps 2026 is shaping up to be one of the biggest IPO years in a while, with Elon Musk's SpaceX reportedly poised to merge with AI firm xAI.

Morningstar's Ben Johnson returned to this week's ETF Prime podcast to hand out his annual ETF awards, marking his eighth year running with host Nate Geraci in reviewing the year's biggest stories and standout funds. Johnson's awards come as the ETF industry wraps up what he called the “ETF Triple Crown.

Mutual fund and long-term investing heavyweight Baron Capital is launching a suite of actively-managed ETFs. Plus, what Ron & Michael think is next for one of their biggest names: SpaceX