Baron First Principles ETF

RONB

Market cap $1.34B

Baron Capital continues to grow its active ETF lineup with today's introduction of Baron Risk Optimized Large Cap ETF™ (BROL). The ETF builds upon the firm's commitment to long-term growth investing with a targeted focus on U.S. large-cap companies that exhibit durable competitive advantages, significant growth opportunities, exceptional management teams, and compelling valuations.

Baron First Principles ETF had a disappointing start to 2026, with a decline of 8.51% (NAV) compared with a 9.54% loss for the Russell 3000 Growth Index. Baron First Principles ETF increased its positions in many stocks while adding a couple of new names during the quarter. FIGS, Inc. revenue expanded 33% to $201.9 million, reflecting broad-based momentum across categories and geographies and exceeding expectations.

For Baron Capital, identifying a strong company through a “First Principles” analysis goes beyond balance sheets or income statements. In ETFs such as Baron First Principles ETF (RONB), they use leadership as one of their prime metrics to separate long-term, durable companies from temporary market darlings.

While Baron First Principles ETF (RONB) holds positions in founder Elon Musk's Tesla and SpaceX, a deeper look reveals a portfolio full of high-conviction holdings. Guided by the firm's First Principles philosophy, RONB includes companies such as MSCI, Shopify, Hyatt, Charles Schwab, and FactSet Research Systems.

In 2026, the financial world is bracing for what could be one of the biggest IPOs to date: Space Exploration Technologies (SpaceX). With a potential valuation of approximately $1.75 trillion and a possible listing date as early as June 2026, pre-IPO demand is increasing.

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.