Baron First Principles ETF

RONB

Market cap $181M

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