Baron Capital Debuts Active Emerging Markets ETF

How the ETF Works

BCEM  is an actively managed, non-diversified equity ETF focused on capital appreciation through investments in emerging market businesses of any size. Managed by veteran investor Michael Kass, the strategy applies Baron Capital’s long-standing bottom-up research process to identify high-quality growth companies with durable competitive advantages and strong management teams.

Rather than tracking an index, BCEM constructs a concentrated portfolio of high-conviction holdings selected for their long-term earnings potential. The fund looks beyond mega-cap benchmark names, seeking opportunities driven by technological innovation, geopolitical shifts, and regulatory change across emerging economies. Risk management remains central to the process, with active oversight of liquidity, currency exposure, and country-specific dynamics.

Why Investors Should Consider This ETF

Emerging markets can offer compelling growth potential, but they also come with complexity and volatility. BCEM aims to manage this through forward looking, patient, active management grounded in nearly four decades of long-term global investing experience.

The strategy focuses on secular growth opportunities—businesses positioned to benefit from structural changes rather than short-term market cycles. The ETF combines deep fundamental research with a forward-looking lens to identify high-quality growth companies poised to benefit from inflection points before they are fully reflected in market pricing.

For investors, BCEM may serve as a tactical growth allocation that complements core portfolios while pursuing alpha through differentiated stock selection. Its high-conviction approach emphasizes investing in quality companies with long-term value creation potential, supported by disciplined portfolio construction and patience during market volatility.

As Michael Baron, Co-President and Portfolio Manager at Baron Capital, explains:

“The launch of Baron Emerging Markets Select ETF builds on the momentum of our active ETF lineup introduced in December 2025. As demand for actively managed ETFs grows, we remain committed to delivering our time-tested approach in structures that meet clients' evolving needs.”

Matt Camuso, Head of ETF Solutions at Baron Capital, adds:

“BCEM reflects strong and growing client demand for access to our emerging markets expertise. We believe the asset class is well-positioned for continued growth supported by attractive valuations and powerful secular trends reshaping the global economy.”

About the Issuer

Founded in 1982, Baron Capital is a research-driven asset manager focused exclusively on growth equity investing. The firm seeks to invest for the long term in secular growth businesses with durable competitive advantages and strong leadership teams. With $47 billion in assets under management as of March 31, 2026, Baron Capital offers a range of solutions to institutions, financial advisors, and individual investors. Its growing active ETF lineup—including RONB, BCGD, BCSM, BCFN, BCTK, and now BCEM—extends the firm’s established investment philosophy into a flexible, modern ETF structure designed to meet evolving investor preferences.

Please note this article is for information purposes only and does not in any way constitute investment advice. It is essential that you seek advice from a registered financial professional prior to making any investment decision.