Baron Capital Debuts Three Active ETFs on NYSE

How the ETFs Work

Each of the three ETFs applies Baron Capital’s established investment discipline, tailored to distinct segments of the equity market.

The Baron First Principles ETF

seeks capital appreciation through investments in growth companies of any market capitalization. Guided by a First Principles approach—breaking problems down to their core truths and challenging assumptions—this framework reflects Baron Capital’s longstanding philosophy of “questioning everything” to uncover true value. Investments are made in businesses with the potential for significant growth with durable competitive advantages, and exceptional management teams. Investments are purchased at valuations we believe are attractive based on their long-term intrinsic value. The portfolio holdings are primarily in U.S. securities and can deploy leverage of up to one third of total net assets when market conditions and opportunities present themselves. The strategy is non-diversified. 

The Baron Global Durable Advantage ETF

seeks capital appreciation through investments in large-cap growth companies with durable competitive advantages and are capital-efficient. Investments are made in high-quality compounders that tend to earn high returns on investment capital and generate excess free cash flow. A portion of excess cash is typically returned to shareholders. The portfolio invests globally, and under normal market conditions would hold at least 40% of the portfolio outside the U.S in at least three countries. The strategy is non-diversified.    

The Baron SMID Cap ETF

seeks capital appreciation through investments in small- and mid-cap growth companies. Investments are made in both emerging and more established, scalable businesses. The portfolio actively manages risk by balancing industry exposure, position sizing, and the types of growth represented by the investments. The portfolio holdings are primarily in U.S. securities.  The strategy is diversified.  

Why Investors Should Consider These ETFs

The three ETFs offer differentiated entry points into Baron Capital’s growth equity investing philosophy, allowing investors to align exposure with their portfolio objectives.

The Baron First Principles ETF

is designed for long-term investors seeking high-conviction growth exposure. The strategy aims to complement both core and tactical allocations. The ETF is differentiated through Baron Capital’s First Principles philosophy. It reflects Baron Capital’s drive to question assumptions, maintain intellectual curiosity, and uncover opportunities that others overlook.

The Baron Global Durable Advantage ETF

is designed for long-term investors seeking defensively positioned core growth exposure. The strategy complements both core and tactical allocations. The ETF extends Baron Capital’s durable-advantage philosophy worldwide by investing in large-cap growth companies with robust competitive advantages. The management team leverages Baron Capital’s in-house research to access a pipeline of global companies, many of which the Firm has tracked since an earlier growth stage.

The Baron SMID Cap ETF

is designed for long-term investors seeking core growth exposure. The strategy complements both core and tactical allocations. The ETF is differentiated by its robust risk management framework and the depth of research that underpins its portfolio, with the goal of identifying high-quality companies. This discipline takes advantage of market inefficiencies and uncovers overlooked SMID-cap gems with compelling valuations.

About Baron Capital

Baron Capital is a research and asset management firm focused exclusively on delivering growth equity investment solutions to institutions, financial advisors, and individual investors. Since its founding in 1982, Baron Capital has been united under one style of investing with a single objective–to be long-term investors in secular growth businesses with durable competitive advantages, run by great management teams. With $44.3 billion in assets under management (as of 11/30/2025) across 19 strategies, Baron Capital prides itself on delivering top performance with 96.1% of Baron Funds AUM outperforming their respective benchmarks since inception (as of 9/30/2025).

For more information, visit https://www.baroncapitalgroup.com/.

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.

Investors should consider the investment objectives, risks, charges, and expenses of the Baron Funds carefully before investing. The prospectus and summary prospectus contain this and other information about Baron Funds. You may obtain them from its distributor, Baron Capital, Inc., by calling 1-800-99-BARON or visiting BaronCapitalGroup.com. Please read it carefully before investing.

 

The performance data quoted represents past performance. Past performance is no guarantee of future results. The investment return and principal value of an investment will fluctuate; an investor’s shares, when redeemed, may be worth more or less than their original cost. The Adviser waives and/or reimburses or may waive or reimburse certain Funds expenses pursuant to a contract expiring on August 29, 2036, unless renewed for another 11-year term and the Funds' transfer agency expenses may be reduced by expense offsets from an unaffiliated transfer agent, without which performance would have been lower. Current performance may be lower or higher than the performance data quoted above. For performance information current to the most recent month end, visit BaronCapitalGroup.com or call 1-800-99-BARON.

As of 9/30/2025

(1) Performance reflects the actual fees and expenses that were charged when the Fund was a partnership. The predecessor partnership charged a 15% performance fee through 2003 after reaching a certain performance benchmark. If the annual returns for the Fund did not reflect the performance fee for the years the predecessor partnership charged a performance fee, returns would be higher. The Fund's shareholders will not be charged a performance fee. The predecessor partnership's performance is only for periods before the Fund's registration statement was effective, which was June 30, 2008. During those periods, the predecessor partnership was not registered under the Investment Company Act of 1940 and was not subject to its requirements or the requirements of the Internal Revenue Code relating to registered investment companies, which, if it were, might have adversely impacted its performance. (2) The since inception date for Russell Midcap Growth Index is 6/30/1987. (3) Performance reflects the actual fees and expenses that were charged when the Fund was a partnership. The predecessor partnership charged a 20% performance after reaching a certain performance benchmark. If the annual returns for the Fund did not reflect the performance fee for the years the predecessor partnership charged a performance fee, returns would be higher. The Fund's shareholders will not be charged a performance fee. The predecessor partnership's performance is only for periods before the Fund's registration statement was effective, which was April 30, 2003. During those periods, the predecessor partnership was not registered under the Investment Company Act of 1940 and was not subject to its requirements or the requirements of the Internal Revenue Code relating to registered investment companies, which, if it were, might have adversely impacted its performance. (4) While the Fund may invest in securities of any market capitalization, 45.8% of the Fund’s long holdings were invested in SMID, Mid and Mid/Large-Cap securities (as defined by Russell, Inc.) as of 9/30/2025 (SMID represents 10.5% of the portfolio and has market capitalizations between $5.4 – $16.8 billion; Mid represents 28.0% and has market capitalizations between $16.8 – $58.2 billion; Mid /Large represents 7.4% and has market capitalizations between $58.2 – $202.7 billion). (5) The Broad-Based Benchmark for Baron Discovery Fund, Baron Growth Fund, Baron Small Cap Fund, Baron Focused Growth Fund, Baron Asset Fund, Baron Partners Fund, and Baron Health Care Fund is Russell 3000 Index. The Broad-Based Benchmark for Baron Durable Advantage Fund, Baron Fifth Avenue Growth Fund, Baron Opportunity Fund, Baron FinTech Fund, Baron Real Estate Fund, Baron Real Estate Income Fund, Baron Technology Fund, and Baron WealthBuilder Fund is S&P 500 Index. The Broad- Based Benchmark for Baron Emerging Markets Fund is MSCI Emerging Markets Index. The Broad-Based Benchmark for Baron International Growth Fund is MSCI ACWI ex USA Index. The Broad-Based Benchmark for Baron Global Opportunity Fund, Baron FinTech Fund, Baron Technology Fund, and Baron WealthBuilder Fund is MSCI ACWI Index. (6) As of 1/28/2025. (7) Comprised of operating expenses of 1.03% and interest expense of 0.05%. (8) As of 4/30/2025. (9) Gross annual expense ratio was 0.77%, but the net annual expense ratio was 0.70% (net of Adviser’s fee waivers). (10) Gross annual expense ratio was 0.76%, but the net annual expense ratio was 0.75% (net of Adviser’s fee waivers). (11) Comprised of operating expenses of 1.05% and interest expense of 0.94%. (12) Gross annual expense ratio was 0.96%, but the net annual expense ratio was 0.91% (net of Adviser’s fee waivers, including interest expense of 0.01%). (13) Gross annual expense ratio was 6.86%, but the net annual expense ratio was 1.20% (net of Adviser’s fee waivers and expense reimbursements). (14) Gross annual expense ratio was 1.04%, but the net annual expense ratio was 0.96% (net of Adviser’s fee waivers). (15) Gross annual expense ratio was 1.13%, but the net annual expense ratio was 0.95% (net of Adviser’s fee waivers). (16) Gross annual expense ratio was 0.87%, but the net annual expense ratio was 0.85% (net of Adviser’s fee waivers). (17) Gross annual expense ratio was 0.90%, but the net annual expense ratio was 0.80% (net of Adviser’s fee waivers). (18) Gross annual expense ratio was 1.35%, but the net annual expense ratio was 0.95% (net of Adviser’s fee waivers and expense reimbursements). (19) Gross annual expense ratio was 1.21%, but the net annual expense ratio was 1.18% (includes acquired fund fees and expenses, net of the expense reimbursements).

 

If a Fund’s historical performance was impacted by gains from IPOs there is no guarantee that these results can be repeated or that the Funds' level of participation in IPOs will be the same in the future.

 

† As stated within the Supplement to the Summary Prospectus, Prospectus and Statement of Additional Information dated April 30, 2025, effective October 1, 2025, Baron Global Advantage Fund® has changed its name to Baron Global Opportunity Fund™. For additional information please refer to the Supplement.

 

Risks: All investments are subject to risk and may lose value.

 

The discussion of market trends is not intended as advice to any person regarding the advisability of investing in any particular security. The views expressed in this document reflect those of the respective writer. Some of our comments are based on management expectations and are considered “forward-looking statements.” Actual future results, however, may prove to be different from our expectations. Our views reflect our best judgment at the time and are subject to change at any time based on market and other conditions and Baron Capital has no obligation to update them.

 

BAMCO, Inc. is an investment adviser registered with the U.S. Securities and Exchange Commission (SEC). Baron Capital, Inc. is a broker-dealer registered with the SEC and member of the Financial Industry Regulatory Authority, Inc. (FINRA).