Baron Capital on Monday launched five actively managed exchange-traded funds, betting that its long-term record – including a large, early investment in SpaceX – will translate to growing demand for active strategies in an ETF format.
The new funds – the Baron First Principles ETF (RONB), Baron Global Durable Advantage ETF (BCGD), Baron SMID Cap ETF (BCSM), Baron Financials ETF (BCFN) and Baron Technology ETF (BCTK) – began trading on Monday. Each ETF is designed to mirror investment approaches that Baron Capital has used for decades across its mutual funds and private accounts.
Baron Capital founder, CEO and chairman Ron Baron said SpaceX, which is eyeing one of the largest IPOs ever, has exceeded Tesla to become the firm’s largest investment at about $10 billion.
SpaceX’s rapidly expanding Starlink satellite network is a key driver of its long-term investment thesis, Baron said. He added, he is also bullish on the development of space-based data centers, arguing that orbiting infrastructure could sharply reduce operating costs tied to energy and cooling.
“Cooling is a huge cost, put them in space, no more cooling costs,” Baron said.
