Traditional market-cap-weighted financial sector strategies are often concentrated in large banks and insurers, which can limit exposure to higher growth potential. In contrast, Baron Financials ETF (BCFN), managed by Josh Saltman, takes an active, long-term approach by investing in competitively advantaged financial and financial-related growth companies across market capitalizations and geographies. The portfolio combines established Leaders — companies that generally offer stable growth, higher margins, and moderate valuations — with smaller, earlier-stage Challengers that may offer higher growth, lower margins, and higher valuations. BCFN began trading as an ETF on December 15, 2025, following the conversion of its predecessor mutual fund, and continues to pursue growth across market cycles through the same fundamental investment strategy.Key Takeaways:
BCFN seeks long-term capital appreciation by investing in financial and financial-related growth companies across market capitalizations and geographies
BCFN differentiates its exposure from traditional financial benchmarks by investing beyond banks and insurers in asset-light, service-oriented businesses that use technology and data to support growth
The portfolio combines global payment networks such as Visa and Mastercard with a mix of leading banks, wealth platforms, financial data providers, and other technology-enabled businesses
See More: How Active Management Assists With Emerging Markets InvestingAnchored in Established LeadersThe Fund’s 10 largest holdings represented 44.4% of net assets as of June 30, 2026. Visa and Mastercard were its two largest holdings and highlight the portfolio’s focus on investing in businesses powered by secular growth trends. Both generate high-margin revenue through global payment networks positioned to benefit from the continued shift from cash to electronic payments.
JPMorgan Chase was also a top holding, providing exposure to a traditional bank that benefits from scale. Bank of America, another prominent position, operates one of the largest wealth-management franchises and benefits from strong client retention. Charles Schwab complements these holdings with exposure to wealth management and brokerage, where client asset growth and improving funding efficiency support its earnings outlook. Together, these established leaders help anchor the portfolio with stable growth profiles and strong margins.Powered by the Digital Evolution of FinanceBCFN pairs these established leaders with faster-growing companies in areas such as financial software and information services, which creates a balanced growth profile with exposure to emerging opportunities. Through rigorous fundamental research, the strategy focuses on business quality rather than short-term momentum, seeking companies positioned to benefit from the continued digitization of global finance over the long term.
Saltman described the strategy’s focus: “It will primarily focus on financial businesses that leverage technology, data, and innovation to help them grow more quickly and better serve their customers over the long term.” With consumer and business spending remaining healthy, the management team believes the economic backdrop should support continued earnings growth across the portfolio.
For investors seeking differentiated exposure to financials, BCFN combines established industry leaders with technology-enabled innovators to participate in the sector’s long-term evolution.
For more news, information, and analysis, visit the Market Insights Content Hub.DisclosuresOn December 12, 2025, Baron FinTech Fund® was converted from a mutual fund into an exchange-traded fund, Baron Financials ETF™. The ETF has an identical investment goal and substantially similar investment strategy as its predecessor mutual fund. For additional information please refer to the prospectus.
Investors should consider the investment objectives, risks, charges, and expenses of the Fund carefully before investing. The prospectus and summary prospectus contain this and other information about the Fund and can be obtained from the Fund’s distributor, Baron Capital, Inc., by calling 1-800-99-BARON or visiting BaronCapitalGroup.com. Please read them carefully before investing.
NAV and Market Price returns include returns of the Institutional Shares of the predecessor mutual fund prior to the ETF’s commencement of operations. Prior to the ETFs listing on 12/15/2025 the NAV returns of the Institutional Shares of the predecessor mutual fund are used as proxy market price returns. If the predecessor mutual fund had been structured as an ETF, its performance may have differed.
Historical performance was impacted by gains from IPOs. There is no guarantee that these results can be repeated or the level of IPO participation will be the same in the future.
Risks: In addition to general market conditions, FinTech companies may be adversely impacted by government regulations, economic conditions and deterioration in credit markets. Companies in the Information Technology sector are subject to rapid changes in technology product cycles; rapid product obsolescence; government regulation; and increased competition, both domestically and internationally. The IT services industry can be significantly affected by competitive pressures, such as technological developments, fixed-rate pricing, and the ability to attract and retain skilled employees. Even though the Portfolio is diversified, it may establish significant positions where the Adviser has the greatest conviction. This could increase volatility of the Portfolio’s returns.
This information does not constitute an offer to sell or a solicitation of any offer to buy securities by anyone in any jurisdiction where it would be unlawful under the laws of that jurisdiction to make such offer or solicitation. This information is only for the intended recipient and may not be distributed to any third party.
Investors generally incur the cost of the spread between the prices at which shares are bought and sold. Buying and selling shares may result in brokerage commissions which will reduce returns.
Prior to trading in the secondary market, shares of the fund are “created” at NAV by market makers, large investors and institutions only in block-size Creation Units. Each “creator” or “Authorized Participant” enters into an authorized participant agreement with Baron Capital, Inc. Only an Authorized Participant may create or redeem Creation Units directly with the fund.
Investors buy and sell shares of ETFs at market price (not NAV) in the secondary market throughout the trading day. These shares are not individually available for purchase or redemption directly from the ETF. Baron Capital, Inc. serves as the distributor of the Creation Units for the ETFs on an agency basis. Baron Capital does not maintain a secondary market in Fund’s shares.
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 are a reflection of our best judgment at the time and are subject to change at any time based on market and other conditions and Baron has no obligation to update them.
The Top 10 Holdings for Baron Financials ETF as of 6/30/2026: Visa Inc. (6.0%), Mastercard Incorporated (5.6%), Bank of America Corporation (4.9%), Interactive Brokers Group, Inc. (4.5%), Morgan Stanley (4.3%), The Charles Schwab Corporation (4.1%), S&P Global Inc. (4.0%), JPMorgan Chase & Co. (3.8%), Moody’s Corporation (3.7%), MSCI Inc. (3.6%).
Portfolio holdings are subject to change. Current and future portfolio holdings are subject to risk.
Investment Products: NOT FDIC INSURED | MAY LOSE VALUE | NOT BANK GUARANTEED
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).
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