It must be nice to have a biggest fan. Investment company Baron Capital is one of the largest investors in Elon Musk’s aerospace technology company, SpaceX, with allocated assets currently sitting at about $10 billion. The firm also launched five new active products in December that are designed to mirror its strategies in private investment accounts and mutual funds, including the Baron First Principles ETF (RONB), which allocates 14% of its holdings to SpaceX. Along with two new ETF industry hires this ...

You can find original article here WealthManagement. Subscribe to our free daily WealthManagement newsletters. 4 Reasons Why Market Volatility Could Be Different This Time “The transformations we’re witnessing in the US economy are not minor tweaks; they are significant restructurings with potentially long-lasting consequences. We’ve seen substantial job losses in various sectors, and simultaneously, critical government institutions have faced significant budget cuts and personnel reductions.” (Morningstar ...

Core Insights - Private fund assets have tripled over the past decade, significantly outpacing the public market's growth rate of over 2X, indicating a strong interest in private equity and credit among investors [2] - The ETF market for private assets is limited due to structural protections, with the SEC imposing a 15% limit on illiquid holdings, which affects the allocation of ETFs in this category [3][4] - Retail investors are increasingly interested in private equity, but there are few ETFs available that hold private equity assets, leading to considerations regarding valuation and fees associated with these investments [5] ETF Market Dynamics - Interval funds and semi-liquid products have been developed to provide access to private markets, with some ETFs like the SPDR SSGA IG Public & Private Credit ETF (PRIV) and State Street Short Duration IG Public & Private Credit ETF (PRSD) offering around 20% exposure to private credit [4] - The ERShares Private-Public Crossover ETF (XOVR) has gained attention for its 10% allocation to SpaceX, but concerns exist regarding the valuation of such holdings and the potential for high undisclosed fees [5] - Asset managers are focusing on investor education in the realms of private markets and ETFs, leading to increased hiring of product and portfolio specialists [5]

Core Insights - The ETF industry has experienced significant growth, achieving record inflows of nearly $1.4 trillion, nearly 1,100 new launches, and record trading volume, referred to as the "ETF Triple Crown" [1] - ETF assets have reached $13.2 trillion, accounting for 37% of the combined assets of mutual funds and ETFs, with predictions that ETF assets will soon surpass mutual fund assets [2] ETF Awards and Trends - The SPDR Portfolio S&P 500 ETF (SPYM) was awarded ETF of the year, having nearly $100 billion in assets and $33 billion in organic flows, outperforming larger competitors [3] - The Vanguard 0-3 Month Treasury Bill ETF (VBIL) was recognized as the favorite new ETF, being the largest by assets among 2025 launches at over $4 billion, demonstrating the continued appeal of low-cost options [4] - The Horizon Landmark ETF (BENJ) was noted for its clever naming, while the Baron First Principles ETF (RONB) and Bitwise Dogecoin ETF (BWOW) received mentions for their unique branding [5] ETF Issuer Recognition - Vanguard was named ETF issuer of the year, launching 15 ETFs and attracting $421 billion, which constitutes one-third of all ETF flows [6] Industry Trends - The concept of "ETF as a Share Class" was highlighted as the story of the year, with 91 filers seeking exemptive relief, indicating a shift in the industry's recognition of ETFs as legally equivalent to mutual funds [7]

Core Insights - Baron Capital has launched five actively managed exchange-traded funds (ETFs), leveraging its long-term investment success to meet growing demand for active strategies in the ETF market [1][2] Group 1: New ETF Launch - The newly launched ETFs include 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), which began trading on Monday [2] - Each ETF is designed to reflect the investment strategies that Baron Capital has successfully employed over decades in its mutual funds and private accounts [2] Group 2: Investment Focus - SpaceX has become Baron Capital's largest investment at approximately $10 billion, surpassing Tesla, with its expanding Starlink satellite network being a key factor in the long-term investment thesis [3] - The firm is optimistic about the potential of space-based data centers, suggesting that such infrastructure could significantly lower energy and cooling costs [3][4] - Baron Capital has also invested in xAI, another company founded by Elon Musk, which is expected to benefit from the growth of satellite networks and space-based computing for AI services [4] Group 3: Performance and Future Goals - Baron Capital reports that 98% of its assets have outperformed their benchmarks, with around 60% ranking in the top 5% of funds, indicating strong historical performance [4] - The Baron Partners Fund has been recognized as the top-performing U.S. fund since 2003 [4] - Since its inception in 1992 with $100 million in assets, the firm has generated approximately $57 billion in profits and aims to quintuple that amount over the next decade [5]