The aerospace sector has evolved from a speculative frontier into a foundational pillar of modern global infrastructure. At the forefront of this technological shift is SpaceX, which has redefined the economics of space travel. For investors seeking exposure to high-conviction, growth-oriented investments through an ETF wrapper, Baron First Principles ETF (RONB) provides access to this opportunity.

Reflecting Baron Capital’s strong conviction in SpaceX and its pioneering track record under founder Elon Musk, RONB had a 31.7% allocation to the company as of July 15, 2026. This significant position reflects Baron Capital’s deep belief in the company’s structural advantages and long-term growth potential.

Reusable Flight and Cost Leadership

A core pillar of Baron Capital’s investment thesis is SpaceX’s ability to consistently drive down the cost of launching rockets into orbit. By pioneering and perfecting autonomous rocket landings, the company has established a leading position in reliable, reusable launch capabilities.

“We believe SpaceX will continue to drive down the cost of space launches and capture market share with its unique, reliable, and improving reusable launch capabilities. As costs decline, we also expect demand for access to space to increase,” Baron Capital noted in a market insight report.

See More: Finding High-Conviction Growth in Baron SMID cap ETF, BCSM

Baron Capital views durable competitive advantages like these as a critical component of its investment approach. As launch expenses continue to drop, commercial, scientific, and governmental entities are expected to increase their use of space-based services. SpaceX is uniquely positioned to capitalize on the resulting growth in launch demand.

Starlink Synergy and Vertical Integration

Another reason for Baron Capital’s conviction in SpaceX is the company’s multi-faceted business model, which extends beyond rocket launches. Its rapidly expanding satellite-based broadband network, Starlink, is leveraging SpaceX’s launch capabilities to scale. Baron Capital noted that the company’s vertical integration, manufacturing velocity, and design approach create a competitive moat in building and operating global space infrastructure. In turn, these advantages may support “an even more attractive growth profile for the company.”

For RONB, this 31.7% exposure reflects Baron Capital’s deep conviction in SpaceX’s ability to power a multiplanetary economy.

To learn more about Baron Capital’s full lineup of active ETFs, click here.

For more news, information, and analysis, visit the Market Insights Content Hub.

Disclosure Information

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

Risks: The Fund is non-diversified, which means, in addition to increased volatility of the Fund’s returns, it will likely have a greater percentage of its assets in a single issuer or a small number of issuers, including in a particular industry, than a diversified fund. Single issuer risk is the possibility that factors specific to an issuer to which the Fund is exposed will affect the market prices of the issuer’s securities and therefore the net asset value of the Fund. Specific risks associated with leverage include increased volatility of the Fund’s returns and exposure of the Fund to greater risk of loss in any given period.

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 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.

The Top 10 Holdings for Baron First Principles ETF: Space Exploration Technologies Corp. (32.2%), Tesla, Inc. (12.4%), MSCI Inc. (4.5%), Hyatt Hotels Corporation (4.4%), The Charles Schwab Corporation (3.8%), Interactive Brokers Group, Inc. (3.5%), Shopify Inc. (3.3%), Red Rock Resorts, Inc. (3.0%), Verisk Analytics, Inc. (2.9%), Spotify Technology S.A. (2.7%).

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).

© 2026 Baron Capital. All rights reserved.