SpaceX largest holding in Baron First Principles ETF

Baron First Principles ETF (RONB) held a 31.7% position in Space Exploration Technologies Corp. (SpaceX) as of July 15, 2026, making SpaceX the fund’s largest high-conviction holding. The allocation reflects Baron Capital’s concentrated, growth-oriented approach to the ETF.

Baron Capital attributed the large stake to SpaceX’s progress in reusable rocket landings and related reductions in launch costs. In a market insight report the firm wrote: “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.”

The firm pointed to SpaceX’s vertical integration and its Starlink satellite broadband network as factors behind its conviction. Baron Capital said in-house manufacturing and the ability to launch company-built satellites create operational links between launch services and the satellite business.

Baron First Principles is an actively managed ETF that is non-diversified, which permits a larger share of assets to be concentrated in one issuer or a small group of issuers than a diversified fund. The fund’s published top holdings list names SpaceX alongside Tesla Inc. (12.4%), MSCI Inc. (4.5%), Hyatt Hotels Corp. (4.4%), The Charles Schwab Corp. (3.8%), Interactive Brokers Group Inc. (3.5%), Shopify Inc. (3.3%), Red Rock Resorts Inc. (3.0%), Verisk Analytics Inc. (2.9%) and Spotify Technology S.A. (2.7%). Portfolio holdings are subject to change.

The fund prospectus warns that single-issuer concentration can increase volatility and that the use of leverage can raise the risk of loss in any period. The document notes that ETF shares trade on the secondary market at market price rather than net asset value, and that only authorized participants may create or redeem Creation Units directly with the fund. The prospectus also details transaction costs investors may face when buying or selling shares.

Baron Capital’s materials include forward-looking statements and state that actual results may differ from the firm’s expectations. Investors are advised to read the prospectus and consider the fund’s objectives, charges and risks before investing.