Baron ETF Trust
Item 2.
Code of Ethics.
The
Registrant has adopted a Code of Ethics for Principal Executive and Senior
Financial Officers (the “Code”). Upon request, the Registrant will provide a
copy of the Code to any person without charge. To obtain a copy of the Code,
please send your request to [email protected] or call 1-800-99BARON (1-800-992-2766).
Item 3.
Audit Committee Financial Expert.
The
Registrant’s Board of Trustees has determined that the Registrant has three
audit committee financial experts serving on its Audit Committee, Alex
Yemenidjian, Thomas J. Folliard, and Marvelle Sullivan. Mr. Yemenidjian,
Mr. Folliard, and Ms. Sullivan are “independent” for purposes of Item
3(a)(2) of Form N-CSR.
Item 4.
Principal Accountant Fees and Services.
The
following table shows the fees paid to PricewaterhouseCoopers, LLP, the
Registrant’s principal accounting firm during the fiscal years ended
December 31, 2024 and December 31, 2025:
| (a) |
Audit
Fees: for professional services rendered for the audit of the Registrant’s
annual financial statements or services that are normally provided in
connection with statutory and regulatory filings or engagements:
|
|
|
|
|
|
|
|
|
| |
| |
|
2025 |
|
|
2024 |
|
|
Baron
ETF Trust |
|
$ |
201,500 |
|
|
$ |
0 |
|
| (b) |
Audit-Related
Fees: for assurance and related services that are reasonably related to
the performance of the audit and are not included as Audit Fees. For 2025,
the audit-related fees were for review procedures in conjunction with an
N-14 registration statement
filing: |
|
|
|
|
|
|
|
|
| |
| |
|
2025 |
|
|
2024 |
|
|
Baron
ETF Trust |
|
$ |
19,000 |
|
|
$ |
0 |
|
| (c) |
Tax
Fees: for professional services rendered for tax compliance, tax advice
and tax planning: |
|
|
|
|
|
|
|
|
| |
| |
|
2025 |
|
|
2024 |
|
|
Baron
ETF Trust |
|
$ |
65,530 |
|
|
$ |
0 |
|
The
Tax Fees represent services provided in connection with the preparation of tax
returns and year-end distribution
review.
| (d) |
All
Other Fees: for products and services provided by such accounting firm
that are not included in (a), (b) or (c) above:
|
|
|
|
|
|
|
|
|
| |
| |
|
2025 |
|
|
2024 |
|
|
Baron
ETF Trust |
|
$ |
0 |
|
|
$ |
0 |
|
| e) |
Audit Committee Pre-Approval Policies and
Procedures |
| |
(1) |
Pursuant
to paragraph (c)(7) of Rule 2-01
of Regulation S-X and to its
charter, the Audit Committee shall pre-approve all audit and non-audit services provided by the
independent auditors and in connection therewith to review and evaluate
the qualifications, independence and performance of the Fund’s independent
auditors; |
| |
(2) |
0%
of the services described in each of items 4(b) through 4(d) were approved
by the Audit Committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X. |
| (g) |
The
aggregate non-audit fees billed
by the registrant’s accountant for services rendered to the registrant,
and rendered to the registrant’s investment adviser (not including any
sub-adviser whose role is
primarily portfolio management and is subcontracted with or overseen by
another investment adviser), and any entity controlling, controlled by, or
under common control with the adviser that provides ongoing services to
the registrant for the last two fiscal years is as follows:
|
|
|
|
|
|
|
|
|
| |
| |
|
2025 |
|
|
2024 |
|
|
Baron
ETF Trust |
|
$ |
84,530 |
|
|
$ |
0 |
|
| (h) |
For
the most recent fiscal year, the Audit Committee has determined that the
provision of all non-audit
services was consistent with maintaining the principal accountant’s
independence. |
Item 5.
Audit Committee of Listed Registrants.
The
Registrant has a separately-designated standing Audit Committee established in
accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934.
The members of the Audit Committee are Alex Yemenidjian, Thomas J. Folliard, and
Marvelle Sullivan.
Item 6.
Investments.
(a)
The information is disclosed as part of the Financial Statements and Other
Important Information included in Item 7 of this Form N-CSR.
(b)
Not applicable.
Item 7.
Financial Statements and Financial Highlights for Open-End Management Investment Companies.
Baron First Principles ETF
Baron Global Durable Advantage ETF
Baron SMID Cap ETF
Baron Financials ETF
Baron Technology ETF
ETF Trust™
Baron ETF Trust
Annual Financial Statements
and Other Important Information
|
|
|
|
|
|
|
|
| |
| Baron First
Principles ETF |
|
|
| |
|
Ticker Symbol: RONB |
|
|
|
|
|
|
|
|
| Baron Global
Durable Advantage ETF |
|
|
| |
|
Ticker Symbol: BCGD |
|
|
|
|
|
|
|
|
| Baron SMID
Cap ETF |
|
|
| |
|
Ticker Symbol: BCSM |
|
|
|
|
|
|
|
|
| Baron
Financials ETF |
|
|
| |
|
Ticker Symbol: BCFN |
|
|
|
|
|
|
|
|
| Baron
Technology ETF |
|
|
| |
|
Ticker Symbol: BCTK |
|
|
|
|
|
|
|
|
DEAR BARON ETF TRUST SHAREHOLDER:
In
this report, you will find audited financial statements and other important
information for Baron First Principles ETF, Baron Global Durable Advantage ETF,
Baron SMID Cap ETF, Baron Financials ETF, and Baron Technology ETF (the Funds)
for the year ended December 31, 2025.
We
thank you for choosing to join us as fellow shareholders in Baron ETF Trust. We
will continue to work hard to justify your confidence.
Sincerely,
|
|
|
|
| |
 |
|
|
|
|
|
Ronald
Baron
Chief
Executive Officer
February
27, 2026 |
|
Patrick
M. Patalino
Chief
Operating Officer
February
27, 2026 |
|
Christopher
Snively
Chief Financial Officer
and
Treasurer
February
27, 2026 |
These
Annual Financial Statements are for the Baron ETF Trust, which currently has
five series: Baron First Principles ETF, Baron Global Durable Advantage ETF,
Baron SMID Cap ETF, Baron Financials ETF, and Baron Technology ETF. If you are
interested in Baron Select Funds Trust, which currently has 10 series: Baron
Partners Fund, Baron Focused Growth Fund, Baron International Growth Fund, Baron
Real Estate Fund, Baron Emerging Markets Fund, Baron Global Opportunity Fund,
Baron Real Estate Income Fund, Baron Health Care Fund, Baron India Fund, and
Baron WealthBuilder Fund, or Baron Investment Funds Trust, which contains the
Baron Asset Fund, Baron Growth Fund, Baron Small Cap Fund, Baron Opportunity
Fund, Baron Fifth Avenue Growth Fund, Baron Discovery Fund, and Baron Durable
Advantage Fund, please visit the Funds’ website at BaronCapitalGroup.com or
contact us at 1-800-99BARON.
The
Funds’ Proxy Voting Policy is available without charge and can be found on the
Funds’ website at BaronCapitalGroup.com, by clicking on the “Regulatory
Documents” link at the bottom left corner of the homepage or by calling
1-800-99BARON and on the Securities and Exchange Commission’s (SEC) website at
sec.gov. The Funds’ most current proxy voting record, Form N-PX, is also
available on the Funds’ website and on the SEC’s website.
The
Funds file their complete Portfolios of Investments with the SEC for the first
and third quarters of each fiscal year as an exhibit to their reports on Form
N-PORT. The Funds’ Form N-PORT reports are available on the SEC’s website at
sec.gov. Portfolios of Investments current to the most recent first and third
quarters are also available on the Funds’ website.
Past performance is no guarantee of future results.
The investment return and principal value of an investment will
fluctuate; an investor’s shares, when redeemed, may be worth more or less than
their original cost. For more complete information about Baron Funds, including
charges and expenses, call, write or go to BaronCapitalGroup.com for a
prospectus or summary prospectus. Read them carefully before you invest or send
money. This report is not authorized for use as an offer of sale or a
solicitation of an offer to buy shares of the Funds, unless accompanied or
preceded by the Funds’ current prospectus or summary prospectus.
|
|
| |
| Baron First Principles ETF |
|
December 31,
2025 |
PORTFOLIO OF INVESTMENTS
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Shares |
|
|
|
|
Cost |
|
|
Value |
|
| Common Stocks (91.85%) |
|
| Communication Services (7.63%) |
|
|
|
|
| |
Movies &
Entertainment (7.63%) |
|
| |
12,801 |
|
|
Live
Nation Entertainment, Inc.1 |
|
$ |
1,773,405 |
|
|
$ |
1,824,143 |
|
| |
6,175 |
|
|
Spotify
Technology SA1,2 |
|
|
3,647,089 |
|
|
|
3,585,884 |
|
|
|
|
| |
| |
|
|
|
|
|
|
|
| |
Total
Communication Services |
|
|
5,420,494 |
|
|
|
5,410,027 |
|
|
|
|
| |
| |
|
|
|
|
|
|
|
|
| Consumer Discretionary (29.83%) |
|
|
|
|
| |
Automobile
Manufacturers (10.29%) |
|
| |
16,215 |
|
|
Tesla,
Inc.1 |
|
|
7,577,899 |
|
|
|
7,292,210 |
|
|
|
|
| |
Casinos &
Gaming (3.98%) |
|
| |
45,463 |
|
|
Red
Rock Resorts, Inc., Cl A |
|
|
2,791,874 |
|
|
|
2,816,433 |
|
|
| |
|
|
|
| |
Footwear
(3.14%) |
|
| |
21,016 |
|
|
Birkenstock
Holding PLC1,2 |
|
|
940,801 |
|
|
|
859,554 |
|
| |
29,361 |
|
|
On
Holding AG, Cl A1,2 |
|
|
1,422,333 |
|
|
|
1,364,699 |
|
|
|
|
| |
| |
|
|
|
|
|
|
|
|
|
| |
|
2,363,134 |
|
|
|
2,224,253 |
|
|
|
|
| |
Homebuilding
(1.94%) |
|
| |
10,180 |
|
|
Toll
Brothers, Inc. |
|
|
1,411,417 |
|
|
|
1,376,539 |
|
|
|
|
| |
Hotels,
Resorts & Cruise Lines (8.60%) |
|
| |
10,750 |
|
|
Airbnb,
Inc., Cl A1 |
|
|
1,426,963 |
|
|
|
1,458,990 |
|
| |
19,087 |
|
|
Choice
Hotels International, Inc. |
|
|
1,762,045 |
|
|
|
1,818,228 |
|
| |
17,579 |
|
|
Hyatt
Hotels Corp., Cl A |
|
|
2,848,182 |
|
|
|
2,818,265 |
|
|
|
|
| |
| |
|
|
|
|
|
|
|
|
|
| |
|
6,037,190 |
|
|
|
6,095,483 |
|
|
|
|
| |
Leisure
Facilities (1.88%) |
|
| |
10,016 |
|
|
Vail
Resorts, Inc. |
|
|
1,557,114 |
|
|
|
1,330,125 |
|
|
|
|
| |
| |
|
|
|
|
|
|
|
| |
Total
Consumer Discretionary |
|
|
21,738,628 |
|
|
|
21,135,043 |
|
|
|
| |
|
|
|
|
|
|
|
|
| Financials (24.54%) |
|
|
|
|
| |
Financial
Exchanges & Data (11.50%) |
|
| |
9,690 |
|
|
FactSet
Research Systems, Inc. |
|
|
2,814,228 |
|
|
|
2,811,941 |
|
| |
6,761 |
|
|
Morningstar,
Inc. |
|
|
1,425,932 |
|
|
|
1,469,233 |
|
| |
6,743 |
|
|
MSCI,
Inc. |
|
|
3,754,076 |
|
|
|
3,868,662 |
|
|
|
|
| |
| |
|
|
|
|
|
|
|
|
|
| |
|
7,994,236 |
|
|
|
8,149,836 |
|
|
|
|
| |
Investment
Banking & Brokerage (7.21%) |
|
| |
45,120 |
|
|
Interactive
Brokers Group, Inc., Cl A |
|
|
2,886,802 |
|
|
|
2,901,667 |
|
| |
22,121 |
|
|
The
Charles Schwab Corp. |
|
|
2,147,572 |
|
|
|
2,210,109 |
|
|
|
|
| |
| |
|
|
|
|
|
|
|
|
|
| |
|
5,034,374 |
|
|
|
5,111,776 |
|
|
|
|
| |
Property &
Casualty Insurance (5.83%) |
|
| |
20,785 |
|
|
Arch
Capital Group Ltd.1,2 |
|
|
1,973,515 |
|
|
|
1,993,697 |
|
| |
5,460 |
|
|
Kinsale
Capital Group, Inc. |
|
|
2,107,569 |
|
|
|
2,135,515 |
|
|
|
|
| |
| |
|
|
|
|
|
|
|
|
|
| |
|
4,081,084 |
|
|
|
4,129,212 |
|
|
|
| |
|
|
|
|
|
|
|
| |
Total
Financials |
|
|
17,109,694 |
|
|
|
17,390,824 |
|
|
|
| |
|
|
|
|
|
|
|
|
| Health Care (3.35%) |
|
|
|
|
| |
Health
Care Equipment (3.35%) |
|
| |
3,507 |
|
|
IDEXX
Laboratories, Inc.1 |
|
|
2,429,599 |
|
|
|
2,372,591 |
|
|
|
|
| |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Shares |
|
|
|
|
Cost |
|
|
Value |
|
| Common Stocks (continued) |
|
| Industrials (6.73%) |
|
|
|
|
| |
Aerospace &
Defense (3.14%) |
|
| |
8,807 |
|
|
HEICO
Corp., Cl A |
|
$
|
2,143,952 |
|
|
$
|
2,223,151 |
|
|
|
|
| |
Research &
Consulting Services (3.59%) |
|
| |
11,370 |
|
|
Verisk
Analytics, Inc. |
|
|
2,477,466 |
|
|
|
2,543,355 |
|
|
|
|
| |
| |
|
|
|
|
|
|
|
| |
Total
Industrials |
|
|
4,621,418 |
|
|
|
4,766,506 |
|
|
|
| |
|
|
|
|
|
|
|
|
| Information Technology (15.56%) |
|
|
|
|
| |
Application
Software (6.49%) |
|
| |
16,526 |
|
|
Guidewire
Software, Inc.1 |
|
|
3,357,322 |
|
|
|
3,321,891 |
|
| |
36,080 |
|
|
Samsara,
Inc., Cl A1 |
|
|
1,441,189 |
|
|
|
1,279,036 |
|
|
|
|
| |
| |
|
|
|
|
|
|
|
|
|
| |
|
4,798,511 |
|
|
|
4,600,927 |
|
|
|
|
| |
Internet
Services & Infrastructure (5.49%) |
|
| |
24,165 |
|
|
Shopify,
Inc., Cl A1,2 |
|
|
3,966,284 |
|
|
|
3,889,840 |
|
|
|
|
| |
IT
Consulting & Other
Services (3.58%) |
|
|
|
| |
|
| |
| |
10,056 |
|
|
Gartner,
Inc.1 |
|
|
2,396,466 |
|
|
|
2,536,928 |
|
|
|
|
| |
| |
|
|
|
|
|
|
|
| |
Total
Information Technology |
|
|
11,161,261 |
|
|
|
11,027,695 |
|
|
|
| |
|
|
|
|
|
|
|
|
| Real Estate (4.21%) |
|
|
|
|
| |
Real
Estate Services (4.21%) |
|
| |
44,370 |
|
|
CoStar
Group, Inc.1 |
|
|
2,941,010 |
|
|
|
2,983,439 |
|
|
|
|
| |
| |
|
|
|
|
|
|
|
| |
Total
Common Stocks |
|
|
65,422,104 |
|
|
|
65,086,125 |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| |
| |
|
|
| |
|
| |
| Private Preferred Stocks
(7.06%) |
|
| Communication Services (7.06%) |
|
|
|
|
| |
Interactive
Media & Services (7.06%) |
|
| |
66,260 |
|
|
X.AI
Holdings Corp., Series E1,3,4,5 |
|
|
4,999,980 |
|
|
|
4,999,980 |
|
|
|
|
| |
| |
|
|
|
|
|
|
|
| |
Total Investments
(98.91%) |
|
$ |
70,422,084 |
|
|
|
70,086,105 |
|
|
|
|
| |
| |
|
|
|
|
|
| |
| |
Cash and Other
Assets Less Liabilities (1.09%) |
|
|
|
770,492 |
|
|
|
|
| |
| |
|
|
| |
|
|
|
| |
Net
Assets |
|
|
$ |
70,856,597 |
|
|
|
|
| |
| |
|
|
| |
|
|
|
| % |
Represents
percentage of net assets. |
| 1 |
Non-income producing securities.
|
| 3 |
At
December 31, 2025, the market value of restricted securities amounted
to $4,999,980 or 7.06% of net assets. See Note 6 regarding Restricted
Securities. |
| 4 |
Sector
levels are provided from the Global Industry Classification Standard
(GICS), developed and exclusively owned by MSCI Inc. (MSCI) and Standard
and Poor’s Financial Services LLC (S&P). The Adviser has
reclassified/classified certain securities in or out of this sub-industry. Such
reclassifications/classifications are not supported by S&P or MSCI
(unaudited). |
| 5 |
Level 3
security. See Note 7 regarding Fair Value Measurements.
|
All
securities are Level 1, unless otherwise noted.
|
|
| |
| 2 |
|
See Notes to Financial
Statements. |
|
|
| |
| December 31, 2025 |
|
Baron Global Durable Advantage
ETF |
PORTFOLIO OF INVESTMENTS
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Shares |
|
|
|
|
Cost |
|
|
Value |
|
| Common Stocks (99.53%) |
|
| Argentina (1.71%) |
|
| |
28 |
|
|
MercadoLibre,
Inc.1 |
|
$ |
56,289 |
|
|
$ |
56,399 |
|
|
|
|
| |
| |
|
|
|
|
|
|
|
|
| Brazil (2.43%) |
|
| |
4,772 |
|
|
NU
Holdings Ltd., Cl A1 |
|
|
79,392 |
|
|
|
79,883 |
|
|
|
|
| |
| |
|
|
|
|
|
|
|
|
| Canada (5.71%) |
|
| |
2,678 |
|
|
Brookfield
Corp., Cl A |
|
|
123,081 |
|
|
|
122,894 |
|
| |
27 |
|
|
Constellation
Software, Inc. |
|
|
65,460 |
|
|
|
64,943 |
|
|
|
|
| |
| |
|
|
|
|
|
|
|
| |
Total
Canada |
|
|
188,541 |
|
|
|
187,837 |
|
|
|
| |
|
|
|
|
|
|
|
|
| China (2.48%) |
|
| |
1,064 |
|
|
Tencent
Holdings Limited, ADR |
|
|
82,749 |
|
|
|
81,449 |
|
|
|
|
| |
| |
|
|
|
|
|
|
|
|
| France (4.38%) |
|
| |
38 |
|
|
Hermes
International SCA |
|
|
94,239 |
|
|
|
94,764 |
|
| |
65 |
|
|
LVMH
Moët Hennessy Louis Vuitton SE |
|
|
48,063 |
|
|
|
49,270 |
|
|
|
|
| |
| |
|
|
|
|
|
|
|
| |
Total
France |
|
|
142,302 |
|
|
|
144,034 |
|
|
|
| |
|
|
|
|
|
|
|
|
| India (3.51%) |
|
| |
3,160 |
|
|
HDFC
Bank Ltd., ADR |
|
|
113,964 |
|
|
|
115,466 |
|
|
|
|
| |
| |
|
|
|
|
|
|
|
|
| Israel (0.99%) |
|
| |
313 |
|
|
Wix.com
Ltd.1 |
|
|
32,505 |
|
|
|
32,518 |
|
|
|
|
| |
| |
|
|
|
|
|
|
|
|
| Italy (1.01%) |
|
| |
90 |
|
|
Ferrari
NV |
|
|
33,656 |
|
|
|
33,260 |
|
|
|
|
| |
| |
|
|
|
|
|
|
|
|
| Japan (2.61%) |
|
| |
2,492 |
|
|
Ajinomoto
Co., Inc. |
|
|
53,550 |
|
|
|
52,771 |
|
| |
91 |
|
|
Keyence
Corporation |
|
|
33,334 |
|
|
|
32,928 |
|
|
|
|
| |
| |
|
|
|
|
|
|
|
| |
Total
Japan |
|
|
86,884 |
|
|
|
85,699 |
|
|
|
| |
|
|
|
|
|
|
|
|
| Korea, Republic of (1.05%) |
|
| |
1,460 |
|
|
Coupang,
Inc.1 |
|
|
35,419 |
|
|
|
34,441 |
|
|
|
|
| |
| |
|
|
|
|
|
|
|
| Netherlands (3.03%) |
|
| |
93 |
|
|
ASML
Holding N.V. |
|
|
99,304 |
|
|
|
99,497 |
|
|
|
|
| |
| |
|
|
|
|
|
|
|
|
| Poland (1.79%) |
|
| |
4,799 |
|
|
InPost
SA1 |
|
|
57,898 |
|
|
|
59,049 |
|
|
|
|
| |
| |
|
|
|
|
|
|
|
|
| Sweden (6.97%) |
|
| |
4,055 |
|
|
Atlas
Copco AB, Cl A |
|
|
72,536 |
|
|
|
73,137 |
|
| |
2,534 |
|
|
Indutrade
AB |
|
|
65,390 |
|
|
|
66,168 |
|
| |
2,352 |
|
|
Lifco
AB, Cl B |
|
|
89,426 |
|
|
|
89,926 |
|
|
|
|
| |
| |
|
|
|
|
|
|
|
| |
Total
Sweden |
|
|
227,352 |
|
|
|
229,231 |
|
|
|
| |
|
|
|
|
|
|
|
|
| Taiwan (6.12%) |
|
| |
662 |
|
|
Taiwan
Semiconductor
Manufacturing Co., Ltd., ADR |
|
|
194,966 |
|
|
|
201,175 |
|
|
|
|
| |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Shares |
|
|
|
|
Cost |
|
|
Value |
|
| Common Stocks (continued) |
|
|
| United States (55.74%) |
|
| |
523 |
|
|
Alphabet,
Inc., Cl C |
|
$
|
162,883 |
|
|
$
|
164,117 |
|
| |
857 |
|
|
Amazon.com,
Inc.1 |
|
|
196,093 |
|
|
|
197,813 |
|
| |
298 |
|
|
CME
Group, Inc. |
|
|
81,668 |
|
|
|
81,378 |
|
| |
92 |
|
|
Eli
Lilly & Co. |
|
|
97,554 |
|
|
|
98,871 |
|
| |
262 |
|
|
HEICO
Corp., Cl A |
|
|
65,913 |
|
|
|
66,137 |
|
| |
261 |
|
|
Hilton
Worldwide Holdings, Inc. |
|
|
75,316 |
|
|
|
74,972 |
|
| |
485 |
|
|
KKR &
Co., Inc. |
|
|
64,008 |
|
|
|
61,828 |
|
| |
119 |
|
|
LPL
Financial Holdings, Inc. |
|
|
44,006 |
|
|
|
42,503 |
|
| |
171 |
|
|
Meta
Platforms, Inc., Cl A |
|
|
111,860 |
|
|
|
112,875 |
|
| |
80 |
|
|
Monolithic
Power Systems, Inc. |
|
|
75,001 |
|
|
|
72,509 |
|
| |
117 |
|
|
MSCI,
Inc. |
|
|
66,657 |
|
|
|
67,126 |
|
| |
1,104 |
|
|
NVIDIA
Corp. |
|
|
200,864 |
|
|
|
205,896 |
|
| |
260 |
|
|
S&P
Global, Inc. |
|
|
134,101 |
|
|
|
135,873 |
|
| |
115 |
|
|
Thermo
Fisher Scientific, Inc. |
|
|
66,262 |
|
|
|
66,637 |
|
| |
67 |
|
|
TransDigm
Group, Inc.1 |
|
|
86,926 |
|
|
|
89,100 |
|
| |
559 |
|
|
Visa,
Inc., Cl A |
|
|
196,140 |
|
|
|
196,047 |
|
| |
94 |
|
|
Watsco,
Inc. |
|
|
32,927 |
|
|
|
31,673 |
|
| |
364 |
|
|
Welltower,
Inc. |
|
|
68,297 |
|
|
|
67,562 |
|
|
|
|
| |
| |
|
|
|
|
|
|
|
| |
Total
United States |
|
|
1,826,476 |
|
|
|
1,832,917 |
|
|
|
| |
|
|
|
|
|
|
|
| |
Total Investments
(99.53%) |
|
$ |
3,257,697 |
|
|
|
3,272,855 |
|
|
|
|
| |
| |
|
|
|
|
|
| |
| |
Cash and Other
Assets Less Liabilities (0.47%) |
|
|
|
| |
|
15,428 |
|
|
|
|
| |
| |
|
|
| |
|
|
|
| |
Net
Assets |
|
|
|
| |
$ |
3,288,283 |
|
|
|
|
| |
| |
|
|
| |
|
|
|
| % |
Represents
percentage of net assets. |
| 1 |
Non-income producing securities.
|
| ADR |
American
Depositary Receipt. |
All
securities are Level 1, unless otherwise noted.
|
|
|
|
| |
Summary of
Investments by Sector
as of December 31, 2025 |
|
Percentage of
Net
Assets |
|
|
| |
|
Financials |
|
|
27.5 |
% |
|
| |
|
Information
Technology |
|
|
21.6 |
% |
|
| |
|
Consumer
Discretionary |
|
|
16.4 |
% |
|
| |
|
Industrials |
|
|
14.4 |
% |
|
| |
|
Communication
Services |
|
|
10.9 |
% |
|
| |
|
Health
Care |
|
|
5.0 |
% |
|
| |
|
Real
Estate |
|
|
2.1 |
% |
|
| |
|
Consumer
Staples |
|
|
1.6 |
% |
|
Cash
and Cash Equivalents* |
|
|
0.5 |
% |
| |
|
|
100.0 |
%** |
| * |
Includes
other assets and liabilities-net.
|
| ** |
Individual
weights may not sum to 100% due to rounding.
|
|
|
| |
| See Notes to
Financial Statements. |
|
3 |
|
|
| |
| Baron SMID Cap ETF |
|
December 31,
2025 |
PORTFOLIO OF INVESTMENTS
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Shares |
|
|
|
|
Cost |
|
|
Value |
|
| Common Stocks (96.94%) |
|
| Communication Services (6.27%) |
|
|
|
|
| |
Interactive
Media & Services (1.15%) |
|
| |
793 |
|
|
Reddit,
Inc., Cl A1 |
|
$ |
183,973 |
|
|
$ |
182,287 |
|
|
|
|
| |
Movies &
Entertainment (5.12%) |
|
| |
4,756 |
|
|
Liberty
Live Holdings, Inc., Cl C1 |
|
|
397,943 |
|
|
|
395,509 |
|
| |
4,686 |
|
|
Liberty
Media Corporation-Liberty
Formula One, Cl A 1 |
|
|
414,229 |
|
|
|
418,835 |
|
|
|
|
| |
| |
|
|
|
|
|
|
|
|
|
| |
|
812,172 |
|
|
|
814,344 |
|
|
|
| |
|
|
|
|
|
|
|
| |
Total
Communication Services |
|
|
996,145 |
|
|
|
996,631 |
|
|
|
| |
|
|
|
|
|
|
|
|
| Consumer Discretionary (11.57%) |
|
|
|
|
| |
Casinos &
Gaming (4.50%) |
|
| |
1,852 |
|
|
Flutter
Entertainment PLC1,2 |
|
|
403,824 |
|
|
|
398,254 |
|
| |
2,640 |
|
|
Wynn
Resorts Ltd. |
|
|
325,580 |
|
|
|
317,671 |
|
|
|
|
| |
| |
|
|
|
|
|
|
|
|
|
| |
|
729,404 |
|
|
|
715,925 |
|
|
|
|
| |
Distributors
(1.24%) |
|
| |
859 |
|
|
Pool
Corp. |
|
|
198,826 |
|
|
|
196,496 |
|
|
|
|
| |
Hotels,
Resorts & Cruise Lines (1.68%) |
|
| |
932 |
|
|
Hilton
Worldwide Holdings, Inc. |
|
|
271,424 |
|
|
|
267,717 |
|
|
|
|
| |
Restaurants
(4.15%) |
|
| |
8,912 |
|
|
Chipotle
Mexican Grill, Inc.1 |
|
|
329,613 |
|
|
|
329,744 |
|
| |
1,387 |
|
|
Wingstop,
Inc. |
|
|
339,298 |
|
|
|
330,786 |
|
|
|
|
| |
| |
|
|
|
|
|
|
|
|
|
| |
|
668,911 |
|
|
|
660,530 |
|
|
|
| |
|
|
|
|
|
|
|
| |
Total
Consumer Discretionary |
|
|
1,868,565 |
|
|
|
1,840,668 |
|
|
|
| |
|
|
|
|
|
|
|
|
| Financials (8.46%) |
|
|
|
|
| |
Asset
Management &
Custody Banks (1.78%) |
|
| |
2,113 |
|
|
Hamilton
Lane, Inc., Cl A |
|
|
287,300 |
|
|
|
283,797 |
|
|
|
|
| |
Financial
Exchanges & Data (3.24%) |
|
| |
527 |
|
|
MSCI,
Inc. |
|
|
304,510 |
|
|
|
302,356 |
|
| |
1,980 |
|
|
Tradeweb
Markets, Inc., Cl A |
|
|
212,009 |
|
|
|
212,929 |
|
|
|
|
| |
| |
|
|
|
|
|
|
|
|
|
| |
|
516,519 |
|
|
|
515,285 |
|
|
|
|
| |
Insurance
Brokers (1.50%) |
|
| |
4,621 |
|
|
Ryan
Specialty Holdings, Inc. |
|
|
241,862 |
|
|
|
238,582 |
|
|
|
|
| |
Investment
Banking &
Brokerage (1.94%) |
|
| |
863 |
|
|
LPL
Financial Holdings, Inc. |
|
|
315,343 |
|
|
|
308,238 |
|
|
|
|
| |
| |
|
|
|
|
|
|
|
| |
Total
Financials |
|
|
1,361,024 |
|
|
|
1,345,902 |
|
|
|
| |
|
|
|
|
|
|
|
|
| Health Care (17.35%) |
|
|
|
|
| |
Biotechnology
(2.57%) |
|
| |
1,980 |
|
|
Arcellx,
Inc.1 |
|
|
129,292 |
|
|
|
129,096 |
|
| |
332 |
|
|
argenx
SE, ADR1,2 |
|
|
279,289 |
|
|
|
279,195 |
|
|
|
|
| |
| |
|
|
|
|
|
|
|
|
|
| |
|
408,581 |
|
|
|
408,291 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Shares |
|
|
|
|
Cost |
|
|
Value |
|
| Common Stocks (continued) |
|
|
| Health Care
(continued) |
|
|
|
|
| |
Health
Care Equipment (5.64%) |
|
| |
1,386 |
|
|
Insulet
Corp.1 |
|
$ |
399,980 |
|
|
$ |
393,956 |
|
| |
1,652 |
|
|
Masimo
Corp.1 |
|
|
218,504 |
|
|
|
214,859 |
|
| |
926 |
|
|
Penumbra,
Inc.1 |
|
|
290,715 |
|
|
|
287,903 |
|
|
|
|
| |
| |
|
|
|
|
|
|
|
|
|
| |
|
909,199 |
|
|
|
896,718 |
|
|
|
|
| |
Life
Sciences Tools & Services (9.14%) |
|
| |
3,035 |
|
|
Exact
Sciences Corp.1,3 |
|
|
309,067 |
|
|
|
308,235 |
|
| |
1,652 |
|
|
Natera,
Inc.1,3 |
|
|
380,187 |
|
|
|
378,457 |
|
| |
2,246 |
|
|
Repligen
Corp.1 |
|
|
368,057 |
|
|
|
368,029 |
|
| |
13,263 |
|
|
Stevanato
Group SpA2 |
|
|
274,133 |
|
|
|
266,852 |
|
| |
2,244 |
|
|
Tempus
AI, Inc., Cl A1 |
|
|
140,353 |
|
|
|
132,508 |
|
|
|
|
| |
| |
|
|
|
|
|
|
|
|
|
| |
|
1,471,797 |
|
|
|
1,454,081 |
|
|
|
| |
|
|
|
|
|
|
|
| |
Total
Health Care |
|
|
2,789,577 |
|
|
|
2,759,090 |
|
|
|
| |
|
|
|
|
|
|
|
|
| Industrials
(21.73%) |
|
|
|
|
| |
Aerospace &
Defense (11.85%) |
|
| |
270 |
|
|
Axon
Enterprise, Inc.1 |
|
|
155,111 |
|
|
|
153,341 |
|
| |
859 |
|
|
BWX
Technologies, Inc. |
|
|
150,053 |
|
|
|
148,470 |
|
| |
5,015 |
|
|
Karman
Holdings, Inc.1 |
|
|
376,060 |
|
|
|
366,947 |
|
| |
3,299 |
|
|
Kratos
Defense & Security Solutions, Inc.1 |
|
|
251,422 |
|
|
|
250,427 |
|
| |
6,139 |
|
|
Loar
Holdings, Inc.1 |
|
|
420,194 |
|
|
|
417,452 |
|
| |
5,081 |
|
|
Mercury
Systems, Inc.1 |
|
|
375,772 |
|
|
|
370,964 |
|
| |
133 |
|
|
TransDigm
Group, Inc.1 |
|
|
173,474 |
|
|
|
176,870 |
|
|
|
|
| |
| |
|
|
|
|
|
|
|
|
|
| |
|
1,902,086 |
|
|
|
1,884,471 |
|
|
|
|
| |
Environmental &
Facilities Services (2.09%) |
|
| |
5,546 |
|
|
Rollins,
Inc. |
|
|
335,684 |
|
|
|
332,871 |
|
|
|
|
| |
Industrial
Machinery &
Supplies & Components (3.17%) |
|
| |
1,386 |
|
|
Enpro,
Inc. |
|
|
302,639 |
|
|
|
296,784 |
|
| |
461 |
|
|
RBC
Bearings, Inc.1 |
|
|
210,099 |
|
|
|
206,727 |
|
|
|
|
| |
| |
|
|
|
|
|
|
|
|
|
| |
|
512,738 |
|
|
|
503,511 |
|
|
|
|
| |
Research &
Consulting Services (2.45%) |
|
| |
4,620 |
|
|
Booz
Allen Hamilton Holding Corp. |
|
|
396,029 |
|
|
|
389,743 |
|
|
|
|
| |
Trading
Companies & Distributors (2.17%) |
|
| |
2,772 |
|
|
SiteOne
Landscape Supply, Inc.1 |
|
|
351,529 |
|
|
|
345,280 |
|
|
|
|
| |
| |
|
|
|
|
|
|
|
| |
Total
Industrials |
|
|
3,498,066 |
|
|
|
3,455,876 |
|
|
|
| |
|
|
|
|
|
|
|
| Information
Technology (29.66%) |
|
|
|
|
| |
Application
Software (14.49%) |
|
| |
15,247 |
|
|
Clearwater
Analytics Holdings, Inc., Cl A1 |
|
|
358,092 |
|
|
|
367,758 |
|
| |
197 |
|
|
Fair
Isaac Corp.1 |
|
|
349,470 |
|
|
|
333,052 |
|
| |
8,447 |
|
|
Gitlab,
Inc., Cl A1,3 |
|
|
323,030 |
|
|
|
317,016 |
|
| |
1,586 |
|
|
Guidewire
Software, Inc.1 |
|
|
319,504 |
|
|
|
318,802 |
|
| |
4,226 |
|
|
Procore
Technologies, Inc. 1 |
|
|
312,644 |
|
|
|
307,399 |
|
| |
8,513 |
|
|
Samsara,
Inc., Cl A1 |
|
|
315,391 |
|
|
|
301,786 |
|
| |
3,367 |
|
|
ServiceTitan,
Inc., Cl A1 |
|
|
361,448 |
|
|
|
358,585 |
|
|
|
|
| |
| |
|
|
|
|
|
|
|
|
|
| |
|
2,339,579 |
|
|
|
2,304,398 |
|
|
|
|
| |
Electronic
Components (2.91%) |
|
| |
2,507 |
|
|
Coherent
Corp. 1 |
|
|
465,440 |
|
|
|
462,717 |
|
|
|
|
| |
Semiconductors
(3.28%) |
|
| |
3,827 |
|
|
Lattice
Semiconductor Corp.1 |
|
|
285,238 |
|
|
|
281,590 |
|
| |
266 |
|
|
Monolithic
Power Systems, Inc. |
|
|
248,371 |
|
|
|
241,092 |
|
|
|
|
| |
| |
|
|
|
|
|
|
|
|
|
| |
|
533,609 |
|
|
|
522,682 |
|
|
|
| |
| 4 |
|
See Notes to Financial
Statements. |
|
|
| |
| December 31, 2025 |
|
Baron SMID Cap
ETF |
PORTFOLIO OF INVESTMENTS
(Continued)
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Shares |
|
|
|
|
Cost |
|
|
Value |
|
| Common Stocks (continued) |
|
| Information Technology
(continued) |
|
|
|
|
| |
Systems
Software (8.98%) |
|
| |
8,778 |
|
|
Dynatrace,
Inc.1,3 |
|
$
|
388,870 |
|
|
$
|
380,439 |
|
| |
13,200 |
|
|
Netskope,
Inc., Cl A1 |
|
|
245,614 |
|
|
|
231,528 |
|
| |
4,752 |
|
|
Rubrik,
Inc., CL A1 |
|
|
370,909 |
|
|
|
363,433 |
|
| |
9,371 |
|
|
SentinelOne,
Inc., Cl A1 |
|
|
140,282 |
|
|
|
140,565 |
|
| |
1,386 |
|
|
Zscaler,
Inc.1 |
|
|
317,653 |
|
|
|
311,739 |
|
|
|
|
| |
| |
|
|
|
|
|
|
|
|
|
| |
|
1,463,328 |
|
|
|
1,427,704 |
|
|
|
| |
|
|
|
|
|
|
|
| |
Total
Information Technology |
|
|
4,801,956 |
|
|
|
4,717,501 |
|
|
|
| |
|
|
|
|
|
|
|
| Materials (1.90%) |
|
|
|
|
| |
Construction
Materials (1.90%) |
|
| |
1,058 |
|
|
Vulcan
Materials Co. |
|
|
308,907 |
|
|
|
301,763 |
|
|
|
|
| |
| |
|
|
|
|
|
|
|
| |
Total Investments
(96.94%) |
|
$ |
15,624,240 |
|
|
|
15,417,431 |
|
|
|
| |
|
|
|
|
|
| |
| |
Cash and Other
Assets Less Liabilities (3.06%) |
|
|
|
| |
|
487,421 |
|
|
|
| |
|
|
| |
|
|
|
| |
Net
Assets |
|
|
|
| |
$ |
15,904,852 |
|
|
|
| |
|
|
| |
|
|
|
| % |
Represents
percentage of net assets. |
| 1 |
Non-income producing securities.
|
| 3 |
Sector
levels are provided from the Global Industry Classification Standard
(GICS), developed and exclusively owned by MSCI Inc. (MSCI) and Standard
and Poor’s Financial Services LLC (S&P). The Adviser has
reclassified/classified certain securities in or out of this sub-industry. Such
reclassifications/classifications are not supported by S&P or MSCI
(unaudited). |
| ADR |
American
Depositary Receipt. |
All
securities are Level 1, unless otherwise noted.
|
|
| |
| See Notes to
Financial Statements. |
|
5 |
|
|
| |
| Baron Financials ETF |
|
December 31,
2025 |
PORTFOLIO OF INVESTMENTS
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Shares |
|
|
|
|
Cost |
|
|
Value |
|
| Common Stocks (99.81%) |
|
| Consumer Discretionary (3.91%) |
|
|
|
|
| |
Broadline
Retail (3.91%) |
|
| |
1,100 |
|
|
MercadoLibre,
Inc.1 |
|
$ |
1,546,900 |
|
|
$ |
2,215,686 |
|
|
|
|
| |
| |
|
|
|
|
|
|
|
|
| Financials (75.34%) |
|
|
|
|
| |
Asset
Management & Custody Banks (6.09%) |
|
| |
1,052 |
|
|
Blackrock,
Inc. |
|
|
780,323 |
|
|
|
1,125,998 |
|
| |
18,200 |
|
|
KKR &
Co., Inc. |
|
|
2,032,883 |
|
|
|
2,320,136 |
|
|
|
|
| |
| |
|
|
|
|
|
|
|
|
|
| |
|
2,813,206 |
|
|
|
3,446,134 |
|
|
|
|
| |
Consumer
Finance (2.63%) |
|
| |
6,135 |
|
|
Capital
One Financial Corp. |
|
|
1,364,230 |
|
|
|
1,486,879 |
|
|
|
|
| |
Diversified
Banks (3.48%) |
|
| |
117,808 |
|
|
NU
Holdings Ltd., Cl A1,2 |
|
|
955,103 |
|
|
|
1,972,106 |
|
|
|
|
| |
Diversified
Financial Services (3.32%) |
|
| |
12,984 |
|
|
Apollo
Global Management, Inc. |
|
|
938,245 |
|
|
|
1,879,564 |
|
|
|
|
| |
Financial
Exchanges & Data (18.15%) |
|
| |
5,549 |
|
|
CME
Group, Inc. |
|
|
1,206,363 |
|
|
|
1,515,321 |
|
| |
959 |
|
|
FactSet
Research Systems, Inc. |
|
|
385,140 |
|
|
|
278,292 |
|
| |
3,680 |
|
|
Moody’s
Corp. |
|
|
1,297,116 |
|
|
|
1,879,928 |
|
| |
1,338 |
|
|
Morningstar,
Inc. |
|
|
269,362 |
|
|
|
290,761 |
|
| |
2,946 |
|
|
MSCI,
Inc. |
|
|
1,231,054 |
|
|
|
1,690,208 |
|
| |
6,176 |
|
|
S&P
Global, Inc. |
|
|
2,415,662 |
|
|
|
3,227,516 |
|
| |
12,959 |
|
|
Tradeweb
Markets, Inc., Cl A |
|
|
1,051,528 |
|
|
|
1,393,611 |
|
|
|
|
| |
| |
|
|
|
|
|
|
|
|
|
| |
|
7,856,225 |
|
|
|
10,275,637 |
|
|
|
|
| |
Insurance
Brokers (1.92%) |
|
| |
9,000 |
|
|
Accelerant
Holdings, Cl A1,2 |
|
|
188,062 |
|
|
|
147,150 |
|
| |
10,225 |
|
|
Baldwin
Insurance Group, Inc., Cl A1 |
|
|
292,452 |
|
|
|
245,707 |
|
| |
8,640 |
|
|
Neptune
Insurance Holdings, Inc., Cl A1,3 |
|
|
174,352 |
|
|
|
251,942 |
|
| |
15,335 |
|
|
TWFG,
Inc.1 |
|
|
269,291 |
|
|
|
441,188 |
|
|
|
|
| |
| |
|
|
|
|
|
|
|
|
|
| |
|
924,157 |
|
|
|
1,085,987 |
|
|
|
|
| |
Investment
Banking & Brokerage (19.21%) |
|
| |
8,268 |
|
|
Houlihan
Lokey, Inc. |
|
|
604,513 |
|
|
|
1,440,203 |
|
| |
29,467 |
|
|
Interactive
Brokers Group, Inc., Cl A |
|
|
617,984 |
|
|
|
1,895,023 |
|
| |
6,743 |
|
|
LPL
Financial Holdings, Inc. |
|
|
1,257,951 |
|
|
|
2,408,397 |
|
| |
6,600 |
|
|
Morgan
Stanley |
|
|
1,190,535 |
|
|
|
1,171,698 |
|
| |
15,950 |
|
|
Robinhood
Markets, Inc., Cl A1 |
|
|
755,649 |
|
|
|
1,803,945 |
|
| |
21,600 |
|
|
The
Charles Schwab Corp. |
|
|
1,717,718 |
|
|
|
2,158,056 |
|
|
|
|
| |
| |
|
|
|
|
|
|
|
|
|
| |
|
6,144,350 |
|
|
|
10,877,322 |
|
|
|
|
| |
Life &
Health Insurance (1.09%) |
|
| |
2,400 |
|
|
Primerica,
Inc. |
|
|
614,186 |
|
|
|
620,064 |
|
|
|
|
| |
Property &
Casualty Insurance (4.74%) |
|
| |
11,184 |
|
|
Arch
Capital Group Ltd.1,2 |
|
|
911,974 |
|
|
|
1,072,769 |
|
| |
13,290 |
|
|
Ategrity
Specialty Holdings LLC1 |
|
|
226,997 |
|
|
|
279,223 |
|
| |
1,315 |
|
|
Kinsale
Capital Group, Inc. |
|
|
232,674 |
|
|
|
514,323 |
|
| |
3,580 |
|
|
The
Progressive Corp. |
|
|
414,142 |
|
|
|
815,237 |
|
|
|
|
| |
| |
|
|
|
|
|
|
|
|
|
| |
|
1,785,787 |
|
|
|
2,681,552 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Shares |
|
|
|
|
Cost |
|
|
Value |
|
| Common Stocks (continued) |
|
|
| Financials
(continued) |
|
|
|
|
| |
Transaction &
Payment
Processing Services (14.71%) |
|
| |
6,933 |
|
|
Block,
Inc.1 |
|
$ |
801,012 |
|
|
$ |
451,269 |
|
| |
5,110 |
|
|
Jack
Henry & Associates, Inc. |
|
|
839,738 |
|
|
|
932,473 |
|
| |
5,315 |
|
|
Mastercard,
Incorporated, Cl A |
|
|
1,837,679 |
|
|
|
3,034,227 |
|
| |
8,690 |
|
|
Visa,
Inc., Cl A |
|
|
1,830,372 |
|
|
|
3,047,670 |
|
| |
71,570 |
|
|
Wise
PLC, Cl A (United Kingdom)1,2 |
|
|
724,541 |
|
|
|
859,573 |
|
|
|
|
| |
| |
|
|
|
|
|
|
|
|
|
| |
|
6,033,342 |
|
|
|
8,325,212 |
|
|
|
| |
|
|
|
|
|
|
|
| |
Total
Financials |
|
|
29,428,831 |
|
|
|
42,650,457 |
|
|
|
| |
|
|
|
|
|
|
|
|
| Industrials
(4.74%) |
|
|
|
|
| |
Research &
Consulting Services (4.74%) |
|
| |
2,865 |
|
|
Equifax,
Inc. |
|
|
611,607 |
|
|
|
621,648 |
|
| |
8,050 |
|
|
TransUnion |
|
|
712,632 |
|
|
|
690,287 |
|
| |
6,135 |
|
|
Verisk
Analytics, Inc. |
|
|
1,216,768 |
|
|
|
1,372,338 |
|
|
|
|
| |
| |
|
|
|
|
|
|
|
| |
Total
Industrials |
|
|
2,541,007 |
|
|
|
2,684,273 |
|
|
|
| |
|
|
|
|
|
|
|
|
| Information
Technology (15.82%) |
|
|
|
|
| |
Application
Software (13.85%) |
|
| |
20,119 |
|
|
Alkami
Technology, Inc.1 |
|
|
536,454 |
|
|
|
464,145 |
|
| |
20,450 |
|
|
Clearwater
Analytics Holdings, Inc., Cl A1 |
|
|
494,864 |
|
|
|
493,254 |
|
| |
1,167 |
|
|
Fair
Isaac Corp. 1 |
|
|
503,525 |
|
|
|
1,972,953 |
|
| |
8,688 |
|
|
Guidewire
Software, Inc.1 |
|
|
1,006,139 |
|
|
|
1,746,375 |
|
| |
3,680 |
|
|
Intuit,
Inc. |
|
|
1,341,494 |
|
|
|
2,437,706 |
|
| |
6,850 |
|
|
ServiceTitan,
Inc., Cl A1 |
|
|
585,270 |
|
|
|
729,525 |
|
|
|
|
| |
| |
|
|
|
|
|
|
|
|
|
|
| |
| |
|
4,467,746 |
|
|
|
7,843,958 |
|
|
|
|
| |
Internet
Services &
Infrastructure (1.97%) |
|
| |
6,916 |
|
|
Shopify,
Inc., Cl A1,2 |
|
|
1,020,913 |
|
|
|
1,113,269 |
|
|
|
|
| |
| |
|
|
|
|
|
|
|
| |
Total
Information Technology |
|
|
5,488,659 |
|
|
|
8,957,227 |
|
|
|
| |
|
|
|
|
|
|
|
| |
Total Investments
(99.81%) |
|
$ |
39,005,397 |
|
|
|
56,507,643 |
|
|
|
| |
|
|
|
|
|
| |
| |
Cash and Other
Assets Less Liabilities (0.19%) |
|
|
|
| |
|
105,690 |
|
|
|
| |
|
|
| |
|
|
|
| |
Net
Assets |
|
|
|
| |
$ |
56,613,333 |
|
|
|
| |
|
|
| |
|
|
|
| % |
Represents
percentage of net assets. |
| 1 |
Non-income producing securities.
|
| 3 |
Sector
levels are provided from the Global Industry Classification Standard
(GICS), developed and exclusively owned by MSCI Inc. (MSCI) and Standard
and Poor’s Financial Services LLC (S&P). The Adviser has
reclassified/classified certain securities in or out of this sub-industry. Such
reclassifications/classifications are not supported by S&P or MSCI
(unaudited). |
All
securities are Level 1, unless otherwise noted.
|
|
| |
| 6 |
|
See Notes to Financial
Statements. |
|
|
| |
| December 31, 2025 |
|
Baron Technology
ETF |
PORTFOLIO OF INVESTMENTS
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Shares |
|
|
|
|
Cost |
|
|
Value |
|
| Common Stocks (99.12%) |
|
| Communication Services (6.39%) |
|
|
|
|
| |
Interactive
Media & Services (2.17%) |
|
|
|
| |
|
| |
| |
4,909 |
|
|
Meta
Platforms, Inc., Cl A |
|
$ |
3,505,911 |
|
|
$ |
3,240,382 |
|
|
|
|
| |
Movies &
Entertainment (4.22%) |
|
| |
10,824 |
|
|
Spotify
Technology SA1,2 |
|
|
4,489,938 |
|
|
|
6,285,605 |
|
|
|
|
| |
| |
|
|
|
|
|
|
|
| |
Total
Communication Services |
|
|
7,995,849 |
|
|
|
9,525,987 |
|
|
|
|
| |
| |
|
|
|
|
|
|
|
|
| Consumer Discretionary (14.71%) |
|
|
|
|
| |
Automobile
Manufacturers (5.64%) |
|
| |
18,714 |
|
|
Tesla,
Inc. 1 |
|
|
5,933,336 |
|
|
|
8,416,060 |
|
|
|
|
| |
Broadline
Retail (7.86%) |
|
| |
50,780 |
|
|
Amazon.com,
Inc.1 |
|
|
10,020,833 |
|
|
|
11,721,039 |
|
|
|
|
| |
Casinos &
Gaming (1.21%) |
|
| |
52,319 |
|
|
DraftKings,
Inc., Cl A1 |
|
|
1,612,325 |
|
|
|
1,802,913 |
|
|
|
|
| |
| |
|
|
|
|
|
|
|
| |
Total
Consumer Discretionary |
|
|
17,566,494 |
|
|
|
21,940,012 |
|
|
|
|
| |
| |
|
|
|
|
|
|
|
|
| Health Care (1.93%) |
|
|
|
|
| |
Health
Care Services (1.53%) |
|
| |
49,043 |
|
|
Hinge
Health, Inc., Cl A1 |
|
|
1,982,587 |
|
|
|
2,278,048 |
|
|
|
|
| |
Health
Care Technology (0.40%) |
|
| |
20,642 |
|
|
HeartFlow,
Inc.1 |
|
|
502,461 |
|
|
|
601,714 |
|
|
|
|
| |
| |
|
|
|
|
|
|
|
| |
Total
Health Care |
|
|
2,485,048 |
|
|
|
2,879,762 |
|
|
|
|
| |
| |
|
|
|
|
|
|
|
|
| Industrials (5.91%) |
|
|
|
|
| |
Aerospace &
Defense (3.79%) |
|
| |
6,968 |
|
|
Axon
Enterprise, Inc.1 |
|
|
3,727,982 |
|
|
|
3,957,336 |
|
| |
24,981 |
|
|
Loar
Holdings, Inc.1 |
|
|
1,855,869 |
|
|
|
1,698,708 |
|
|
|
|
| |
| |
|
|
|
|
|
|
|
|
|
| |
|
5,583,851 |
|
|
|
5,656,044 |
|
|
|
|
| |
Building
Products (0.90%) |
|
| |
17,584 |
|
|
AAON,
Inc. |
|
|
1,487,217 |
|
|
|
1,340,780 |
|
|
|
|
| |
Construction &
Engineering (1.22%) |
|
| |
4,309 |
|
|
Quanta
Services, Inc. |
|
|
1,523,523 |
|
|
|
1,818,657 |
|
|
|
|
| |
| |
|
|
|
|
|
|
|
| |
Total
Industrials |
|
|
8,594,591 |
|
|
|
8,815,481 |
|
|
|
|
| |
| |
|
|
|
|
|
|
|
| Information Technology (70.18%) |
|
|
|
|
| |
Application
Software (8.61%) |
|
| |
74,605 |
|
|
Clearwater
Analytics Holdings, Inc., Cl A1 |
|
|
1,571,836 |
|
|
|
1,799,473 |
|
| |
10,802 |
|
|
Guidewire
Software, Inc.1 |
|
|
2,049,466 |
|
|
|
2,171,310 |
|
| |
42,745 |
|
|
PAR
Technology Corp.1 |
|
|
2,074,809 |
|
|
|
1,550,789 |
|
| |
86,223 |
|
|
Samsara,
Inc., Cl A1 |
|
|
3,336,813 |
|
|
|
3,056,605 |
|
| |
9,583 |
|
|
ServiceNow,
Inc.1,3 |
|
|
1,531,710 |
|
|
|
1,468,020 |
|
| |
8,967 |
|
|
ServiceTitan,
Inc., Cl A1 |
|
|
835,727 |
|
|
|
954,985 |
|
| |
3,303 |
|
|
Synopsys,
Inc.1 |
|
|
1,479,979 |
|
|
|
1,551,485 |
|
| |
10,050 |
|
|
Via
Transportation, Inc., Cl A1 |
|
|
451,332 |
|
|
|
291,551 |
|
|
|
|
| |
| |
|
|
|
|
|
|
|
|
|
| |
|
13,331,672 |
|
|
|
12,844,218 |
|
|
|
|
| |
Communications
Equipment (4.59%) |
|
|
|
| |
|
| |
| |
13,020 |
|
|
Arista
Networks, Inc.1 |
|
|
1,825,470 |
|
|
|
1,706,010 |
|
| |
13,930 |
|
|
Lumentum
Holdings, Inc.1 |
|
|
2,775,424 |
|
|
|
5,134,459 |
|
|
|
|
| |
| |
|
|
|
|
|
|
|
|
|
| |
|
4,600,894 |
|
|
|
6,840,469 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Shares |
|
|
|
|
Cost |
|
|
Value |
|
| Common Stocks (continued) |
|
| Information Technology
(continued) |
|
|
|
|
| |
Electronic
Components (3.34%) |
|
|
|
| |
|
| |
| |
26,975 |
|
|
Coherent
Corp.1 |
|
$ |
3,379,691 |
|
|
$ |
4,978,776 |
|
|
|
|
| |
|
|
|
| |
Internet
Services & Infrastructure (2.98%) |
|
|
|
| |
|
| |
| |
62,648 |
|
|
GDS
Holdings Ltd., ADR1,2 |
|
|
1,462,546 |
|
|
|
2,186,415 |
|
| |
14,073 |
|
|
Shopify,
Inc., Cl A1,2 |
|
|
1,363,710 |
|
|
|
2,265,331 |
|
|
|
|
| |
| |
|
|
|
|
|
|
|
|
|
| |
|
2,826,256 |
|
|
|
4,451,746 |
|
|
|
|
| |
Semiconductor
Materials & Equipment (4.34%) |
|
|
|
| |
|
| |
| |
28,029 |
|
|
Lam
Research Corp. |
|
|
3,677,320 |
|
|
|
4,798,004 |
|
| |
5,118 |
|
|
Nova
Ltd.1,2 |
|
|
1,187,731 |
|
|
|
1,680,700 |
|
|
|
|
| |
| |
|
|
|
|
|
|
|
|
|
| |
|
4,865,051 |
|
|
|
6,478,704 |
|
|
|
|
| |
Semiconductors
(32.77%) |
|
|
|
| |
|
| |
| |
43,420 |
|
|
Broadcom,
Inc. |
|
|
10,475,419 |
|
|
|
15,027,662 |
|
| |
519,127 |
|
|
indie
Semiconductor, Inc., Cl A1 |
|
|
2,032,515 |
|
|
|
1,832,518 |
|
| |
6,351 |
|
|
Micron
Technology, Inc. |
|
|
1,484,875 |
|
|
|
1,812,639 |
|
| |
1,842 |
|
|
Monolithic
Power Systems, Inc. |
|
|
1,297,066 |
|
|
|
1,669,515 |
|
| |
94,055 |
|
|
NVIDIA
Corp. |
|
|
11,077,259 |
|
|
|
17,541,257 |
|
| |
36,167 |
|
|
Taiwan
Semiconductor Manufacturing Co., Ltd., ADR2 |
|
|
7,777,215 |
|
|
|
10,990,790 |
|
|
|
|
| |
| |
|
|
|
|
|
|
|
|
|
| |
|
34,144,349 |
|
|
|
48,874,381 |
|
|
|
|
| |
Systems
Software (10.94%) |
|
|
|
| |
|
| |
| |
10,096 |
|
|
Cloudflare,
Inc., Cl A1,3 |
|
|
1,255,715 |
|
|
|
1,990,426 |
|
| |
11,208 |
|
|
Datadog,
Inc., Cl A1,3 |
|
|
1,511,648 |
|
|
|
1,524,176 |
|
| |
15,253 |
|
|
Microsoft
Corporation |
|
|
6,672,214 |
|
|
|
7,376,656 |
|
| |
72,507 |
|
|
Netskope,
Inc., Cl A1 |
|
|
1,350,347 |
|
|
|
1,271,773 |
|
| |
8,003 |
|
|
Snowflake,
Inc., Cl A1,3 |
|
|
1,650,524 |
|
|
|
1,755,538 |
|
| |
10,691 |
|
|
Zscaler,
Inc. 1 |
|
|
2,492,739 |
|
|
|
2,404,620 |
|
|
|
|
| |
| |
|
|
|
|
|
|
|
|
|
|
| |
| |
|
14,933,187 |
|
|
|
16,323,189 |
|
|
|
|
| |
Technology
Hardware, Storage & Peripherals (2.61%) |
|
|
|
| |
|
| |
| |
14,293 |
|
|
Apple,
Inc. |
|
|
3,104,004 |
|
|
|
3,885,695 |
|
|
|
|
| |
| |
|
|
|
|
|
|
|
| |
Total
Information Technology |
|
|
81,185,104 |
|
|
|
104,677,178 |
|
|
|
|
| |
| |
|
|
|
|
|
|
|
| |
Total Investments
(99.12%) |
|
$ |
117,827,086 |
|
|
|
147,838,420 |
|
|
|
|
| |
| |
|
|
|
|
|
| |
| |
Cash and Other
Assets Less Liabilities (0.88%) |
|
|
|
| |
|
1,306,164 |
|
|
|
|
| |
| |
|
|
| |
|
|
|
| |
Net
Assets |
|
|
|
| |
$ |
149,144,584 |
|
|
|
|
| |
| |
|
|
| |
|
|
|
| % |
Represents
percentage of net assets. |
| 1 |
Non-income producing securities.
|
| 3 |
Sector
levels are provided from the Global Industry Classification Standard
(GICS), developed and exclusively owned by MSCI Inc. (MSCI) and Standard
and Poor’s Financial Services LLC (S&P). The Adviser has
reclassified/classified certain securities in or out of this sub-industry. Such
reclassifications/classifications are not supported by S&P or MSCI
(unaudited). |
| ADR |
American
Depositary Receipt. |
All
securities are Level 1, unless otherwise noted.
|
|
| |
| See Notes to
Financial Statements. |
|
7 |
|
|
| |
| Baron ETF Trust |
|
December 31,
2025 |
STATEMENTS OF ASSETS AND
LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| |
|
Baron
First
Principles
ETF |
|
|
Baron Global
Durable
Advantage
ETF |
|
|
Baron SMID
Cap ETF |
|
|
Baron
Financials
ETF |
|
|
Baron
Technology
ETF |
|
|
Assets: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
|
Investments
in securities, at value* |
|
$ |
70,086,105 |
|
|
$ |
3,272,855 |
|
|
$ |
15,417,431 |
|
|
$ |
56,507,643 |
|
|
$ |
147,838,420 |
|
|
Cash |
|
|
434,371 |
|
|
|
28,693 |
|
|
|
487,226 |
|
|
|
186,134 |
|
|
|
1,324,143 |
|
|
Dividends
and interest receivable |
|
|
33,467 |
|
|
|
147 |
|
|
|
709 |
|
|
|
7,125 |
|
|
|
29,255 |
|
|
Prepaid
expenses |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
153 |
|
|
|
154 |
|
|
Receivable
for capital shares sold |
|
|
3,737,160 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
501,110 |
|
|
Due
from investment adviser |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
14,667 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
74,291,103 |
|
|
|
3,301,695 |
|
|
|
15,905,366 |
|
|
|
56,701,055 |
|
|
|
149,707,749 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
|
Investment
advisory fees payable (Note 4) |
|
|
997 |
|
|
|
607 |
|
|
|
514 |
|
|
|
15,763 |
|
|
|
— |
|
|
Due
to custodian bank† |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
4,078 |
|
|
|
— |
|
|
Trustee
fees payable |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
286 |
|
|
|
— |
|
|
Payable
for securities purchased |
|
|
3,433,509 |
|
|
|
12,805 |
|
|
|
— |
|
|
|
— |
|
|
|
496,580 |
|
|
Other
accrued expenses and other payables |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
67,595 |
|
|
|
66,585 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
3,434,506 |
|
|
|
13,412 |
|
|
|
514 |
|
|
|
87,722 |
|
|
|
563,165 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Assets |
|
$ |
70,856,597 |
|
|
$ |
3,288,283 |
|
|
$ |
15,904,852 |
|
|
$ |
56,613,333 |
|
|
$ |
149,144,584 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Assets consist of: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
|
Paid-in capital |
|
$ |
71,362,329 |
|
|
$ |
3,273,282 |
|
|
$ |
16,118,330 |
|
|
$ |
45,630,016 |
|
|
$ |
121,449,899 |
|
|
Distributable
earnings (losses) |
|
|
(505,732 |
) |
|
|
15,001 |
|
|
|
(213,478 |
) |
|
|
10,983,317 |
|
|
|
27,694,685 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Assets |
|
$ |
70,856,597 |
|
|
$ |
3,288,283 |
|
|
$ |
15,904,852 |
|
|
$ |
56,613,333 |
|
|
$ |
149,144,584 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares
Outstanding ($0.001 par value; unlimited shares authorized) |
|
|
2,844,000 |
|
|
|
130,001 |
|
|
|
660,001 |
|
|
|
2,277,193 |
|
|
|
5,952,560 |
|
|
Net
Asset Value Per Share |
|
$ |
24.91 |
|
|
$ |
25.29 |
|
|
$ |
24.10 |
|
|
$ |
24.86 |
|
|
$ |
25.06 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*Total
investments, at cost |
|
$ |
70,422,084 |
|
|
$ |
3,257,697 |
|
|
$ |
15,624,240 |
|
|
$ |
39,005,397 |
|
|
$ |
117,827,086 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
†Foreign
currency, at cost: |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
(4,086 |
) |
|
$ |
— |
|
|
|
| |
| 8 |
|
See Notes to Financial
Statements. |
|
|
| |
| December 31, 2025 |
|
Baron ETF
Trust |
STATEMENTS OF OPERATIONS
|
|
FOR THE YEAR ENDED DECEMBER 31, 2025
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| |
|
Baron First
Principles ETF3 |
|
|
Baron
Global
Durable
Advantage ETF3 |
|
|
Baron
SMID Cap
ETF3 |
|
|
Baron
Financials ETF4 |
|
|
Baron
Technology ETF4 |
|
|
Investment
income(loss): |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
|
Income: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
|
Dividends1 |
|
$ |
33,466 |
|
|
$ |
217 |
|
|
$ |
709 |
|
|
$ |
420,608 |
|
|
$ |
224,443 |
|
|
Interest |
|
|
985 |
|
|
|
32 |
|
|
|
226 |
|
|
|
41,854 |
|
|
|
51,676 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
income |
|
|
34,451 |
|
|
|
249 |
|
|
|
935 |
|
|
|
462,462 |
|
|
|
276,119 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
|
Investment
advisory fees (Note 4) |
|
|
31,997 |
|
|
|
607 |
|
|
|
1,514 |
|
|
|
552,885 |
|
|
|
702,572 |
|
|
Distribution
fees (Note 4) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
17,599 |
|
|
|
56,833 |
|
|
Shareholder
servicing agent fees and expenses |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
30,290 |
|
|
|
32,286 |
|
|
Administration
fees |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
61,622 |
|
|
|
61,614 |
|
|
Professional
fees |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
40,544 |
|
|
|
46,436 |
|
|
Registration
and filing fees |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
25,870 |
|
|
|
45,780 |
|
|
Reports
to shareholders |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
15,702 |
|
|
|
21,200 |
|
|
Custodian
and fund accounting fees |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
12,689 |
|
|
|
16,454 |
|
|
Trustee
fees and expenses (Note 4) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,965 |
|
|
|
4,579 |
|
|
Insurance
expense |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
918 |
|
|
|
725 |
|
|
Line
of credit fees |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
580 |
|
|
|
729 |
|
|
Miscellaneous
expenses |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,607 |
|
|
|
15,813 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
operating expenses |
|
|
31,997 |
|
|
|
607 |
|
|
|
1,514 |
|
|
|
765,271 |
|
|
|
1,005,021 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense on borrowings |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
5,769 |
|
|
|
— |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
gross expenses |
|
|
31,997 |
|
|
|
607 |
|
|
|
1,514 |
|
|
|
771,040 |
|
|
|
1,005,021 |
|
|
Management
fees waived/expenses reimbursed (Note 4) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(93,513 |
) |
|
|
(113,450 |
) |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
net expenses |
|
|
31,997 |
|
|
|
607 |
|
|
|
1,514 |
|
|
|
677,527 |
|
|
|
891,571 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
investment income (loss) |
|
|
2,454 |
|
|
|
(358 |
) |
|
|
(579 |
) |
|
|
(215,065 |
) |
|
|
(615,452 |
) |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized
and unrealized gain (loss) on investments: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
|
Net
realized gain (loss) on investments sold — Unaffiliated investments |
|
|
(172,207 |
) |
|
|
— |
|
|
|
(6,669 |
) |
|
|
539,428 |
|
|
|
(1,469,795 |
)2 |
|
Redemption
in-kind |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
976,093 |
|
|
|
1,566,732 |
|
|
Net
realized gain (loss) on foreign currency transactions |
|
|
— |
|
|
|
(144 |
) |
|
|
— |
|
|
|
727 |
|
|
|
(27,265 |
) |
|
Voluntary
payment from Adviser (Note 5) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
83,210 |
|
|
Change
in net unrealized appreciation (depreciation) of: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
|
Investments
— Unaffiliated investments |
|
|
(335,979 |
) |
|
|
15,158 |
|
|
|
(206,809 |
) |
|
|
(1,087,104 |
) |
|
|
17,025,801 |
|
|
Foreign
currency translations |
|
|
— |
|
|
|
(13 |
) |
|
|
— |
|
|
|
9 |
|
|
|
10 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
gain (loss) on investments |
|
|
(508,186 |
) |
|
|
15,001 |
|
|
|
(213,478 |
) |
|
|
429,153 |
|
|
|
17,178,693 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
increase (decrease) in net assets resulting from operations |
|
$ |
(505,732 |
) |
|
$ |
14,643 |
|
|
$ |
(214,057 |
) |
|
$ |
214,088 |
|
|
$ |
16,563,241 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Net of foreign taxes
withheld on dividends of |
|
$ |
— |
|
|
$ |
9 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
18,775 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2 Net of realized
foreign capital gains tax of |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
18,271 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 3 |
For
the period December 12, 2025 (commencement of operations) to
December 31, 2025. |
| 4 |
After
the close of business on December 12, 2025, Baron FinTech Fund and Baron
Technology Fund (each a Predecessor Fund) were reorganized into Baron
Financials ETF and Baron Technology ETF, respectively. The amounts
disclosed for periods prior to the reorganization reflect those of the
respective Predecessor Fund, which did not operate under a unitary
management fee structure, as described in Note 5a. Refer to Note 1 in the
Notes to Financial Statements for additional information on the
reorganization. |
|
|
| |
| See Notes to
Financial Statements. |
|
9 |
|
|
| |
| Baron ETF Trust |
|
December 31,
2025 |
STATEMENTS OF CHANGES IN
NET ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
| |
| |
|
Baron First Principles |
|
|
Baron
Global
Durable
Advantage ETF |
|
|
Baron SMID
Cap ETF |
|
| |
|
For the Period
Ended
December 31,
20251 |
|
|
For the
Period
Ended
December 31,
20251 |
|
|
For the
Period
Ended
December 31,
20251 |
|
|
Increase
(Decrease) in Net Assets: |
|
|
|
| |
|
|
| |
|
| |
|
Operations: |
|
|
|
| |
|
|
| |
|
| |
|
Net
investment income (loss) |
|
$ |
2,454 |
|
|
$ |
(358 |
) |
|
$ |
(579 |
) |
|
Net
realized gain (loss) |
|
|
(172,207 |
) |
|
|
(144 |
) |
|
|
(6,669 |
) |
|
Change
in net unrealized appreciation (depreciation) |
|
|
(335,979 |
) |
|
|
15,145 |
|
|
|
(206,809 |
) |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
Increase
(decrease) in net assets resulting from operations |
|
|
(505,732 |
) |
|
|
14,643 |
|
|
|
(214,057 |
) |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
Distributions
to shareholders from (Note 8): |
|
|
|
| |
|
|
| |
|
| |
|
Distributable
earnings |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
Decrease
in net assets from distributions to shareholders |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
Capital
share transactions: |
|
|
|
| |
|
|
| |
|
| |
|
Proceeds
from the sale of shares |
|
|
104,107,341 |
|
|
|
3,273,640 |
|
|
|
16,118,909 |
|
|
Net
asset value of shares issued in reinvestment of distributions |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Cost
of shares redeemed |
|
|
(32,745,012 |
) |
|
|
— |
|
|
|
— |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
Increase
(decrease) in net assets derived from capital share transactions |
|
|
71,362,329 |
|
|
|
3,273,640 |
|
|
|
16,118,909 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
Net
increase (decrease) in net assets |
|
|
70,856,597 |
|
|
|
3,288,283 |
|
|
|
15,904,852 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
Net
Assets: |
|
|
|
| |
|
|
| |
|
| |
|
Beginning
of year |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
End
of year |
|
$ |
70,856,597 |
|
|
$ |
3,288,283 |
|
|
$ |
15,904,852 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
Capital
share transactions |
|
|
|
| |
|
|
| |
|
| |
|
Shares
sold |
|
|
4,154,000 |
|
|
|
130,001 |
|
|
|
660,001 |
|
|
Shares
redeemed |
|
|
(1,310,000 |
) |
|
|
— |
|
|
|
— |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
Net
increase (decrease) |
|
|
2,844,000 |
|
|
|
130,001 |
|
|
|
660,001 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| 1 |
For
the period December 12, 2025 (commencement of operations) to
December 31, 2025. |
|
|
| |
| 10 |
|
See Notes to Financial
Statements. |
|
|
| |
| December 31, 2025 |
|
Baron ETF
Trust |
STATEMENTS OF CHANGES IN
NET ASSETS (Continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| |
|
Baron Financials ETF1 |
|
|
Baron Technology ETF1 |
|
| |
|
For the
Year
Ended
December 31,
2025 |
|
|
For the
Year
Ended
December 31,
2024 |
|
|
For the
Year
Ended
December 31,
2025 |
|
|
For the
Year
Ended
December 31,
2024 |
|
|
Increase
(Decrease) in Net Assets: |
|
|
|
| |
|
|
| |
|
|
| |
|
| |
|
Operations: |
|
|
|
| |
|
|
| |
|
|
| |
|
| |
|
Net
investment income (loss) |
|
$ |
(215,065 |
) |
|
$ |
(101,461 |
) |
|
$ |
(615,452 |
) |
|
$ |
(206,125 |
) |
|
Net
realized gain (loss) |
|
|
1,516,248 |
|
|
|
(4,469 |
) |
|
|
69,672 |
|
|
|
1,213,584 |
|
|
Voluntary
payment from Adviser (Note 5) |
|
|
— |
|
|
|
— |
|
|
|
83,210 |
|
|
|
— |
|
|
Change
in net unrealized appreciation (depreciation) |
|
|
(1,087,095 |
) |
|
|
13,429,658 |
|
|
|
17,025,811 |
|
|
|
11,598,497 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase
(decrease) in net assets resulting from operations |
|
|
214,088 |
|
|
|
13,323,728 |
|
|
|
16,563,241 |
|
|
|
12,605,956 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions
to shareholders from (Note 8): |
|
|
|
| |
|
|
| |
|
|
| |
|
| |
|
Distributable
earnings |
|
|
— |
|
|
|
— |
|
|
|
(746,279 |
) |
|
|
— |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Decrease
in net assets from distributions to shareholders |
|
|
— |
|
|
|
— |
|
|
|
(746,279 |
) |
|
|
— |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
share transactions: |
|
|
|
| |
|
|
| |
|
|
| |
|
| |
|
Proceeds
from the sale of shares |
|
|
14,821,624 |
|
|
|
5,731,108 |
|
|
|
137,548,682 |
|
|
|
45,295,845 |
|
|
Net
asset value of shares issued in reinvestment of distributions |
|
|
— |
|
|
|
— |
|
|
|
742,303 |
|
|
|
— |
|
|
Cost
of shares redeemed |
|
|
(27,506,976 |
) |
|
|
(9,569,124 |
) |
|
|
(60,947,655 |
) |
|
|
(10,947,723 |
) |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase
(decrease) in net assets derived from capital share transactions |
|
|
(12,685,352 |
) |
|
|
(3,838,016 |
) |
|
|
77,343,330 |
|
|
|
34,348,122 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
increase (decrease) in net assets |
|
|
(12,471,264 |
) |
|
|
9,485,712 |
|
|
|
93,160,292 |
|
|
|
46,954,078 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Assets: |
|
|
|
| |
|
|
| |
|
|
| |
|
| |
|
Beginning
of year |
|
|
69,084,597 |
|
|
|
59,598,885 |
|
|
|
55,984,292 |
|
|
|
9,030,214 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
End
of year |
|
$ |
56,613,333 |
|
|
$ |
69,084,597 |
|
|
$ |
149,144,584 |
|
|
$ |
55,984,292 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
share transactions |
|
|
|
| |
|
|
| |
|
|
| |
|
| |
|
Shares
sold |
|
|
592,800 |
2 |
|
|
266,981 |
3 |
|
|
5,844,334 |
4 |
|
|
2,590,709 |
5 |
|
Shares
issued in reinvestment of distributions |
|
|
— |
|
|
|
— |
|
|
|
29,353 |
4 |
|
|
— |
|
|
Shares
redeemed |
|
|
(1,118,564 |
)2 |
|
|
(441,247 |
)3 |
|
|
(2,522,688 |
)4 |
|
|
(608,369 |
)5 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
increase (decrease) |
|
|
(525,764 |
) |
|
|
(174,266 |
) |
|
|
3,350,999 |
|
|
|
1,982,340 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 1 |
After
the close of business on December 12, 2025, Baron FinTech Fund and
Baron Technology Fund (each a Predecessor Fund) were reorganized into
Baron Financials ETF and Baron Technology ETF, respectively. The amounts
disclosed for periods prior to the reorganization reflect those of the
respective Predecessor Fund; share amounts have been adjusted to reflect
the conversion ratio of the respective Predecessor Fund’s shares to Baron
Financials ETF and Baron Technology ETF shares. Refer to Notes 1 and 4 in
the Notes to Financial Statements for additional information on the
reorganization and capital share transactions, respectively.
|
| 2 |
The
share activities disclosed include those of Baron Financials ETF’s
Predecessor Fund’s Retail Shares, Institutional Shares and R6 Shares
shares sold of 40,521, 463,283, and 38,995 and shares redeemed of
(159,746), (951,268), and (7,530) respectively, for the year ended
December 31, 2025. |
| 3 |
The
share activities disclosed include those of Baron Financials ETF’s
Predecessor Fund’s Retail Shares, Institutional Shares and R6 Shares
shares sold of 26,391, 239,645, and 945 and shares redeemed of (63,138),
(375,918), and (2,191) respectively, for the year ended December 31,
2024. |
| 4 |
The
share activities disclosed include those of Baron Technology ETF’s
Predecessor Fund’s Retail Shares, Institutional Shares and R6 Shares
shares sold of 1,329,639, 3,971,407, and 13,288, shares issued in
reinvestment of distributions of 11,432, 16,326, and 1,595, and shares
redeemed of (893,994), (1,501,039), and (7,622) respectively, for the year
ended December 31, 2025. |
| 5 |
The
share activities disclosed include those of Baron Technology ETF’s
Predecessor Fund’s Retail Shares, Institutional Shares and R6 Shares
shares sold of 770,326, 1,787,247, and 33,136 and shares redeemed of
(242,760), (365,609), and 0, respectively, for the year ended
December 31, 2024. |
|
|
| |
| See Notes to
Financial Statements. |
|
11 |
|
|
| |
| Baron ETF Trust |
|
December 31,
2025 |
NOTES TO FINANCIAL
STATEMENTS
1. ORGANIZATION
Baron
ETF Trust (the Trust) is registered under the Investment Company Act of 1940, as
amended (the 1940 Act), as an open-end
management investment company established as a Delaware statutory trust on
June 24, 2025. The Trust currently offers 5 series (individually, a Fund
and collectively, the Funds): Baron First Principles ETF, Baron Global Durable
Advantage ETF, Baron SMID Cap ETF, Baron Financials ETF, and Baron Technology
ETF.
Each
Fund offers and issues shares of beneficial interest (Shares). Shares of a Fund
represent an equal proportionate interest in the Fund. Each of Baron First
Principles ETF, Baron Global Durable Advantage ETF, and Baron SMID Cap ETF had
no operations until December 12, 2025, other than matters relating to the
Fund’s organization and its registration of shares under the 1933 Act. Baron
Financials ETF (formerly Baron FinTech Fund) and Baron Technology ETF (formerly
Baron Technology Fund) commenced operations as exchange-traded funds following
their reorganization from mutual funds.
At
a meeting held on August 5, 2025 (the Meeting), the Board of Trustees of
Baron Select Funds (the Acquired Fund Trust) approved on behalf of Baron FinTech
Fund and Baron Technology Fund (each, an Acquired Fund) and the Board of
Trustees of Baron ETF Trust (the Acquiring Fund Trust) approved on behalf of
Baron Financials ETF and Baron Technology ETF (each, an Acquiring Fund) (the
Board of Trustees of the Acquired Fund Trust and the Board of Trustees of the
Acquiring Fund Trust are referred to herein collectively as the Board) an
Agreement and Plan of Reorganization pursuant to which each Acquired Fund, a
series of the Acquired Fund Trust, will transfer its assets and liabilities to
its corresponding Acquiring Fund, each a series of Acquiring Fund Trust, in
exchange for shares of its corresponding Acquiring Fund in a tax-free reorganization (each, a
Reorganization). Each Acquiring Fund was immediately prior to the date of the
closing, a shell series, without assets or liabilities. Each Reorganization
became effective after the close of business on December 12, 2025.
Following each Reorganization, the Acquired Fund’s performance (Institutional
Shares) and financial history were adopted by the Acquiring Fund. In connection
with the Reorganization, each shareholder of the Acquired Fund (except as noted
below) received shares of the Acquiring Fund equal in value to the number of
shares of the Acquired Fund they owned on the Closing Date, including a cash
payment in lieu of fractional shares of the Acquiring Fund, which cash payment
might have been taxable. Shareholders of the Acquired Fund who did not hold
their shares through a brokerage account that could accept shares of the Fund on
the Closing Date had their Acquired Fund shares liquidated, and such
shareholders received cash equal in value to their Acquired Fund shares, which
cash payment might have been taxable.
The
investment goals of the Funds are as follows:
Baron
First Principles ETF is a non-diversified fund that seeks capital
appreciation through investments primarily in equity securities (including
depositary receipts) of U.S. growth companies of any market valuation.
Baron
Global Durable Advantage ETF is a non-diversified fund that seeks capital
appreciation through investments primarily in equity securities of established
and developing countries located throughout the world.
Baron
SMID Cap ETF is a diversified fund that seeks capital appreciation through
investments primarily in securities (including depositary receipts) of companies
of small- and mid-sized companies.
Baron
Financials ETF is a diversified fund that seeks capital appreciation through
investments primarily in equity securities (including depositary receipts) of
financials and financials-related companies.
Baron
Technology ETF is a non-diversified
fund that seeks capital appreciation through investments primarily in equity
securities (including depositary receipts) of U.S. and non-U.S. technology companies, selected for
their durable growth potential from the development, advancement, and use of
technology.
2. SIGNIFICANT ACCOUNTING
POLICIES AND INVESTMENT RISKS
The
following is a summary of significant accounting policies followed by the Funds.
The policies are in conformity with accounting principles generally accepted in
the United States of America (GAAP). The Trust is an investment company and
therefore follows the investment company accounting and reporting guidance of
the Financial Accounting Standards Board (FASB) Accounting Standards
Codification Topic 946 Financial Services — Investment Companies.
a) Net Asset Value. The Funds’ share prices or
net asset values (NAV) are calculated as of the scheduled close of the regular
trading session (usually 4 p.m. E.T. or such other time as of which the Funds’
NAVs are calculated (the NAV Calculation Time)) on the New York Stock Exchange
(the Exchange) on any day the Exchange is scheduled to be open. The NAV per
share of a class is determined by dividing the value of the total assets less
all liabilities of the Fund represented by such class, by the total number of
Fund shares of such class outstanding.
b) Security Valuation. Portfolio securities
traded on any national stock exchange are valued based on the last sale price on
the exchange where such shares are principally traded. For securities traded on
NASDAQ, the Funds use the NASDAQ Official Closing Price. If there are no sales
on a given day, the value of the security may be the average of the most recent
bid and asked quotations on such exchange or the last sale price from a prior
day. Where market quotations are not readily available, or, if in BAMCO, Inc.’s
(the Adviser) judgment, they do not accurately reflect the fair value of a
security, or an event occurs after the market close but before the Funds are
priced that materially affects the value of a security, the security will be
valued by the Adviser using policies and procedures approved by the Board of
Trustees (the Board). The Board has designated the Adviser to perform fair value
determinations pursuant to Rule 2a-5
under the 1940 Act. The Adviser has a Fair Valuation Committee (the Committee)
comprised of senior management representatives and the Committee reports to the
Board every quarter. Accordingly, the Committee may evaluate a variety of
factors to determine the fair value of securities for which market quotations
are determined not to be readily available or reliable. These factors include,
but are not limited to, the type of security, the value of comparable
securities, observations from financial institutions and relevant news events.
Input from the Adviser’s portfolio management team also will be considered.
Using a fair value pricing methodology to price securities may result in a value
that is different from the most recent closing price of a security and from the
prices used by other investment companies to calculate their portfolios’ NAVs.
U.S.
Government obligations, money market instruments, and other debt instruments
held by the Funds with a remaining maturity of 60 days or less are generally
valued at amortized cost, which approximates fair value, unless an independent
pricing service provides a valuation for such security or in the opinion of the
Board or the Committee, the amortized cost method would not represent fair
value. Debt instruments having a greater remaining maturity will be valued on
the basis of prices obtained from a pricing service approved by the Board or at
the mean of the bid and ask prices from the dealer maintaining an active market
in that security. The value of the Funds’
12
|
|
| |
| December 31, 2025 |
|
Baron ETF
Trust |
NOTES TO FINANCIAL
STATEMENTS (Continued)
2. SIGNIFICANT ACCOUNTING
POLICIES AND INVESTMENT RISKS (Continued)
investments
in convertible bonds/convertible preferred stocks is determined primarily by
obtaining valuations from independent pricing services based on readily
available bid quotations or, if quotations are not available, by methods which
include various considerations such as yields or prices of securities of
comparable quality, coupon, maturity and type; indications as to values from
dealers; and general market conditions. Other inputs used by an independent
pricing service to value convertible bonds/convertible preferred stocks
generally include underlying stock data, conversion premiums, listed bond and
preferred stock prices and other market information which may include benchmark
curves, trade execution data, sensitivity analysis, when available, or an
estimated value calculated based on the price of the underlying common share on
the valuation date adjusted for accrued and unpaid dividends. Open-end
investment companies, including securities lending collateral invested in
registered investment company money market funds, are valued at their NAV each
day.
Certain
non-U.S. equity securities traded on
foreign securities exchanges may be valued using an independent pricing vendor
that provides daily fair value adjustment factors based on information such as
local closing price, relevant general and sector indexes, currency fluctuations,
and depositary receipts, as applicable. Securities valued using such adjustment
factors are classified as Level 2 in the fair value hierarchy. The models
of the independent pricing vendor generate an adjustment factor for each
security, which is applied to the local closing price to adjust it for
post-closing market movements up to the time the Funds are valued and translated
into U.S. dollars. If the vendor does not provide an adjustment factor for a
security, the security is valued based on its most recent local closing price
and translated into U. S. dollars. The Adviser may also fair value securities in
other situations, for example, when a particular foreign market is closed but
the Funds are open. Other mutual funds and ETFs may adjust the prices of their
securities by different amounts.
c) Securities Transactions and Investment
Income. Fund securities transactions are accounted for on trade date.
Realized gain and loss from securities transactions are recorded on an
identified cost basis for financial reporting and federal income tax purposes.
Interest income is recognized on an accrual basis, which includes the accretion
of discounts and amortization of premiums. Dividend income (net of withholding
taxes, if any) is recognized on the ex-dividend date, except in the case of
certain dividends from foreign securities which are recorded as soon as the
Funds are informed of the dividend if such information is obtained subsequent to
the ex-dividend date. Non-cash dividends received in the form of
stock are recognized and recorded at fair value as non-cash dividend income.
Distributions
received from certain investments such as real estate investment trusts (REITs)
may be characterized as ordinary income, net capital gain, or a return of
capital to the Funds. Since the classification of such payments are generally
not known until after the end of the calendar year, the Funds estimate the
expected classification of such payments based upon available information which
may include the previous year’s allocation. Recharacterizations will be
reflected in the following year as additional information becomes available from
the issuers. The Funds record as dividend income the amounts characterized as
ordinary income and as realized gain the amounts characterized as capital gain
in the accompanying Statements of Operations. The amounts characterized as a
return of capital are reflected as a reduction of cost of the related investment
in the accompanying Portfolios of Investments.
d) Expense Allocation. The Funds are charged
for those expenses that are directly attributable to each Fund, such as advisory
and custodian fees. Expenses of the Trust, Baron Investment Funds Trust and
Baron Select Funds (collectively, the Fund Complex), not directly chargeable to
one or more specific Baron Funds are typically allocated among the funds in the
Fund Complex in proportion to their respective net assets.
e) Non-Diversified Portfolio. Certain
Funds are non-diversified, which means
they will likely have a greater percentage of their assets in a single issuer
than a diversified fund. As a result, a non-diversified Fund will likely invest a
greater percentage of its assets in fewer issuers, and the performance of those
issuers may have a greater effect on the Fund’s performance compared to a
diversified fund. Thus, a non-diversified Fund is more likely to
experience significant fluctuations in value, exposing the Fund to a greater
risk of loss in any given period than a diversified fund. Additionally, non-diversified Funds may encounter
difficulty liquidating securities.
f) Industry Concentration. From time to time,
market fluctuations in the value of a Fund’s investments, combined with a Fund’s
non-diversified portfolio, may result
in a Fund being concentrated in the securities of a single issuer or a small
number of issuers, including in a particular industry. As a result, this Fund
will be particularly exposed to the risks of that company or industry relative
to the risk exposure of investment companies holding a diversified portfolio of
securities or those that seek to maintain near-index weightings in their
portfolio securities. Accordingly, in those cases, a Fund will be
disproportionately exposed to the market conditions, interest rates, and
economic, regulatory, or financial developments that significantly affect that
company or industry.
g) Use of Estimates. The preparation of
financial statements in accordance with GAAP requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statements and the amounts of income
and expenses during the period. Actual results could differ from those
estimates.
h) Foreign Currency Translations. The
accounting records of the Funds are maintained in U.S. dollars. Values of assets
and liabilities denominated in foreign currencies are translated into U.S.
dollars using the price of such currencies at the NAV Calculation Time.
Purchases and sales of investments and dividend income are converted at the
prevailing rate of exchange on the respective dates of such transactions. Net
realized and change in net unrealized gain or loss on foreign currency
transactions includes gain (loss) arising from the fluctuation in the exchange
rates between trade and settlement dates on security transactions and currency
gain (loss) between the accrual and payment dates on dividends and foreign
withholding taxes. The Funds do not isolate the portion of operations resulting
from changes in foreign exchange rates on investments from the fluctuations
arising from changes in their market prices. Such fluctuations are included with
the net realized and change in net unrealized gain or loss from investments and
foreign currency translations on the Statements of Operations. The Funds may
invest in foreign securities and foreign currency transactions that may involve
risks not associated with domestic investments as a result of the level of
governmental supervision and regulation of foreign securities markets and the
possibility of political or economic instability, among others.
Pursuant
to U.S. federal income tax regulations, gains and losses from certain foreign
currency transactions and the foreign currency portion of gains and losses
realized on sales and maturities of foreign denominated debt securities are
generally treated as ordinary income for U.S. federal income tax purposes.
i) Securities Lending. The Funds may lend
securities to certain brokers under the terms of a master netting agreement.
Upon such loans, the Funds receive collateral which is maintained by the
custodian. The Funds may pay fees to the custodian for administering the
securities lending program. The Funds earn interest on such collateral and
13
|
|
| |
| Baron ETF Trust |
|
December 31,
2025 |
NOTES TO FINANCIAL
STATEMENTS (Continued)
2. SIGNIFICANT ACCOUNTING
POLICIES AND INVESTMENT RISKS (Continued)
earn
income in the form of negotiated lenders’ fees, both of which are included in
securities lending income in the Statements of Operations. Securities loaned are
required to be secured at all times by collateral equal to at least 102% of the
market value of the securities loaned. Risks may arise upon entering into
securities lending to the extent that the value of the collateral is less than
the value of the securities loaned due to the changes in the value of collateral
or the loaned securities. The collateral is marked-to-market daily and settled on
the next business day. The Funds may receive collateral in the form of cash or
other eligible securities, such as a letter of credit issued by a U.S. bank or
securities issued or guaranteed by the U.S. government. Securities purchased
with cash collateral are subject to the risks inherent in investing in these
securities.
There
were no securities on loan at December 31 2025.
j) Repurchase Agreements. The Funds may invest
in repurchase agreements, which are short-term investments whereby the Funds
acquire ownership of a debt security and the seller agrees to repurchase the
security at a future date at a specified price. When entering into repurchase
agreements, it is the Funds’ policy that their custodian take possession of the
underlying collateral securities, the market value of which, at all times,
equals at least 102% of the principal amount of the repurchase transaction. To
the extent that any repurchase transaction exceeds one business day, the value
of the collateral is marked-to-market to ensure the
adequacy of the collateral. If the seller defaults and the market value of the
collateral declines or if bankruptcy proceedings are commenced with respect to
the seller of the security, realization of the collateral by the Funds may be
delayed or limited.
There
were no repurchase agreements at December 31, 2025.
k) Federal and Foreign Income Taxes. The Trust
treats each Fund as a separate entity for federal income tax purposes. Each Fund
intends to meet the requirements of the Internal Revenue Code of 1986, as
amended, applicable to regulated investment companies, and to distribute to its
shareholders substantially all of its net investment income and any net realized
capital gains at least annually. None of the Funds will be subject to federal or
state income taxes to the extent that they qualify as regulated investment
companies and substantially all of their income is distributed.
The
Funds are subject to foreign tax on capital gains and withholding taxes on
income from foreign investments that are accrued based upon the Funds’
understanding of the tax rules and regulations that exist in the countries in
which they invest. Foreign governments may also impose taxes or other payments
on investments with respect to foreign securities. Such taxes are accrued as
applicable.
The
Funds attempt to qualify for reduced tax rates or exemptions in countries with
which the United States has a tax treaty and may file withholding tax reclaims
in certain countries to recover portions of amounts previously withheld.
Further,
as a result of several court cases across the European Union, the Funds may also
file tax reclaims for previously withheld taxes in those countries. These
filings are subject to various administrative proceedings by the local
jurisdictions’ tax authorities, as well as several related judicial proceedings.
Uncertainty exists as to the ultimate resolution of these proceedings, the
likelihood of receipt of these claims, and the potential timing of payment, and
accordingly no amounts are reflected in the financial statements until a
positive decision has been awarded, at which time the amount will be recorded as
a reduction of foreign taxes withheld on dividends, or as dividend income to the
extent such claims exceed the foreign taxes withheld on dividends included
within dividend income on the Statements of Operations. Such amounts, if and
when recorded, could result in an increase in the respective Funds’ NAV per
share and, if material, would be reported separately in the Statements of
Operations.
l) Restricted Securities. The Funds may invest
in securities that are restricted as to public sale in accordance with the
Securities Act of 1933. Such assets are valued by the Adviser pursuant to
policies and procedures approved by the Board. Refer to Note 6 for additional
information.
m) Distributions to Shareholders. Income and
capital gain distributions to shareholders are determined in accordance with
income tax regulations which may differ from GAAP. These differences are
primarily due to differing treatments for net investment loss, foreign currency
gains and losses, non-deductible
interest expense, reclassification of distributions, partnership basis
adjustments, income from passive foreign investment companies, foreign capital
gains tax, late-year loss deferral, post-October loss deferral, and wash sale
loss deferral. Income dividends are normally declared and paid annually. During
any particular year, net realized gains from investment transactions in excess
of available capital loss carryforwards would be taxable to the Funds, if not
distributed. The Funds intend to declare and distribute these amounts, at least
annually, to shareholders, but may distribute more frequently.
n) Commitments and Contingencies. In the normal
course of business, the Funds may enter into contracts and agreements that
contain a variety of representations and warranties, which provide general
indemnification. The maximum exposure to the Funds under these agreements is
unknown, as this would involve future claims that may be made against the Funds
that have not yet occurred. However, based on experience, the Funds expect the
risk of loss to be remote.
o) In-Kind
Redemption. In accordance with guidelines described in a Fund’s
prospectus and in accordance with procedures adopted by the Board, a Fund may
distribute portfolio securities rather than cash as payment for a redemption of
Fund shares (in-kind redemption). For
financial reporting purposes, the Fund recognizes a gain on in-kind redemptions to the extent the value
of the distributed securities on the date of redemption exceeds the cost of
those securities. Gains and losses realized on in-kind redemptions are not recognized for
tax purposes and are reclassified from undistributed realized gain/loss to paid-in capital. During the year ended
December 31, 2025, Baron Financials ETF and Baron Technology ETF realized
net gains of $976,093 and $1,566,732 on $2,879,892 and $3,771,370 of in-kind redemptions in securities,
respectively.
p) Segment Reporting. The Adviser’s Management
Committee acts as each Fund’s chief operating decision maker (CODM), as defined
in GAAP, assessing performance and making decisions about resource allocation.
The CODM has determined that each Fund has a single operating segment based on
the fact that the CODM monitors the operating results of each Fund as a whole
and each Fund’s long-term strategic asset allocation is guided by the Fund’s
investment objective and principal investment strategies, as described in its
respective prospectus, and executed by the Fund’s portfolio management team,
comprised of investment professionals employed by the Adviser. The financial
information provided to and reviewed by the CODM is consistent with that
presented in each Fund’s Financial Statements.
14
|
|
| |
| December 31, 2025 |
|
Baron ETF
Trust |
NOTES TO FINANCIAL
STATEMENTS (Continued)
3. PURCHASES AND SALES OF
SECURITIES
Purchases
and sales of securities, other than short-term securities, if any, and in-kind transactions related to capital share
transactions, if any, for the year ended December 31, 2025 were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
| |
| Fund |
|
Purchases |
|
|
Sales |
|
|
In-Kind
Purchases |
|
|
In-Kind
Sales |
|
|
Baron
First Principles ETF |
|
$ |
17,757,231 |
|
|
$ |
12,383,430 |
|
|
$ |
65,220,490 |
|
|
$ |
— |
|
|
Baron
Global Durable Advantage ETF |
|
|
1,031,145 |
|
|
|
— |
|
|
|
2,226,553 |
|
|
|
— |
|
|
Baron
SMID Cap ETF |
|
|
674,975 |
|
|
|
196,547 |
|
|
|
15,152,481 |
|
|
|
— |
|
|
Baron
Financials ETF |
|
|
9,518,392 |
|
|
|
20,550,973 |
|
|
|
1,241,603 |
|
|
|
— |
1 |
|
Baron
Technology ETF |
|
|
121,064,677 |
|
|
|
51,469,024 |
|
|
|
10,295,753 |
|
|
|
2,806,803 |
1 |
| 1 |
Excludes
in-kind transactions from Predecessor Fund. See Note 2 for more
information. |
4. FUND SHARE
TRANSACTIONS
Shares
of the Baron First Principles ETF, Baron Global Durable Advantage ETF, and Baron
SMID Cap ETF are listed and traded at market price on the New York Stock
Exchange. Shares of the Baron Financials ETF and Baron Technology ETF are listed
and traded at market price on the NASDAQ Stock Market LLC. The Funds issue or
redeem capital shares in aggregation of a specified number of shares (each, a
Creation Unit) to certain institutional investors (typically market makers or
other broker-dealers) on a continuous basis through the Distributor. Currently,
the number of shares that constitutes a Creation Unit for the Funds is 10,000
shares. Creation Unit transactions are conducted at NAV, typically in exchange
for the deposit or delivery of a designated portfolio of in-kind securities, cash, or a combination
thereof, consistent with a Fund’s investment objective, policies, and
disclosure.
The
capital share activity disclosed in the Statements of Changes in Net Assets for
Baron Financials ETF and Baron Technology ETF include the capital activity of
the Retail Shares, Institutional Shares, and R6 Shares of the respective
Predecessor Fund for periods prior to the Reorganization.
For
the year ended December 31, 2025, the pre-Reorganization fund share
transactions were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
| |
| Fund |
|
Shares
Sold |
|
|
Shares
Issued
in
Reinvestment
of
Distributions |
|
|
Shares
Redeemed |
|
|
Total |
|
|
|
|
|
| |
|
Baron
Financials ETF |
|
|
|
| |
|
|
| |
|
|
| |
|
| |
|
|
|
|
| |
|
Retail
Shares |
|
$ |
1,035,576 |
|
|
$ |
— |
|
|
$ |
(3,971,487 |
) |
|
$ |
(2,935,911 |
) |
|
|
|
|
| |
|
Institutional
Shares |
|
|
11,530,478 |
|
|
|
— |
|
|
|
(23,345,002 |
) |
|
|
(11,814,524 |
) |
|
|
|
|
| |
|
R6
Shares |
|
|
1,010,000 |
|
|
|
— |
|
|
|
(190,023 |
) |
|
|
819,977 |
|
|
|
|
|
| |
|
Baron
Technology ETF |
|
|
|
| |
|
|
| |
|
|
| |
|
| |
|
|
|
|
| |
|
Retail
Shares |
|
|
31,159,487 |
|
|
|
289,228 |
|
|
|
(21,413,499 |
) |
|
|
10,035,216 |
|
|
|
|
|
| |
|
Institutional
Shares |
|
|
92,855,640 |
|
|
|
412,743 |
|
|
|
(36,341,007 |
) |
|
|
56,927,376 |
|
|
|
|
|
| |
|
R6
Shares |
|
|
293,837 |
|
|
|
40,332 |
|
|
|
(181,621 |
) |
|
|
152,548 |
|
For
the year ended December 31, 2024, the pre-Reorganization fund share
transactions were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
| |
| Fund |
|
Shares
Sold |
|
|
Shares
Issued
in
Reinvestment
of
Distributions |
|
|
Shares
Redeemed |
|
|
Total |
|
|
|
|
|
| |
|
Baron
Financials ETF |
|
|
|
| |
|
|
| |
|
|
| |
|
| |
|
|
|
|
| |
|
Retail
Shares |
|
$ |
593,328 |
|
|
$ |
— |
|
|
$ |
(1,369,992 |
) |
|
$ |
(776,664 |
) |
|
|
|
|
| |
|
Institutional
Shares |
|
|
5,117,116 |
|
|
|
— |
|
|
|
(8,152,397 |
) |
|
|
(3,035,281 |
) |
|
|
|
|
| |
|
R6
Shares |
|
|
20,664 |
|
|
|
— |
|
|
|
(46,735 |
) |
|
|
(26,071 |
) |
|
|
|
|
| |
|
Baron
Technology ETF |
|
|
|
| |
|
|
| |
|
|
| |
|
| |
|
|
|
|
| |
|
Retail
Shares |
|
|
13,676,445 |
|
|
|
— |
|
|
|
(4,416,854 |
) |
|
|
9,259,591 |
|
|
|
|
|
| |
|
Institutional
Shares |
|
|
31,006,115 |
|
|
|
— |
|
|
|
(6,530,869 |
) |
|
|
24,475,246 |
|
|
|
|
|
| |
|
R6
Shares |
|
|
613,285 |
|
|
|
— |
|
|
|
— |
|
|
|
613,285 |
|
In
conjunction with each Reorganization, the Acquiring Funds issued shares in
exchange for the Acquired Funds as follows. These amounts are not reflected in
the share activity above or in the accompanying Statements of Changes in Net
Assets.
Baron
Financials ETF issued 208,809, 1,479,061, and 539,342 shares in exchange for
298,100 Retail Shares, 2,081,039 Institutional Shares, and 758,807 R6 Shares of
the Baron FinTech Fund. Baron Technology ETF issued 1,314,164, 4,007,692, and
220,736 shares in exchange for 2,125,860 Retail Shares, 6,408,697 Institutional
Shares, and 353,698 R6 Shares of the Baron Technology Fund.
15
|
|
| |
| Baron ETF Trust |
|
December 31,
2025 |
NOTES TO FINANCIAL
STATEMENTS (Continued)
5. INVESTMENT ADVISORY
FEES AND OTHER TRANSACTIONS WITH AFFILIATES
a) Investment Advisory Fees. The Adviser, a
wholly owned subsidiary of Baron Capital Group, Inc. (BCG), serves as investment
adviser to the Funds. As compensation for services rendered, the Adviser
receives a fee accrued daily as a percentage of each Fund’s average daily net
assets and payable monthly, at an annual rate set forth below:
|
|
|
|
| |
|
| |
| Fund |
|
Annual
Rate |
|
|
Baron
First Principles ETF |
|
|
1.00 |
% |
|
Baron
Global Durable Advantage ETF |
|
|
0.75 |
% |
|
Baron
SMID Cap ETF |
|
|
0.75 |
% |
|
Baron
Financials ETF |
|
|
0.80 |
% |
|
Baron
Technology ETF(a) |
|
|
0.75 |
% |
(a) Baron Technology ETF’s
Predecessor Fund’s annual rate was 0.80%. The effective fee rate for the year
ended December 31, 2025 is 0.80%.
The
Board has approved a unitary management fee structure for each Fund. Under the
unitary management fee structure, the Adviser will pay all expenses of each
Fund, including the costs of transfer agency, custody, fund administration,
legal, audit and other services, except for portfolio transaction costs,
interest and dividend expense, acquired fund fees and expenses, fees and
expenses related to filing foreign tax reclaims, Baron First Principles ETF’s
line of credit expenses, and extraordinary expenses. Baron First Principles ETF
did not incur any line of credit expenses for the period ended December 31,
2025.
The
Adviser had contractually agreed to waive its fee or reimburse the respective
Predecessor Fund expenses to the extent required to limit the net annual
operating expense ratio (excluding portfolio transaction costs, interest and
dividend expense, acquired fund fees and expenses, fees and expenses related to
filing foreign tax reclaims, and extraordinary expenses) pursuant to a contract
expiring on August 29, 2036, unless renewed for another 11-year term, as follows:
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
| |
| |
|
Annual Operating Expense
Ratio
Cap |
|
|
|
|
| |
| Fund |
|
Retail
Shares |
|
|
Institutional
Shares |
|
|
R6
Shares |
|
|
Baron
Financials ETF |
|
|
1.20 |
% |
|
|
0.95 |
% |
|
|
0.95 |
% |
|
Baron
Technology ETF |
|
|
1.20 |
% |
|
|
0.95 |
% |
|
|
0.95 |
% |
During the year ended
December 31, 2025, the Adviser waived its management fees and reimbursed
other expenses, if applicable, as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
| |
| |
|
Retail Shares |
|
|
Institutional Shares |
|
|
R6 Shares |
|
|
|
|
|
|
|
| |
| Fund |
|
Management
Fees
Waived |
|
|
Expenses
Reimbursed |
|
|
Management
Fees
Waived |
|
|
Expenses
Reimbursed |
|
|
Management
Fees
Waived |
|
|
Expenses
Reimbursed |
|
|
Baron
Financials ETF(a) |
|
$ |
22,484 |
|
|
$ |
— |
|
|
$ |
58,644 |
|
|
$ |
— |
|
|
$ |
12,385 |
|
|
$ |
— |
|
|
Baron
Technology ETF(a) |
|
|
37,759 |
|
|
|
— |
|
|
|
69,054 |
|
|
|
— |
|
|
|
6,637 |
|
|
|
— |
|
(a) Amounts represent
Predecessor Fund activity.
The
aforementioned fee waivers and reimbursements, if applicable, are not subject to
recoupment by the Adviser. The waiver agreement was terminated upon
Reorganization.
b) Distribution Fees. Baron Capital, Inc.
(BCI), a wholly owned subsidiary of BCG, is a registered broker-dealer and the
distributor of the Funds’ shares. The Predecessor Funds were authorized to pay
BCI a distribution fee payable monthly pursuant to a distribution plan under
Rule 12b-1 of the 1940 Act equal to
0.25% per annum of the Retail Shares’ average daily net assets of the respective
Funds.
c) Trustee Fees. Certain Trustees of the Trust
are officers of the Adviser and received no direct renumeration in such capacity
from the Fund Complex. The Fund Complex pays each Independent Trustee (an
Independent Trustee is a Trustee who is not an interested person (as defined in
the 1940 Act) of the Fund Complex) annual compensation in addition to
reimbursement of out-of-pocket expenses in connection
with attendance at meetings of the Board. Specifically, each Independent Trustee
receives an annual base compensation of $215,000 with the lead Independent
Trustee receiving an additional $50,000. An additional $60,000 per annum is paid
to each Independent Trustee for attendance at the quarterly meetings of the
Board. Each member of the Audit Committee receives an additional $12,500 in
annual compensation with the Audit Committee Chairperson receiving an additional
$12,500.
d) Custody, Fund Accounting and Administration Fees.
The Funds have entered into an agreement with State Street Bank and Trust
Company (State Street) to perform custody, accounting and certain administrative
services.
e) Cross Trades. The Funds are permitted to
purchase securities from, or sell securities to, other Funds within the Trust,
the funds in Baron Investment Funds Trust, the funds in Baron Select Funds and
other entities advised or subadvised by the Adviser, pursuant to “Cross-Trading
Procedures” adopted by the Board. These procedures have been designed to ensure
that any cross-trade of securities by the respective Baron Fund from or to
another fund/other entity that is or could be considered an affiliate of a Fund
under certain limited circumstances by virtue of having a common investment
adviser, common officers, or common trustees complies with Rule 17a-7 under the 1940 Act. Further, as defined
under these procedures, each cross-trade is effected at the current market price
and with no commissions. For the year ended December 31, 2025, the Funds
did not engage in cross-trades.
f) Voluntary
Payment. During the year ended December 31, 2025, the Adviser made a
voluntary payment to Baron Technology ETF’s Predecessor Fund in the amount of
$83,210 to compensate the Fund for a loss incurred due to a trading error. The
impact of this payment increased the Fund’s total return by 0.06%.
16
|
|
| |
| December 31, 2025 |
|
Baron ETF
Trust |
NOTES TO FINANCIAL
STATEMENTS (Continued)
5. INVESTMENT ADVISORY
FEES AND OTHER TRANSACTIONS WITH AFFILIATES (Continued)
g) Ownership Concentration. As of
December 31, 2025, the officers, Trustees, and portfolio managers owned,
directly or indirectly, 27.38% of Baron Global Durable Advantage ETF and 16.92%
of Baron SMID Cap ETF. As a result of their ownership, these investors may be
able to materially affect the outcome of matters presented to Baron Global
Durable Advantage ETF and Baron SMID Cap ETF shareholders.
6. RESTRICTED SECURITIES
At
December 31, 2025, investments in securities included securities that are
restricted and/or illiquid. Restricted securities are often purchased in private
placement transactions, are not registered under the Securities Act of 1933, may
have contractual restrictions on resale and are valued pursuant to the policies
and procedures for fair value pricing approved by the Board. An illiquid
investment is any investment that the Funds reasonably expect cannot be sold or
disposed of in current market conditions in seven calendar days or less without
the sale or disposition significantly changing the market value of the
investment, as determined pursuant to the provisions of SEC Rule 22e-4 (the Liquidity Rule) governing
classification of portfolio securities. The Funds may receive more or less than
this valuation in an actual sale and that difference could be material.
At December 31,
2025, the Funds held investments in restricted and/or illiquid securities that
were valued pursuant to policies and procedures for fair value pricing as
follows:
|
|
|
|
|
|
|
|
| |
|
| |
| |
|
Baron First Principles ETF |
|
|
|
| |
| Name of Issuer |
|
Acquisition Date(s) |
|
|
Value |
|
|
X.AI
Holdings Corp. |
|
|
12/19/2025 |
|
|
$ |
4,999,980 |
|
|
| |
|
|
| |
|
|
|
|
|
| |
|
Total
Restricted Securities: |
|
|
|
| |
$ |
4,999,980 |
|
|
| |
|
|
| |
|
|
|
|
(Cost
$4,999,980) (7.06%
of Net Assets) |
|
|
|
| |
|
| |
7. FAIR VALUE
MEASUREMENTS
Fair
value is defined by GAAP as the price that the Funds would receive upon selling
an investment in a timely transaction to an independent buyer in the principal
or most advantageous market for the investment. GAAP provides a three-tier
hierarchy to maximize the use of observable market data and minimize the use of
unobservable inputs and to establish classification of fair value measurements
for disclosure purposes. Inputs refer broadly to the assumptions that market
participants would use in pricing the asset or liability. Inputs may be
observable or unobservable. Observable inputs are based on market data obtained
from sources independent of the Funds. Unobservable inputs are inputs that
reflect the Funds’ own assumptions based on the best information available in
the circumstances. The three-tier hierarchy of inputs is summarized in the three
broad Levels listed below.
| |
• |
|
Level 1
– quoted prices in active markets for identical assets or liabilities;
|
| |
• |
|
Level 2
– prices determined using other inputs that are observable either directly
or indirectly through corroboration with observable market data (which
could include quoted prices for similar assets or liabilities, interest
rates, credit risk, etc.); |
| |
• |
|
Level 3
– prices determined using unobservable inputs when quoted prices or
observable inputs are unavailable, such as when there is little or no
market activity for an asset or liability (unobservable inputs reflect
each Fund’s own assumptions in determining the fair value of assets or
liabilities and would be based on the best information available).
|
The
inputs or methodology used for valuing securities are not necessarily an
indication of the risk or liquidity associated with investing in those
securities. For example, non-U.S.
securities, with markets that close hours before the Funds value their holdings,
may require revised valuations to more accurately reflect their fair value.
Since these values obtained from quoted prices in an active market are adjusted,
such securities are reflected as Level 2.
The
Funds have procedures to determine the fair value of securities and other
financial instruments for which market prices are not readily available, or
which may not be reliably priced. Under these procedures, the Funds primarily
employ a market-based approach that may use related or comparable assets or
liabilities, recent transactions, market multiples, book values, and other
relevant information for the investment to determine its fair value. The Funds
may also use an income-based valuation approach in which the anticipated future
cash flows of the investment are discounted to calculate fair value. Discounts
may also be applied due to the nature or duration of any restrictions on the
disposition of the investments. Due to the inherent uncertainty of valuations of
such investments, the fair values may differ significantly from the values that
would have been used had an active market existed.
The
following is a summary of the inputs used as of December 31, 2025 in
valuing the Funds’ investments carried at fair value:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
| |
| |
|
Baron First Principles ETF |
|
|
|
|
|
| |
| Description |
|
Quoted Prices in
Active
Markets
for
Identical
Assets
(Level
1) |
|
|
Other
Observable
Inputs
(Level
2) |
|
|
Unobservable
Inputs
(Level
3) |
|
|
Total |
|
|
Common
Stocks† |
|
$ |
65,086,125 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
65,086,125 |
|
|
Private
Preferred Stocks |
|
|
— |
|
|
|
— |
|
|
|
4,999,980 |
|
|
|
4,999,980 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Investments |
|
$ |
65,086,125 |
|
|
$ |
— |
|
|
$ |
4,999,980 |
|
|
$ |
70,086,105 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| † |
See
Portfolios of Investments for additional detailed categorizations.
|
17
|
|
| |
| Baron ETF Trust |
|
December 31,
2025 |
NOTES TO FINANCIAL
STATEMENTS (Continued)
7. FAIR VALUE
MEASUREMENTS (Continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
| |
| |
|
Baron Global Durable Advantage
ETF |
|
|
|
|
|
| |
| Description |
|
Quoted Prices in
Active
Markets
for
Identical
Assets
(Level
1) |
|
|
Other
Observable
Inputs
(Level
2) |
|
|
Unobservable
Inputs
(Level
3) |
|
|
Total |
|
|
Common
Stocks† |
|
$ |
3,272,855 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
3,272,855 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Investments |
|
$ |
3,272,855 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
3,272,855 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| |
|
Baron SMID Cap ETF |
|
|
|
|
|
| |
| Description |
|
Quoted Prices
in
Active
Markets
for
Identical
Assets
(Level
1) |
|
|
Other
Observable
Inputs
(Level
2) |
|
|
Unobservable
Inputs
(Level
3) |
|
|
Total |
|
|
Common
Stocks† |
|
$ |
15,417,431 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
15,417,431 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Investments |
|
$ |
15,417,431 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
15,417,431 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| |
|
Baron Financials ETF |
|
|
|
|
|
| |
| Description |
|
Quoted Prices
in
Active
Markets
for
Identical
Assets
(Level
1) |
|
|
Other
Observable
Inputs
(Level
2) |
|
|
Unobservable
Inputs
(Level
3) |
|
|
Total |
|
|
Common
Stocks† |
|
$ |
56,507,643 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
56,507,643 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Investments |
|
$ |
56,507,643 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
56,507,643 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| |
|
Baron Technology ETF |
|
|
|
|
|
| |
| Description |
|
Quoted Prices
in
Active
Markets
for
Identical
Assets
(Level
1) |
|
|
Other
Observable
Inputs
(Level
2) |
|
|
Unobservable
Inputs
(Level
3) |
|
|
Total |
|
|
Common
Stocks† |
|
$ |
147,838,420 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
147,838,420 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Investments |
|
$ |
147,838,420 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
147,838,420 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
|
| |
| † |
See
Portfolios of Investments for additional detailed categorizations.
|
18
|
|
| |
| December 31, 2025 |
|
Baron ETF
Trust |
NOTES TO FINANCIAL
STATEMENTS (Continued)
7. FAIR VALUE
MEASUREMENTS (Continued)
The
following is a reconciliation of significant Level 3 investments in which
unobservable inputs were used in determining fair value:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
| |
| |
|
Baron First Principles ETF |
|
|
|
|
|
|
|
|
|
|
|
| |
| Investments in Securities |
|
Balance as
of
December 31,
2024 |
|
|
Accrued
Premiums/
Discounts |
|
|
Net
Realized
Gain
(Loss) |
|
|
Change in
Net
Unrealized
Appreciation
(Depreciation) |
|
|
Purchases |
|
|
Sales |
|
|
Transfers
Into
Level 3 |
|
|
Transfers
Out
of
Level 3 |
|
|
Balance as
of
December 31,
2025 |
|
|
Change in
Net
Unrealized
Appreciation
(Depreciation)
from
Investments
still held
at
December 31,
2025 |
|
|
Private
Preferred Stocks |
|
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
|
Communication
Services |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
0 |
|
|
$ |
4,999,980 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
4,999,980 |
|
|
$ |
0 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
4,999,980 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
4,999,980 |
|
|
$ |
— |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unobservable
valuation inputs developed by the Adviser for significant Level 3
investments as of December 31, 2025 were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Baron First
Principles ETF |
|
|
|
|
|
|
| |
| Sector |
|
Fair Value as of
December 31, 2025 |
|
Valuation Technique |
|
Unobservable Input |
|
Weighted Average
used
on
December 31, 2025 |
|
Range used on
December 31, 2025* |
|
Impact to Valuation
from an
Increase
in
Input** |
|
Private
Preferred Stocks:
Information
Technology |
|
$4,999,980 |
|
Observed
Transaction |
|
Observed
Transaction
Price |
|
$75.46 |
|
N/A |
|
Increase |
| * |
N/A
indicates that the range used is not applicable as unobservable inputs are
disclosed at the security level. |
| ** |
Represents
the directional change in the fair value of Level 3 investments that
could have resulted from an increase in the corresponding input as of
period end. A decrease to the unobservable input would have had the
opposite effect. Significant changes in these inputs may have resulted in
a significantly higher or lower fair value measurement at period end.
|
8. INCOME TAXES AND
DISTRIBUTIONS TO SHAREHOLDERS
Federal
income tax regulations differ from GAAP. Therefore, distributions determined in
accordance with tax regulations may differ in amount or character from net
investment income and net realized gain for financial reporting purposes. Net
investment income (loss) and net realized and unrealized gain (loss) may differ
for financial statement and tax purposes due to differing treatments of in-kind
transactions, net investment loss, foreign currency gains and losses, non-deductible interest expense,
reclassification of distributions, income from passive foreign investment
companies, foreign capital gains tax, late year loss deferral, post-October loss
deferral, and wash sale loss deferral. Financial reporting records are adjusted
for permanent book/tax differences to reflect tax character. Financial records
are not adjusted for temporary differences.
For
the year ended December 31, 2025, the Funds recorded the following
permanent reclassifications to reflect tax character. Reclassifications between
income, gains and paid-in capital
relate primarily to the tax treatment of in-kind transactions and net investment
losses. Results of operations and net assets were not affected by these
reclassifications.
|
|
|
|
|
|
|
|
| |
|
|
| |
| Fund |
|
Distributable
Earnings/
(Losses)
|
|
|
Paid-In
Capital |
|
|
Baron
First Principles ETF |
|
$ |
— |
|
|
$ |
— |
|
|
Baron
Global Durable Advantage ETF |
|
|
358 |
|
|
|
(358 |
) |
|
Baron
SMID Cap ETF |
|
|
579 |
|
|
|
(579 |
) |
|
Baron
Financials ETF |
|
|
(744,231 |
) |
|
|
744,231 |
|
|
Baron
Technology ETF |
|
|
(1,185,453 |
) |
|
|
1,185,453 |
|
As
of December 31, 2025, the Funds’ cost of investments and gross unrealized
appreciation (depreciation) for U.S. federal income tax purposes were as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
| |
| |
|
Baron
First
Principles ETF |
|
|
Baron Global
Durable
Advantage ETF |
|
|
Baron
SMID
Cap
ETF |
|
|
Baron
Financials ETF |
|
|
Baron
Technology ETF |
|
|
Cost
of investments |
|
$ |
70,448,441 |
|
|
$ |
3,257,697 |
|
|
$ |
15,624,396 |
|
|
$ |
39,207,807 |
|
|
$ |
118,164,173 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
tax unrealized appreciation |
|
|
874,249 |
|
|
|
36,202 |
|
|
|
57,632 |
|
|
|
17,966,276 |
|
|
|
31,777,767 |
|
|
Gross
tax unrealized depreciation |
|
|
(1,236,585 |
) |
|
|
(21,044 |
) |
|
|
(264,597 |
) |
|
|
(666,440 |
) |
|
|
(2,103,520 |
) |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
tax unrealized appreciation (depreciation) |
|
|
(362,336 |
) |
|
|
15,158 |
|
|
|
(206,965 |
) |
|
|
17,299,836 |
|
|
|
29,674,247 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
19
|
|
| |
| Baron ETF Trust |
|
December 31,
2025 |
NOTES TO FINANCIAL
STATEMENTS (Continued)
8. INCOME TAXES AND
DISTRIBUTIONS TO SHAREHOLDERS (Continued)
As
of December 31, 2025, the components of net assets on a tax basis were as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
| |
| |
|
Baron
First
Principles ETF |
|
|
Baron Global
Durable
Advantage ETF |
|
|
Baron
SMID
Cap
ETF |
|
|
Baron
Financials ETF(a) |
|
|
Baron
Technology
ETF(a) |
|
|
Undistributed
(accumulated) net investment income (loss) |
|
$ |
2,454 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
Undistributed
(accumulated) net realized gain (loss) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
389,828 |
|
|
Qualified
late year loss deferral |
|
|
— |
|
|
|
(144 |
) |
|
|
— |
|
|
|
— |
|
|
|
(2,181,325 |
) |
|
Capital
loss carryforwards |
|
|
(145,850 |
) |
|
|
— |
|
|
|
(6,513 |
) |
|
|
(6,316,528 |
) |
|
|
(188,067 |
) |
|
Net
tax unrealized appreciation (depreciation) on investments |
|
|
(362,336 |
) |
|
|
15,158 |
|
|
|
(206,965 |
) |
|
|
17,299,836 |
|
|
|
29,674,247 |
|
|
Net
tax unrealized currency appreciation (depreciation) |
|
|
— |
|
|
|
(13 |
) |
|
|
— |
|
|
|
9 |
|
|
|
2 |
|
|
Paid-in
capital |
|
|
71,362,329 |
|
|
|
3,273,282 |
|
|
|
16,118,330 |
|
|
|
45,630,016 |
|
|
|
121,449,899 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Assets |
|
$ |
70,856,597 |
|
|
$ |
3,288,283 |
|
|
$ |
15,904,852 |
|
|
$ |
56,613,333 |
|
|
$ |
149,144,584 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (a) |
Amounts
disclosed are inclusive of the Predecessor Fund. |
At
December 31, 2025, the Funds had capital loss carryforwards with no expiration
dates as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
| |
| |
|
Baron
First
Principles ETF |
|
|
Baron Global
Durable
Advantage ETF |
|
|
Baron
SMID
Cap ETF1 |
|
|
Baron
Financials ETF |
|
|
Baron
Technology ETF1 |
|
|
Short
Term |
|
$ |
145,850 |
|
|
$ |
— |
|
|
$ |
6,513 |
|
|
$ |
2,635,581 |
|
|
$ |
135,544 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long
Term |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
3,680,947 |
|
|
$ |
52,523 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
loss carryforward utilized during the year ended December 31, 2025 |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
570,296 |
|
|
$ |
209,496 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 1 |
Future
utilization of losses may be subject to limitations under current tax
laws. |
The
tax character of distributions paid during the years ended December 31, 2025 and
December 31, 2024 was as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
| |
| |
|
Year Ended
December 31, 2025 |
|
|
Year Ended
December 31, 2024 |
|
|
|
|
|
|
|
| |
| |
|
Ordinary1 |
|
|
Long Term
Capital Gain |
|
|
Return of
Capital |
|
|
Ordinary1 |
|
|
Long Term
Capital Gain |
|
|
Return of
Capital |
|
|
Baron
First Principles ETF |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Baron
Global Durable Advantage ETF |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Baron
SMID Cap ETF |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Baron
Financials ETF(a)(b) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Baron
Technology ETF (b)(c
) |
|
|
204,529 |
|
|
|
541,750 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| 1 |
For
tax purposes, short-term capital gains are considered ordinary income
distributions. |
| (a) |
After
the close of business on December 12, 2025, the Predecessor Fund was
reorganized into Baron Financials ETF. |
| (b) |
Amounts
disclosed are inclusive of the Predecessor Fund. |
| (c) |
After
the close of business on December 12, 2025, the Predecessor Fund was
reorganized into Baron Technology ETF. |
GAAP
sets forth a threshold for financial statement recognition, measurement and
disclosure of tax positions taken or expected to be taken on a tax return. The
Funds are required to recognize the tax effects of certain tax positions under a
“more likely than not” standard, that based on their technical merits, have more
than 50% likelihood of being sustained upon examination. Management has analyzed
the tax positions taken on the Funds’ federal income tax returns for all open
years (current and prior three years), and has concluded that no provision for
federal income tax is required in the Funds’ financial statements. At
December 31, 2025, the Funds did not have any uncertain tax benefits that
require recognition, de-recognition or
disclosure. The Funds’ federal, state and local income and federal excise tax
returns for which the applicable statutes of limitations have not expired
(current and prior three years) are subject to examination by the Internal
Revenue Service and state departments of revenue.
9. LINE OF CREDIT
The
Fund Complex (except Baron Partners Fund and the ETFs), participates in a
committed line of credit agreement with State Street to be used for temporary
purposes, primarily for financing redemptions. Each fund may borrow up to the
lesser of $200 million or the maximum amount each fund may borrow under the
1940 Act, the limitations included in each fund’s prospectus, or any limit or
restriction under any law or regulation to which each fund is subject or any
agreement to which each fund is a party; provided that the aggregate outstanding
principal amount of all loans to any of the funds may not exceed
$200 million. Interest is charged to each fund, based on its borrowings, at
a rate per annum equal to the higher of the OBFR plus 0.10% or the Federal Funds
Effective Rate plus 0.10%; plus a margin of 1.00%. An upfront fee of 0.05% is
incurred on the commitment amount and a commitment fee of 0.20% per annum is
incurred on the unused portion of the line of credit. Both fees are allocated to
the participating funds based on their relative net assets.
20
|
|
| |
| December 31, 2025 |
|
Baron ETF
Trust |
NOTES TO FINANCIAL
STATEMENTS (Continued)
9. LINE OF
CREDIT (Continued)
During
the year ended December 31, 2025, the following Funds had borrowings under
the line of credit as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
| |
| Fund |
|
Average Daily
Loan
Balance |
|
|
Maximum
Daily
Loan
Outstanding |
|
|
Weighted
Average
Interest Rate* |
|
|
Number
of
Days
Borrowing
Outstanding |
|
|
Outstanding
Balance as of
12/31/2025 |
|
|
Baron
Financials ETF(a) |
|
$ |
8.3 million |
|
|
$ |
10.3 million |
|
|
|
5.05 |
% |
|
|
5 |
|
|
$ |
— |
|
| (a) |
Represents
Predecessor Fund activity. |
10. SUBSEQUENT EVENTS
Management
has evaluated events occurring subsequent to the date of the Statements of
Assets and Liabilities and through the date of issuance of the financial
statements and has determined that there were no subsequent events that required
adjustment to or disclosure in the financial statements.
21
|
|
| |
| Baron ETF Trust |
|
December 31,
2025 |
FINANCIAL HIGHLIGHTS
BARON
FIRST PRINCIPLES ETF
Selected
data for a share outstanding throughout the period:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
| |
| |
|
Income (loss) from
investment
operations: |
|
|
Less distributions to
shareholders
from: |
|
|
|
|
|
Ratios to Average Net Assets: |
|
|
Supplemental
Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| |
|
Net
asset
value,
beginning
of
period
($) |
|
|
Net
investment
income
($)1 |
|
|
Net
realized
and
unrealized
gain
(loss)
($) |
|
|
Total
from
investment
operations
($) |
|
|
Net
investment
income
($) |
|
|
Net
realized
gains
($) |
|
|
Total
distributions
($) |
|
|
Net
asset value,
end
of
period
($) |
|
|
Total
return
(%)2 |
|
|
Total
expenses
(%) |
|
|
Net
investment
income
(loss)
(%) |
|
|
Net
assets (in
millions),
end of
period
($) |
|
|
Portfolio
turnover
rate
(%) |
|
|
|
Period
Ended December 31, |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
20255 |
|
|
25.10 |
|
|
|
0.00 |
6 |
|
|
(0.19 |
) |
|
|
(0.19 |
) |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
|
|
24.91 |
|
|
|
(0.73 |
)3 |
|
|
1.00 |
4 |
|
|
0.08 |
4 |
|
|
70.9 |
|
|
|
18 |
3,7 |
| 1 |
Based
on average shares outstanding. |
| 2 |
Total
returns reflect reinvestment of all dividends and distributions, if any.
|
| 5 |
For
the period December 12, 2025 (commencement of operations) to
December 31, 2025. |
| 6 |
Less
than $0.01 per share. |
| 7 |
Excludes
impact of in-kind transactions. |
|
|
| |
| 22 |
|
See Notes to Financial
Statements. |
|
|
| |
| December 31, 2025 |
|
Baron ETF
Trust |
FINANCIAL HIGHLIGHTS
(Continued)
BARON
GLOBAL DURABLE ADVANTAGE ETF
Selected
data for a share outstanding throughout the period:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
| |
|
|
|
|
Income (loss) from
investment
operations: |
|
|
Less distributions to
shareholders
from: |
|
|
|
|
|
|
|
|
Ratios to Average Net Assets: |
|
|
Supplemental
Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| |
|
Net
asset
value,
beginning
of
period
($) |
|
|
Net
investment
income
(loss)
($)1 |
|
|
Net
realized
and
unrealized
gain
(loss)
($) |
|
|
Total
from
investment
operations
($) |
|
|
Net
investment
income
($) |
|
|
Net
realized
gains
($) |
|
|
Total
distributions
($) |
|
|
Net
asset value,
end
of
period
($) |
|
|
Total
return
(%)2 |
|
|
Total
expenses
(%) |
|
|
Net
investment
income
(loss)
(%) |
|
|
Net
assets
(in millions),
end of
period
($) |
|
|
Portfolio
turnover
rate
(%) |
|
|
|
Period
Ended December 31, |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
20253 |
|
|
25.00 |
|
|
|
(0.01 |
) |
|
|
0.30 |
|
|
|
0.29 |
|
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
|
|
25.29 |
|
|
|
1.18 |
4 |
|
|
0.75 |
5 |
|
|
(0.44 |
)5 |
|
|
3.3 |
|
|
|
0 |
4,6,7 |
| 1 |
Based
on average shares outstanding. |
| 2 |
Total
returns reflect reinvestment of all dividends and distributions, if any.
|
| 3 |
For
the period December 12, 2025 (commencement of operations) to
December 31, 2025. |
| 7 |
Excludes
impact of in-kind transactions. |
|
|
| |
| See Notes to
Financial Statements. |
|
23 |
|
|
| |
| Baron ETF Trust |
|
December 31,
2025 |
FINANCIAL HIGHLIGHTS
(Continued)
BARON
SMID CAP ETF
Selected
data for a share outstanding throughout the period:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
| |
|
|
|
|
Income (loss) from
investment
operations: |
|
|
Less distributions to
shareholders
from: |
|
|
|
|
|
|
|
|
Ratios to Average Net Assets: |
|
|
Supplemental
Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| |
|
Net
asset
value,
beginning
of
period
($) |
|
|
Net
investment
income
(loss)
($)1 |
|
|
Net
realized
and
unrealized
gain
(loss)
($) |
|
|
Total
from
investment
operations
($) |
|
|
Net
investment
income
($) |
|
|
Net
realized
gains
($) |
|
|
Total
distributions
($) |
|
|
Net
asset value,
end
of
period
($) |
|
|
Total
return
(%)2 |
|
|
Total
expenses
(%) |
|
|
Net
investment
income
(loss)
(%) |
|
|
Net
assets (in
millions),
end
of
period
($) |
|
|
Portfolio
turnover
rate
(%) |
|
|
|
Period
Ended December 31, |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
20253 |
|
|
24.56 |
|
|
|
(0.00 |
)4 |
|
|
(0.46 |
) |
|
|
(0.46 |
) |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
|
|
24.10 |
|
|
|
(1.87 |
)5 |
|
|
0.75 |
6 |
|
|
(0.29 |
)6 |
|
|
15.9 |
|
|
|
1 |
5,7 |
| 1 |
Based
on average shares outstanding. |
| 2 |
Total
returns reflect reinvestment of all dividends and distributions, if any.
|
| 3 |
For
the period December 12, 2025 (commencement of operations) to
December 31, 2025. |
| 4 |
Less
than $0.01 per share. |
| 7 |
Excludes
impact of in-kind transactions. |
|
|
| |
| 24 |
|
See Notes to Financial
Statements. |
|
|
| |
| December 31, 2025 |
|
Baron ETF
Trust |
FINANCIAL HIGHLIGHTS
(Continued)
BARON
FINANCIALS ETF3
Selected
data for a share outstanding throughout each year:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
| |
|
|
|
|
Income (loss) from
investment
operations: |
|
|
Less distributions to
shareholders
from: |
|
|
|
|
|
|
|
|
Ratios to Average Net Assets: |
|
|
Supplemental
Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| |
|
Net
asset
value,
beginning
of
year
($) |
|
|
Net
investment
income
(loss)
($)1 |
|
|
Net
realized
and
unrealized
gain
(loss)
($) |
|
|
Total
from
investment
operations
($) |
|
|
Net
investment
income
($) |
|
|
Net
realized
gains
($) |
|
|
Total
distributions
($) |
|
|
Net
asset value,
end of
year
($) |
|
|
Total
return
(%)2 |
|
|
Gross
expenses
(%) |
|
|
Net
expenses
(%) |
|
|
Net
investment
income
(loss)
(%) |
|
|
Net
assets (in
millions),
end
of
year
($) |
|
|
Portfolio
turnover
rate
(%) |
|
|
|
Year
Ended December 31, |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
2025 |
|
|
24.64 |
|
|
|
(0.07 |
) |
|
|
0.29 |
|
|
|
0.22 |
|
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
|
|
24.86 |
|
|
|
0.91 |
4 |
|
|
1.07 |
5 |
|
|
0.95 |
5 |
|
|
(0.29 |
) |
|
|
56.6 |
|
|
|
14 |
6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
2024 |
|
|
20.01 |
|
|
|
(0.03 |
) |
|
|
4.66 |
|
|
|
4.63 |
|
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
|
|
24.64 |
|
|
|
23.14 |
4 |
|
|
1.13 |
|
|
|
0.95 |
|
|
|
(0.13 |
) |
|
|
69.1 |
|
|
|
11 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
2023 |
|
|
15.72 |
|
|
|
(0.01 |
) |
|
|
4.30 |
|
|
|
4.29 |
|
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
|
|
20.01 |
|
|
|
27.31 |
4 |
|
|
1.21 |
|
|
|
0.95 |
|
|
|
(0.11 |
) |
|
|
59.6 |
|
|
|
16 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
2022 |
|
|
23.89 |
|
|
|
(0.06 |
) |
|
|
(7.90 |
) |
|
|
(7.96 |
) |
|
|
0.00 |
|
|
|
(0.21 |
) |
|
|
(0.21 |
) |
|
|
15.72 |
|
|
|
(33.30 |
)4 |
|
|
1.20 |
5 |
|
|
0.95 |
5 |
|
|
(0.30 |
) |
|
|
42.6 |
|
|
|
27 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
2021 |
|
|
20.71 |
|
|
|
(0.14 |
) |
|
|
3.32 |
|
|
|
3.18 |
|
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
|
|
23.89 |
|
|
|
15.35 |
4 |
|
|
1.18 |
|
|
|
0.95 |
|
|
|
(0.60 |
) |
|
|
78.3 |
|
|
|
12 |
|
| 1 |
Based
on average shares outstanding. |
| 2 |
Total
returns reflect reinvestment of all dividends and distributions, if any.
|
| 3 |
After
the close of business on December 12, 2025, Baron FinTech Fund (the
Predecessor Fund) was reorganized into Baron Financials ETF. The amounts
disclosed for periods prior to the reorganization reflect those of the
Predecessor Fund’s Institutional Shares; share amounts have been adjusted
to reflect the conversion ratio of the Predecessor Fund’s shares to Baron
Financials ETF shares. Refer to Note 1 in the Notes to Financial
Statements for additional information. |
| 4 |
The
total returns would have been lower had certain expenses not been reduced
during the period shown. |
| 5 |
Includes
interest expense of 0.01%. |
| 6 |
Excludes
impact of in-kind transactions. |
|
|
| |
| See Notes to
Financial Statements. |
|
25 |
|
|
| |
| Baron ETF Trust |
|
December 31,
2025 |
FINANCIAL HIGHLIGHTS
(Continued)
BARON
TECHNOLOGY ETF3
Selected
data for a share outstanding throughout each year:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
| |
|
|
|
|
Income (loss) from
investment
operations: |
|
|
Less distributions to
shareholders
from: |
|
|
|
|
|
|
|
|
Ratios to Average Net Assets: |
|
|
Supplemental
Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| |
|
Net
asset
value,
beginning
of
year
($) |
|
|
Net
investment
income
(loss)
($)1 |
|
|
Net
realized
and
unrealized
gain
(loss)
($) |
|
|
Total
from
investment
operations
($) |
|
|
Net
investment
income
($) |
|
|
Net
realized
gains
($) |
|
|
Total
distributions
($) |
|
|
Net
asset value,
end
of
year
($) |
|
|
Total
return
(%)2 |
|
|
Gross
expenses
(%) |
|
|
Net
expenses
(%) |
|
|
Net
investment
income
(loss)
(%) |
|
|
Net
assets (in
millions),
end
of
year
($) |
|
|
Portfolio
turnover
rate
(%) |
|
|
|
Year
Ended December 31, |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
2025 |
|
|
21.51 |
|
|
|
(0.14 |
) |
|
|
3.87 |
|
|
|
3.73 |
|
|
|
0.00 |
|
|
|
(0.18 |
) |
|
|
(0.18 |
) |
|
|
25.06 |
|
|
|
17.34 |
4,5 |
|
|
1.05 |
|
|
|
0.93 |
|
|
|
(0.60 |
) |
|
|
149.1 |
|
|
|
58 |
6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
2024 |
|
|
14.55 |
|
|
|
(0.10 |
) |
|
|
7.06 |
|
|
|
6.96 |
|
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
|
|
21.51 |
|
|
|
47.80 |
4 |
|
|
1.35 |
|
|
|
0.95 |
|
|
|
(0.54 |
) |
|
|
56.0 |
|
|
|
36 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
2023 |
|
|
8.91 |
|
|
|
(0.06 |
) |
|
|
5.70 |
|
|
|
5.64 |
|
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
|
|
14.55 |
|
|
|
63.38 |
4 |
|
|
5.04 |
|
|
|
0.95 |
|
|
|
(0.48 |
) |
|
|
9.0 |
|
|
|
27 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
20227 |
|
|
15.99 |
|
|
|
(0.06 |
) |
|
|
(7.02 |
) |
|
|
(7.08 |
) |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
|
|
8.91 |
|
|
|
(44.30 |
)4 |
|
|
6.42 |
|
|
|
0.95 |
|
|
|
(0.55 |
) |
|
|
3.3 |
|
|
|
19 |
|
| 1 |
Based
on average shares outstanding. |
| 2 |
Total
returns reflect reinvestment of all dividends and distributions, if any.
|
| 3 |
After
the close of business on December 12, 2025, Baron Technology Fund (the
Predecessor Fund) was reorganized into Baron Technology ETF. The amounts
disclosed for periods prior to the reorganization reflect those of the
Predecessor Fund’s Institutional Shares; share amounts have been adjusted
to reflect the conversion ratio of the Predecessor Fund’s shares to Baron
Technology ETF shares. Refer to Note 1 in the Notes to Financial
Statements for additional information. |
| 4 |
The
total returns would have been lower had certain expenses not been reduced
during the period shown. |
| 5 |
The
Adviser made a voluntary payment to the Predecessor Fund in the amount of
$83,210 to compensate the Predecessor Fund for a loss incurred due to a
trading error. The impact of this payment increased the Fund’s total
return by 0.06%. |
| 6 |
Excludes
impact of in-kind transactions.
|
| 7 |
For
the period January 3, 2022 (commencement of operations) to
December 31, 2022. |
|
|
| |
| 26 |
|
See Notes to Financial
Statements. |
|
|
| |
| December 31, 2025 |
|
Baron ETF
Trust |
Report of Independent
Registered Public Accounting Firm
To
the Board of Trustees of Baron ETF Trust and Shareholders of Baron Financials
ETF, Baron First Principles ETF, Baron Global Durable Advantage ETF, Baron SMID
Cap ETF and Baron Technology ETF
Opinions on the Financial
Statements
We
have audited the accompanying statements of assets and liabilities, including
the portfolios of investments, of each of the funds listed in the table below
(constituting Baron ETF Trust, hereafter collectively referred to as the
“Funds”) as of December 31, 2025, the related statements of operations and
changes in net assets for each of the periods indicated in the table below,
including the related notes, and the financial highlights for each of the
periods indicated therein (collectively referred to as the “financial
statements”). In our opinion, the financial statements present fairly, in all
material respects, the financial position of each of the Funds listed in the
table below as of December 31, 2025, the results of each of their
operations and the changes in each of their net assets for each of the periods
indicated in the table below and each of the financial highlights for each of
the periods indicated therein, in conformity with accounting principles
generally accepted in the United States of America.
|
|
| Fund |
|
|
Baron
Financials ETF(1) |
|
|
Baron
First Principles ETF(2) |
|
|
Baron
Global Durable Advantage ETF(2) |
|
|
Baron
SMID Cap ETF(2) |
|
|
Baron
Technology ETF(1) |
| (1) |
Statement
of operations for the year ended December 31, 2025 and statement of
changes in net assets for the years ended December 31, 2025 and 2024
|
| (2) |
Statement
of operations and statement of changes in net assets for the period
December 12, 2025 (commencement of operations) through
December 31, 2025 |
Basis for Opinions
These
financial statements are the responsibility of the Funds’ management. Our
responsibility is to express an opinion on the Funds’ financial statements based
on our audits. We are a public accounting firm registered with the Public
Company Accounting Oversight Board (United States) (PCAOB) and are required to
be independent with respect to the Funds in accordance with the U.S. federal
securities laws and the applicable rules and regulations of the Securities and
Exchange Commission and the PCAOB.
We
conducted our audits of these financial statements in accordance with the
standards of the PCAOB. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial statements are
free of material misstatement, whether due to error or fraud.
Our
audits included performing procedures to assess the risks of material
misstatement of the financial statements, whether due to error or fraud, and
performing procedures that respond to those risks. Such procedures included
examining, on a test basis, evidence regarding the amounts and disclosures in
the financial statements. Our audits also included evaluating the accounting
principles used and significant estimates made by management, as well as
evaluating the overall presentation of the financial statements. Our procedures
included confirmation of securities owned as of December 31, 2025 by
correspondence with the custodian, issuers of privately offered securities, and
brokers; when replies were not received from brokers, we performed other
auditing procedures. We believe that our audits provide a reasonable basis for
our opinions.
/s/
PricewaterhouseCoopers LLP
New
York, New York
February 27,
2026
We
have served as the auditor of one or more investment companies in the Baron
group of funds since 1987.
27
|
|
| |
| Baron ETF Trust |
|
December 31, 2025 |
TAX INFORMATION
(Unaudited)
The
federal tax status of distributions paid by the Funds during the year ended
December 31, 2025 are listed below.
During
the fiscal year ended December 31, 2025, the Funds’ distributions to
shareholders included.
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
| |
| Fund |
|
Ordinary
Income1,3 |
|
|
Long-Term
Capital Gains2,3 |
|
|
Return of
Capital |
|
|
|
|
| |
|
Baron
First Principles ETF |
|
$ |
— |
|
|
$ |
— |
|
|
|
— |
|
|
|
|
| |
|
Baron
Global Durable Advantage ETF |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
| |
|
Baron
SMID Cap ETF |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
| |
|
Baron
Financials ETF |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
| |
|
Baron
Technology ETF |
|
|
204,529 |
|
|
|
541,750 |
|
|
|
— |
|
| 1 |
For
tax purposes, short-term capital gains are considered ordinary income
distributions. |
| 2 |
Long-term
capital gains are subject to a maximum allowable rate of 20% for
individuals pursuant to the Tax Cut and Jobs Act of 2017.
|
| 3 |
Under
the Patient Protection and Affordable Care Act, higher income taxpayers
must pay a 3.8% additional tax on net investment income.
|
Of
the total ordinary income distributions paid by Baron Technology ETF, 49.01% is
qualified dividend income subject to a reduced tax rate. Of the total ordinary
income distributions paid by Baron Technology ETF, 35.27% qualifies for the
corporate dividends received deduction.
The
information and distributions reported may differ from the information and
distributions taxable to the shareholders for the calendar year ended December
31, 2025. The information necessary to complete your income tax return for the
calendar year ended December 31, 2025 will be listed on the Form 1099-DIV, which
was mailed to you in January 2026.
28
|
|
| |
| December 31, 2025 |
|
Baron ETF
Trust |
CHANGES IN AND
DISAGREEMENTS WITH ACCOUNTANTS
FOR
THE PERIOD COVERED BY THIS REPORT
Not
applicable.
RESULTS OF MEETING(S) OF
SHAREHOLDERS
FOR
THE PERIOD COVERED BY THIS REPORT
Not
applicable.
REMUNERATION PAID TO
DIRECTORS, OFFICERS AND OTHERS
FOR
THE PERIOD COVERED BY THIS REPORT
Refer
to the financial statements included herein.
29
|
|
| |
| Baron Select Funds |
|
December 31,
2025 |
DISCLOSURE REGARDING THE
APPROVAL OF THE INVESTMENT ADVISORY AGREEMENTS BY THE BOARD OF TRUSTEES
(Unaudited)
The
Board of Trustees (the “Board” or the “Trustees”) of Baron ETF Trust (the
“Trust”) met on August 5, 2025 (the “Meeting”) to discuss the selection of
BAMCO, Inc. (the “Adviser”) as the investment adviser and the approval of the
investment advisory agreements for Baron First Principles ETF, Baron Global
Durable Advantage ETF, Baron SMID Cap ETF, Baron Financials ETF and Baron
Technology ETF (each, a “Fund” and collectively, the “Funds”). The members of
the Board who are not “interested persons” (as defined in the Investment Company
Act of 1940, as amended) of the Trust (the “Independent Trustees”) met in a
separate session to discuss and consider the initial approval of the investment
advisory agreements for the Funds. Broadridge Financial Solutions, Inc.
(“Broadridge”), an independent provider of investment company data, provided
reports to the Board. The Trustees received a substantial amount of information
from the Adviser and from Broadridge, and the Independent Trustees were advised
by independent legal counsel. Based on its evaluation of this and other
information, the Board, including a majority of the Independent Trustees,
approved the investment advisory agreements for the Funds for an initial two-year period.
In
reaching its determination, the Board considered various factors that it deemed
relevant, including the factors listed below.
1. NATURE, EXTENT AND
QUALITY OF SERVICES
The
Trustees considered the information provided, including their experience and
knowledge gained from their service as Trustees as Board members of other funds
advised by the Adviser and their experience generally, including the following,
which they had considered in past years and remained, in their thinking,
material to their consideration:
| |
• |
|
Their
confidence in the senior personnel, portfolio management, the financial
condition of the Adviser and its affiliates and the Adviser’s available
resources; |
| |
• |
|
The
nature, extent and quality of the services to be provided by the Adviser,
including: intensive devotion to research, selection of broker/dealers for
Fund portfolio transactions, relationships with and supervision of third
party service providers, such as the Funds’ custodian and transfer agent,
the quality of shareholder reports, the ability to monitor adherence to
investment guidelines and restrictions, the legal, accounting and
compliance services provided to the Funds and the support services
provided to the Board; |
| |
• |
|
The
Trustees noted that because the Funds had not yet commenced operations,
there was no performance information to consider. However, the Trustees
did consider the Adviser’s investment principles and processes and the
historical performance of other funds managed by the Adviser;
|
| |
• |
|
The
proposed advisory fees and estimated total expense ratios of the Funds and
comparisons to similar funds managed by other advisers over comparable
periods. They observed that, for most of the Funds, while the advisory fee
was comparatively higher, the estimated net operating expenses to be paid
by the Funds (total expense ratio) were within the range of those of the
funds in their respective peer groups; and |
| |
• |
|
Additional
services to be provided by the Adviser. |
The
Board concluded that the nature, extent and quality of the services the Adviser
anticipates providing to each Fund, including performance consistent with its
investing principles, supported approval of the investment advisory agreement
for each Fund.
2. INVESTMENT PERFORMANCE
OF THE FUNDS AND THE ADVISER
The
Trustees noted that because the Funds had not yet commenced operations, there
was no performance information to consider. The Trustees evaluated each Fund’s
estimated total operating expense ratio. The Trustees considered that the
investment advisory agreement provided for a “unitary fee” structure pursuant to
which the Funds’ ordinary operating expenses (subject to customary exclusions)
would be paid from the Adviser’s management fee.
As
part of its consideration of the investment advisory agreements, the Board took
into account the analyses performed by Broadridge. The Board considered for each
Fund, among other information, Broadridge’s comparisons of each Fund’s estimated
expense ratios with those of peer group funds selected by Broadridge and
Morningstar category medians.
3. COSTS OF SERVICES
PROVIDED AND PROFITS TO BE REALIZED BY THE ADVISER
The
Board considered comparisons of the proposed advisory fees to be charged against
peer groups with similar asset sizes, as well as fee components ranked relative
to Morningstar Categories and peer groups. The Board also considered the
services to be provided by the Adviser.
The
Board further considered benefits that could potentially accrue to the Adviser
and its affiliates from their relationship with the Funds. The Board considered
the costs of portfolio management, including the types of investments made for
the Funds, the personnel and systems necessary for implementation of investment
strategies, and the pre-tax profits
realized by the Adviser and its affiliates from their relationship with the
Funds.
4. ECONOMIES OF SCALE AND
BENEFITS TO INVESTORS
The
Board considered the extent to which economies of scale may be realized as the
Funds grow and whether anticipated fee levels reflected these economies of scale
for the benefit of shareholders. The Trustees considered that each Fund would
likely experience benefits from the proposed unitary fee arrangement pursuant to
which the Funds’ ordinary operating expenses (subject to certain exclusions)
would be paid from the Adviser’s management fee.
The
Board considered that the Adviser was continuing to grow and upgrade its staff
and invest in its business. The Board members reiterated their intention to
continue to consider the extent of economies of scale, future asset growth and
the Adviser’s plans to invest further to support the Funds.
The
Board concluded that the advisory fee for each Fund was supported by the
entirety of the presentation and particularly in light of the services to be
provided to the Funds as discussed at the Meeting.
After
due consideration of the above-enumerated factors and other factors it deemed
relevant, the Board, including a majority of the Independent Trustees, approved
each Fund’s investment advisory agreement.
30
ANNUAL ETF 12/31/2025
