Baron Capital Launches Thematic SpaceX ETF

- Baron Capital is already a significant investor in SpaceX, holding approximately $10 billion worth of the private company across its funds. The new thematic ETF is part of a broader strategy that includes five new active ETFs launched in December 2025. - The flagship fund in this new lineup, the Baron First Principles ETF (RONB), recently allocated as much as 21.5% of its portfolio to SpaceX. It also holds a stake in Elon Musk's artificial intelligence company, xAI. - To accommodate such a large holding in a private company, Baron Capital classifies its SpaceX investment as "less-liquid" rather than "illiquid," navigating an SEC rule that typically caps illiquid assets at 15% of a fund's portfolio. - This ETF joins a small but growing group of funds offering retail investors exposure to private companies, a market historically reserved for institutional and high-net-worth investors. Other ETFs providing access to SpaceX include the Destiny Tech 100 ETF (DXYZ) and the Entrepreneur Private-Public Crossover ETF (XOVR). - The firm's deep ties with Musk's ventures are evident, with the Baron Partners Fund (BPTRX) once having a position in SpaceX that grew to 32% of its net assets. - Other thematic funds focused on the aerospace sector include the ARK Space & Defense Innovation ETF (ARKX) and the Procure Space ETF (UFO), though they primarily hold publicly traded companies. - Investor demand can impact the fund's composition; a rapid inflow of new capital into the Baron First Principles ETF recently diluted the SpaceX weighting from 21.5% to 14.4% as the new money was invested in more liquid public stocks.