Baron Global Durable Advantage ETF | Q3 2026

Summary

• The Baron Global Durable Advantage ETF declined 1.22% (NAV) in the third quarter of 2026, underperforming the MSCI ACWI Index which gained 1.60%.
• Year-to-date performance for the Fund was a 3.2% gain compared to a 13.0% gain for the Index.
• Top contributors to the Fund's performance were NVIDIA Corporation, Meta Platforms, Inc., CME Group, Inc., Thermo Fisher Scientific, Inc., Amazon.com, Inc., and Welltower.
• Top detractors included AppLovin Corporation, ASML Holding N.V., TransDigm Group Incorporated, Brookfield, and HEICO.
• The Fund initiated a position in Bajaj Finance Limited, India's largest non-bank financial company.
• The Fund added to its holding in CME Group, Inc.
• The total annual fund operating expense ratio as of April 30, 2026, was 0.75%.
• BAMCO, Inc. pays all Fund expenses except for portfolio transaction costs, interest, dividend expense, acquired fund fees, foreign tax reclaim expenses, line of credit expenses, and extraordinary expenses.
• The Fund underperformed the Index by 279 basis points, driven by 186 basis points of unfavorable stock selection and 93 basis points from sector allocation.
• Information Technology was the worst-performing sector for the Fund, responsible for 165 basis points of underperformance.
• Not owning Microsoft and Apple accounted for 149 basis points of the Fund's underperformance.
• The Fund did not own Energy stocks, which were the best-performing sector in the Index with a 14.7% gain.
• Health Care was the Fund's top-performing sector, contributing 31 basis points to relative results.
• NVIDIA reported $96 billion in revenue with 106% year-on-year growth and guided for 70% revenue growth in the next fiscal year.
• Meta Platforms reported U.S. advertising revenue growth of 31% and its AI-driven ad suite passed $75 billion in annual revenue run-rate.
• CME Group reported record trading activity with average daily volume reaching 29.4 million contracts, a 16% increase from the prior year.
• Broadcom reported 86% year-on-year revenue growth and guided its AI business to double in the next fiscal year.
• The Fund owns companies involved in AI buildout including NVIDIA, Broadcom, Taiwan Semiconductor, Monolithic Power Systems, Amphenol, ASML, Ajinomoto, Atlas Copco, Samsung, and Quanta Services.
• The Fund owns cloud players Amazon and Alphabet that operate AI factories.
• The Fund owns companies benefiting from AI in core businesses such as Meta, Google, Amazon, MercadoLibre, and AppLovin.
• Semiconductors dropped 10.3% in July while semiconductor materials and equipment dropped 25.3%.
• The 10-year Treasury yield rose by approximately 100 basis points during the period.
• Oil prices reached around $100 per barrel due to conflicts in Iran and Russia-Ukraine.
• The Fund's approach focuses on quality growth investing in durable compounders rather than blending aggressive growth with value stocks.