Baron Financials ETF (BCFN)

The Baron Financials ETF (BCFN) is an actively managed sector fund sponsored by Baron Capital, the New York-based asset manager founded by Ron Baron.

The fund concentrates on companies in the financial services industry and related areas. Its universe can include banks, insurers, asset managers, exchanges, payment and financial technology companies, and providers of financial data and information services. Holdings are selected through Baron's bottom-up fundamental research rather than by following an index.

In line with Baron's broader investment philosophy, the managers favor businesses they believe have durable competitive advantages, capable management and the ability to grow over a long horizon, and they aim to hold investments for many years. Because it focuses on one sector, the fund's performance is closely tied to conditions in the financial industry.