ETF Evaluator:
Baron Financials ETF ()
Follow This ETF
(as of Aug 26)
Best Performing in Financial Over the Last Year
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ETF Details
Baron Financials ETF Overview
Baron Financials ETF (BCFN) is an actively managed Sector Equity Financial exchange-traded fund (ETF). Baron Capital Group, Inc. launched the ETF in 2019.
The investment seeks capital appreciation.
Under normal circumstances, the fund invests at least 80% of its net assets in securities of companies that develop, use, or rely on innovative technologies or services, in a significant way, for banking, lending, capital markets, financial data analytics, insurance, payments, asset management, or wealth management. It may purchase securities of companies of any market capitalization and may invest in foreign stocks, including emerging market securities.
About Baron Financials ETF (BCFN)
There are 1 members of the management team with an average tenure of 6.59 years: Josh Saltman (2019). Management tenure is more important for actively managed ETFs than passive index ETFs.
The ETF has 2 primary benchmarks: MSCI USA/Financials NR USD index with a weighting of 100% and S&P 500 (TR) (1970) index with a weighting of 100%. Baron Financials ETF has 43 securities in its portfolio. The top 10 holdings constitute 44.7% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a diversified fund. The ETF is not considered to have an ESG focus with its investment selection and management.
Baron Financials ETF is part of the Equity global asset class and is within the Sector Equity ETF group. Baron Financials ETF has 9.2% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 90.6% There is 9.2% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). Baron Financials ETF has 0.2% of the portfolio in cash.
Assets Under Management
The fund has $48 million in total assets, which is below the $2 billion average for the Financial category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.
BCFN Performance and Fees
The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Baron Financials ETF expense ratio is high compared to funds in the Financial category. Baron Financials ETF has an expense ratio of 0.80%, which is 47% lower than its category average, making the fund expense ratio grade a D. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.
High portfolio turnover can translate to higher expenses and lower aftertax returns. Baron Financials ETF has a portfolio turnover rate of 14%, which indicates that it holds its assets around / 0.1 years. By way of comparison, the average portfolio turnover is 27% for the Financial category.
Recently, in the month of July 2026, Baron Financials ETF returned 6.6%, which earned it a grade of B, as the Financial category had an average return of 4.6%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all ETFs in that category.
Baron Financials ETF has a trailing yield of 0.00%, which is below the 3.85% category average.
The fund normally distributes its income annually.
It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.
Baron Financials ETF Grades
Year to date, the ETF has returned -8.8%, 13.6 percentage points worse than the category, which translates into a grade of F. The fund has returned -13.2% over the past year (grade of F), 7.8% over the past three years (grade of F) and -1.3% per year over the past five years (grade of F).
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BCFN Trailing NAV Total Returns Data as of 7/31/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| BCFN Return (NAV) | 6.6% | 4.2% | -13.2% | 7.8% | -1.3% | na |
| BCFN Return (Price) | 6.9% | 4.2% | -13.2% | 7.8% | -1.3% | na |
| NAV +/- Price Return | -0.238% | 0.007% | -0.002% | -0.001% | -0.000% | na |
| Financial Avg | 4.6% | 6.3% | 9.3% | 15.6% | 8.6% | 10.8% |
| BCFN Grade (NAV) | B | D | F | F | F | na |
| +/- Category (NAV) | 2.0% | -2.1% | -22.6% | -7.8% | -10.0% | na |
| BCFN Tax-Cost Ratio | na | na | 0.0% | 0.0% | 0.1% | na |
BCFN Annual NAV Total ReturnsData as of 7/31/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| BCFN Return (NAV) | -8.8% | 0.9% | 23.1% | 27.3% | -33.3% | 15.4% | 47.2% | na | na | na | na |
| BCFN Return (Price) | -8.9% | 1.1% | 23.1% | 27.3% | -33.3% | 15.4% | 47.2% | na | na | na | na |
| NAV +/- Price Ret | 0.015% | 0.161% | 0.000% | 0.000% | 0.000% | 0.000% | 0.000% | na | na | na | na |
| Financial Avg | 4.8% | 11.7% | 23.9% | 13.9% | -13.8% | 32.1% | -1.0% | 28.6% | -12.8% | 14.2% | 22.3% |
| BCFN Grade (NAV) | F | F | D | A | F | F | A | na | na | na | na |
| +/- Category | -13.6% | -10.8% | -0.8% | 13.4% | -19.5% | -16.7% | 48.2% | na | na | na | na |
| Risk Measures | |
| Beta: | 0.79 |
| R-Squared: | 38% |
| Standard Deviation: | 16.2% |
| Category Risk Index: | 0.95 |
| Category Risk Rating: | Average |
| Total Risk Index: | 1.32 |
| Total Risk Rating: | Above Average |
| Portfolio Characteristics | |
| Yield: | 0.0% |
| Total Assets: | $ 48 Mil |
| Share Class Assets: | $ 48 Mil |
| Turnover: | 14.0% |
| Expense Ratio: | 0.80% |
| Index Fund: | No |
| Index Tracked: | MSCI USA/Financials NR USD |
| Index Weighting: | 100% |
| Leveraged: | No |
| Socially Responsible Fund: | No |
| Capital Gains Distribution Frequency: | |
| Income Distribution Frequency: | Annually |
Management Team
| Number of Managers: 1 | |||
| Longest Tenure: 6.6 years | |||
| Average Tenure: 6.6 years | |||
| Managers (Year): Saltman Josh (2019) | |||
Portfolio Composition (as of 7/31/26)
| # of Holdings: | 43 |
| % in Top 10 Holdings: | 44.7% |
| Fund is Non-Diversified: | No |
| % in Foreign Issues: | 9.2% |
Portfolio Allocation |
|
| Domestic Stock: | 90.6% |
| Foreign Stock: | 9.2% |
| Preferred Stock: | 0.0% |
| Domestic Bond: | 0.0% |
| Foreign Bond: | 0.0% |
| Convertible Bond: | 0.0% |
| Other: | 0.0% |
| Cash: | 0.2% |
Purchase Information
| Legal Structure: | Open Ended Investment Company |
| Fund Family: | Baron Capital Group, Inc. |
| Phone Number: | 800-992-2766 |
| Website: | |
| Inception Date: | December 31, 2019 |
Expenses and Fees
| Expense Ratio (%): | 0.80% (Rating: High) |
| Category Average Expense Ratio (%): | 1.52% |
