Baron Financials ETF

Visa Inc. (V) operates a global payment network that connects consumers, businesses, and banks. It authorizes and settles electronic payments.
Visa Inc. (V) should benefit from consumer spending growth and the secular shift from cash to electronic payments, particularly outside the U.S., where digital adoption remains less penetrated. Visa's trusted brand, global acceptance network, and relationships with financial institutions create durable competitive advantages. Strong cash generation supports continued investment, dividends, and share repurchases.

Mastercard Incorporated (MA) operates a global payment network that connects consumers, businesses, and banks. It authorizes and settles electronic payments.
Mastercard Incorporated (MA) should benefit from consumer spending growth and the secular shift from cash to electronic payments, particularly in international markets where digital adoption remains relatively low. Its global acceptance network, trusted brand, and relationships with financial institutions represent durable competitive advantages. Revenue growth and operating leverage should support margin expansion and strong free cash flow, enabling continued investment, acquisitions, dividends, and share repurchases.

JPMorgan Chase & Co. (JPM) provides consumer and community banking, commercial and investment banking, and asset and wealth management services to consumers, businesses, governments, and institutions worldwide.
JPMorgan Chase & Co. (JPM) has scale, technology, and a broad product suite that create durable competitive advantages and support strong through-cycle returns. We believe that growth should come from share gains in middle-market banking, wealth management, and payments, as well as productivity improvements from AI and other technology investments. Management’s disciplined capital allocation, prudent risk management, and consistent execution position the bank to compound earnings and tangible book value at attractive rates over time.

S&P Global Inc. (SPGI) is a leading credit rating agency and provides benchmarks, analytics, and data to the financial and commodities markets.
S&P Global Inc. (SPGI) should benefit from long-term growth in rated debt issuance, the shift toward passive investing, and rising demand for data and analytics. Its leading brands, proprietary data, embedded workflows, and high switching costs create durable competitive advantages. Strong free cash flow supports continued investment, acquisitions, share repurchases, and dividends.

Bank of America Corporation (BAC) provides consumer banking, wealth and investment management, corporate lending, and global markets trading and advisory services to consumers, small businesses, and institutions.
Bank of America Corporation (BAC) should see its growth and returns improve, following years of balance sheet de-risking and pressure from low interest rates. Earnings should benefit from fixed-rate assets repricing at higher yields, loan and deposit growth, rising capital markets and wealth management fees, and positive operating leverage. Greater capital returns could add upside and support management’s 16% to 18% medium-term target for returns on tangible common equity. Its low-cost deposit base, scale, and technology capabilities provide durable competitive advantages.

Moody's Corporation (MCO) is a global credit rating agency, providing credit ratings, research, professional services, and risk management software to financial institutions.
Moody's Corporation (MCO) should benefit from long-term growth in debt issuance as global borrowing expands and capital markets gain share from bank lending. We expect Moody’s Analytics to deliver steady revenue growth through new sales, product enhancements, and pricing. Operating leverage and efficiency initiatives should support margin expansion. Strong free cash flow provides capacity for acquisitions, share repurchases, and dividends.

MSCI Inc. (MSCI) is the leading provider of investment decision-support tools, offering equity indexes widely used by active and passive funds, risk and portfolio analytics, private markets data and analytics, and ESG and climate tools to the investment ecosystem worldwide.
MSCI Inc. (MSCI), the de facto standard for measuring global market performance, is, we believe, positioned to benefit from the continuing development of emerging markets, passive investing, sustainability, and the growth of global financial assets. We believe the company's indexes remain the global standard for cross-border investing and will continue to be selected by institutions when issuing new mandates. MSCI’s index products, multi-asset portfolio tools, and risk analytics are mission-critical and deeply embedded in client workflows.

The Charles Schwab Corporation (SCHW) is the largest publicly traded retail brokerage and registered investment advisor custodian in the U.S., offering trading, wealth management, banking, and asset management services to retail investors and independent advisors.
The Charles Schwab Corporation (SCHW), through its emphasis on customer trust, has become a sterling brand in financial services. We believe its investor services division is well positioned to take share from traditional brokerages, while its institutional business continues to gain RIA relationships. The company has made acquisitions that have broadened its product offering and brought new customers onto the platform. As a result, we expect Schwab to retain clients while further lowering its industry-leading cost per client asset.

Morgan Stanley (MS) is a global financial services firm providing investment banking and capital-raising, sales and trading, wealth management, and investment management services to corporations, governments, institutions, and individuals.
Morgan Stanley (MS) has a leading wealth management franchise that should continue compounding through strong net new asset growth. Its Financial Advisor, Workplace, and E*TRADE channels—combined with its preeminent investment banking franchise—create a broad client-acquisition funnel and opportunities to deepen relationships across the firm. We expect this integrated model to support sustained growth in client assets and earnings, while increasing the contribution from more recurring revenue streams.

Interactive Brokers Group, Inc. (IBKR) is a low-cost, highly automated electronic brokerage serving retail and institutional clients in over 200 countries across equities, options, futures, forex, fixed income, and crypto. It earns revenue from trading commissions and net interest income on client balances.
Interactive Brokers Group, Inc. (IBKR) is gaining share due to its broad product offering, quality of execution, and low trading costs. We expect the company to continue growing rapidly through international expansion as more investors globally seek to invest in financial markets. Interactive Brokers' competitive advantage comes from automation through best-in-class software engineering, which enables it to offer brokerage at industry-low prices to customers. Founder and Chairman Thomas Peterffy is well regarded and is the company's largest shareholder.