Prior to the debut of SpaceX on the Nasdaq, one of the few ways to get exposure to this highly anticipated IPO was through Baron First Principles ETF (RONB) via publicly traded, transparent, liquid ETF shares. Just because it’s now public doesn’t mean the exposure stops.

Key Takeaways:

• SpaceX remains a core holding for RONB, representing nearly 19% of the ETF. This meaningful allocation reflects the fund’s long-term investment discipline and willingness to maintain outsized positions in high-conviction companies.
• The firm’s long standing relationship with Elon Musk, combined with the fund’s active investment approach, provided unique access to capture SpaceX’s explosive growth phases prior to its Nasdaq debut. This is an advantage traditional, passive index-tracking vehicles miss due to rigid listing timelines and backward-looking constraints.
• SpaceX earned its spot in the portfolio by meeting Baron Capital’s “First Principles” criteria, which evaluates a business by breaking it down to its fundamental growth drivers to have a better understanding of its competitive advantages and long-term opportunity.

The Top Holding in RONB

At just under a 19% allocation (as of 6/12/26), SpaceX continues to be a prominent holding in RONB’s portfolio. This position serves as a powerful testament to the fund’s active, high-conviction approach that invests in founder-led companies for the long term.

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Maintaining a stake in the pioneering aerospace and satellite enterprise allows the fund’s portfolio managers to capture continued growth even long after the much-anticipated IPO. Passive, index-tracking vehicles are systematically constrained by backward-looking market-cap weighting and rigid listing timelines, which makes them prone to missing out on early growth stages of a company’s lifecycle. RONB’s active framework, in contrast, enables the fund to maintain meaningful exposure to SpaceX as its long-term growth opportunity continues to unfold. The fund offers investors an opportunity for concentrated exposure to the commercial aerospace giant that traditional benchmarks are inherently unable to replicate.

A First Principles Company

As a prime holding in RONB, SpaceX passed the rigorous research tests inherent in Baron Capital’s “First Principles” philosophy. Being able to protect competitive advantages and ensure durable growth trajectories is a key feature that Baron Capital looks for in its investments prior to making an allocation.

Additionally, a core tenet of the “First Principles” philosophy is breaking businesses down to their fundamentals and then rebuilding them to discover their primary growth drivers. Elon Musk is known for thinking this way as well, which aligns with Baron Capital’s focus on investing in visionary founders whose ambition and long-term mindset align with our investment philosophy.

With SpaceX specifically, this approach highlights the company’s ability to evolve from a rocket startup to a vertically integrated tech titan. The company’s multifaceted business model features multiple interconnected businesses, such as Starlink and xAI, working in tandem as future revenue drivers. When asked about SpaceX during an interview with CNBC, Baron Capital founder Ron Baron was asked what excited him the most about SpaceX, and his answer was simply “everything.”

RONB also holds Tesla, another Musk-founded company. This further reflects a longstanding pillar of Baron Capital’s investment approach: backing founders with the vision, determination, and willingness to do what it takes to bring their companies to the next level.

Investors seeking early access to life-changing companies—and the opportunity to remain invested as they advance along their long-term growth trajectories—may find RONB a compelling option.

To learn more about the active ETFs offered by Baron Capital, click here.

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