Baron SMID-Cap ETF targets growth in small- and mid-cap stocks with strong fundamentals and AI-resistant software plays.

The Baron SMID-Cap ETF (BCSM) offers investors growth exposure by focusing on small- and mid-cap companies with strong fundamentals and potential to double in value over 3-5 years. The fund emphasizes durable growth opportunities, including enterprise software firms with physical data advantages that help shield against AI disruption. Managed actively with 50-60 holdings, BCSM balances risk while avoiding momentum chasing, providing an alternative to passive market-cap weighted ETFs. This approach leverages Baron Capital's extensive research expertise to find high-quality compounders in a less crowded market segment.