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Baron First Principles ETF bets heavily on SpaceX after earnings surge
SpaceX reported 92% year-over-year revenue growth, with connectivity revenue up 66% and operating income up 79%, supporting the ETF’s more than 30% allocation to the company.
Funds that concentrate in a single stock often signal high conviction, and that strategy is reflected in the Baron First Principles ETF (RONB). The ETF holds a position in SpaceX of over 30%, as of August 4, 2026, and ETF Trends pointed to SpaceX’s Q2 2026 earnings report as validation for that approach.
SpaceX’s results highlighted broad expansion across its space, connectivity, and AI divisions, including 92% year-over-year revenue growth. In connectivity, Starlink subscriber growth doubled year-over-year, with connectivity revenue up 66% and income from operations rising 79%.
The report also said SpaceX is strengthening its government and enterprise footprint, including Starshield securing over $6 billion in multi-year U.S. government contracts. SpaceX additionally reported $14.1 billion in contracted sales under new cloud services agreements and introduced Grok 4.5, the latest version of its AI platform.
Looking at future capacity and vertical integration, SpaceX completed two successful Starship V3 flight tests over the prior 90 days toward full and rapid reusability. ETF Trends also cited SpaceX’s announced $60 billion agreement to acquire AI coding platform Cursor, framing it as part of the company’s push into enterprise software and AI.