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BBH Select Mid Cap ETF points to Arista Networks as an AI beneficiary
In Q2 2026, the fund said Arista Networks returned 38.4% during the quarter, and its position carried a 5.1% weight at quarter end.
BBH Select Mid Cap ETF, an investment product managed by Brown Brothers Harriman, highlighted Arista Networks as a leading contributor tied to the AI infrastructure buildout in its Q2 2026 investor letter. The ETF reported Q2 2026 total return of 9.7%, underperforming the Russell Midcap Index’s 13.8% gain. In its review, the fund attributed differences in performance to factors including portfolio positioning, such as an overweight in technology and industrials and underweighting more cyclical stocks.
Arista Networks, described as a high-speed switching and cloud networking solutions provider for hyperscale users, was singled out among the top performance contributors. The letter said Arista returned 38.4% in the quarter and ended with a 5.1% weight.
The investor letter also cited company specific context, noting Arista’s first quarter performance featured record revenue and free cash flow ahead of expectations, while guidance fell short due to increasing supply chain shortages. It further said extended customer acceptance cycles on new AI products contributed to contracted demand shifting into deferred revenue.
At quarter end, the fund held positions in 27 companies, with 48% of assets concentrated in its top 10 holdings, and it targets companies priced below intrinsic value to maintain a margin of safety. As of August 19, 2026, Arista Networks closed at $186.45 per share, with a market capitalization of $235.15 billion.