How BCGD Capitalizes on Long-Term Compounding
Up over 20% over the past 12 months through June 8, 2026, the MSCI ACWI Growth Index continues its upward trajectory, despite geopolitical frictions that temporarily set the index back earlier this year. That said, investors looking to ride the momentum of global growth for the long term will want to take a closer look at Baron Global Durable Advantage ETF (BCGD).
See More: Baron Capital Adds Risk-Optimized Large-Cap ETF to Lineup
In a market often fixated on short-term quarterly bets, BCGD focuses on true wealth creation over the long term. The fund is actively managed, allowing its portfolio managers to build a high-conviction portfolio that seeks growth opportunities that passive indexes may miss.
Endurance Over Speed
While traditional growth strategies focus heavily on rapid, near-term revenue spikes, BCGD approaches growth through a different lens. The fund’s portfolio managers prioritize long-term, durable growth over speed.
Managed by Alex Umansky and Guy Tartakovsky, BCGD targets global leaders with differentiated business models and sustainable competitive advantages. The strategy focuses on the endurance of a company’s market position rather than on temporary macroeconomic tailwinds that propel the company’s stock price in the short term. In investing terminology, this means focusing on “N” (years/duration of growth) as opposed to “G” (growth rate).
“The ETF invests in established leaders that we believe can sustain growth over long periods (the N rather than the G), supported by differentiated business models and high-quality management teams,” Tartakovsky noted in a portfolio managers Q&A. “Our focus on the N enables us to uncover and hold on to great businesses, benefiting from the long-term compounding of their value.”
To build its high-conviction portfolio, the fund employs a fundamental, bottom-up active management framework, built stock by stock. Portfolio construction is informed by proprietary research and conviction about the future growth prospects of each business. Every holding must exhibit long-term growth potential, durable competitive advantages, exceptional leadership, and compelling valuations.
Long-Term Fundamental Focus
Rather than rely on backward-looking data screens, the portfolio managers determine intrinsic value through long-term fundamental drivers. This forward-looking approach allows the fund to position itself ahead of market movements.
“We focus on understanding disruptive change and the opportunities it creates, employing a fundamental, bottom-up, long-term active management approach that focuses on a company’s intrinsic value by forecasting fundamental value drivers,” Tartakovsky explained.
For investors, BCGD offers an active, high-conviction, forward-looking approach to global growth investing that can serve as a compelling long-term alternative to a more traditional global growth allocation.
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