BCFN vs. BCSM

Last updated Jun 4, 2026

BCFN (Baron Financials ETF) and BCSM (Baron SMID Cap ETF) are both exchange-traded funds - BCFN is a Financials Equities fund tracking the Actively Managed, while BCSM is a Mid Cap Growth Equities fund actively managed by Baron Capital. BCFN is passively managed, while BCSM is actively managed. A 0.75 correlation means they provide meaningful diversification when combined. BCFN charges 0.80%/yr vs 0.75%/yr for BCSM.

Performance

BCFN vs. BCSM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Baron Financials ETF (BCFN) and Baron SMID Cap ETF (BCSM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, BCFN achieves a -17.02% return, which is significantly lower than BCSM's 0.41% return.

BCFN

• 1D: -2.00%
• 1M: -4.60%
• YTD: -17.02%
• 6M: —
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

BCSM

• 1D: -1.38%
• 1M: 6.09%
• YTD: 0.41%
• 6M: —
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

BCFN vs. BCSM - Yearly Performance Comparison

	2026 (YTD)	2025
BCFN Baron Financials ETF	-17.02%	0.35%
BCSM Baron SMID Cap ETF	0.41%	-0.51%

Correlation

The correlation between BCFN and BCSM is 0.75, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (All Time) Calculated using the full available price history since Dec 16, 2025	0.75

Return for Risk

BCFN vs. BCSM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Baron Financials ETF (BCFN) and Baron SMID Cap ETF (BCSM). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Risk / return metrics aren't available yet — we need at least 12 months of trading data to calculate them.

Sharpe Ratios by Period

	BCFN	BCSM	Difference
Sharpe Ratio (All Time) Calculated using the full available price history	-1.70	-0.01	-1.69

Drawdowns

BCFN vs. BCSM - Drawdown Comparison

The maximum BCFN drawdown since its inception was -20.95%, which is greater than BCSM's maximum drawdown of -17.45%. Use the drawdown chart below to compare losses from any high point for BCFN and BCSM.

Drawdown Indicators

	BCFN	BCSM	Difference
Max Drawdown Largest peak-to-trough decline	-20.95%	-17.45%	-3.50%
Current Drawdown Current decline from peak	-19.09%	-4.06%	-15.03%
Average Drawdown Average peak-to-trough decline	-12.17%	-7.36%	-4.81%

Volatility

Volatility by Period

	BCFN	BCSM	Difference
Volatility (1Y) Calculated over the trailing 1-year period	19.41%	20.15%	-0.74%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.41%	20.15%	-0.74%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.41%	20.15%	-0.74%

BCFN vs. BCSM - Expense Ratio Comparison

BCFN has a 0.80% expense ratio, which is higher than BCSM's 0.75% expense ratio.

Dividends

BCFN vs. BCSM - Dividend Comparison

Neither BCFN nor BCSM has paid dividends to shareholders.

Tickers have no history of dividend payments

Frequently Asked Questions

Can I hold both BCFN and BCSM in my portfolio?

BCFN and BCSM have a correlation of 0.75, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, BCFN or BCSM?

On fees, BCSM is cheaper at 0.75% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, BCFN or BCSM?

BCSM is cheaper with a 0.75% expense ratio, compared with 0.80% for BCFN.

Which ETF pays a higher dividend yield, BCFN or BCSM?

BCFN and BCSM have nearly identical dividend yields, around 0.00%.

What is the main difference between BCFN and BCSM?

BCFN is categorized as Financials Equities, while BCSM is Mid Cap Growth Equities. Their fees differ too: 0.80% for BCFN and 0.75% for BCSM.