Baron First Principles ETF NAV Drops 8.51% in Q1 Despite Strong FIGS Revenue

Key Facts

Amid shifting global equity dynamics and pressure on growth sectors, specialized investment vehicles are navigating a complex start to the year. Baron First Principles ETF recorded an 8.51% decline in its Net Asset Value (NAV) during the first quarter of 2026, a move largely attributed to broader market trends reflected in the Russell 3000 Growth Index. Despite the overall decline, portfolio constituent FIGS, Inc. delivered a robust performance, with revenues expanding 33% to reach $201.9 million, effectively exceeding market expectations.

The ETF's quarterly performance mirrors a period of heightened volatility, where growth-oriented assets faced headwinds from persistent inflationary data. Per market data, the UK annual inflation rate stood at 2.8% in May 2026, slightly below the 3% forecast but still impacting investor sentiment, while Eurozone CPI held steady at 2.2% as of May 20, 2026. FIGS, Inc. managed to counter some of these macro pressures by demonstrating strong momentum across various product categories and geographic regions, helping the fund slightly outperform its benchmark.

Investors should look toward the upcoming release of the FOMC minutes for clarity on the future trajectory of interest rates and growth equity valuations. Additionally, global Manufacturing and Services PMI data will serve as critical catalysts for assessing corporate resilience in the face of current economic conditions.