Baron Financials ETF on Visa Inc.
Thesis
Baron continues to own Visa because it sees a long runway for growth and significant competitive advantages. Revenue and earnings grew strongly during the quarter, payment volumes remained resilient, and management raised fiscal-year guidance. Regulatory concerns that had pressured the shares earlier in the year also diminished after proposed adverse legislation stalled.
“We continue to own Visa given its long runway for growth and significant competitive advantages”
Key risks
- Potential adverse regulation affecting credit cards or payment routing