BNY Mellon is rolling out an existing mutual fund strategy as the basis of its first actively managed ETF.
The BNY Mellon Ultra Short Income ETF (BKUI) launched on the NYSE Arca Wednesday with an expense ratio of 0.12% and $25 million in seed assets.
BKUI aims to produce monthly dividends from active management of a portfolio of government and investment-grade securities maturing between six and 12 months, with an emphasis on low volatility investments and protection during downside events.
In an email, BNY ETF Strategist Matt Camuso said the newly launched ETF is an expansion of the firm’s offerings at a time when investors are being forced to reconsider how they approach cash and short-duration investments.
“The current low rate environment is compelling clients to think more strategically as it relates to their allocation to cash,” he said.
BNY Mellon’s launch comes a few weeks after DriveWealth debuted two actively managed current income ETFs of its own: the DriveWealth Steady Saver ETF (STBL) and the DriveWealth Power Saver ETF (EERN).