BNY Mellon ETF Charts New Course

December 08, 2021

Today, BNY Mellon launched its first actively managed equity fund. The BNY Mellon Concentrated International ETF (BKCI) targets non-U.S. stocks from developed markets in its quest for total return over the long term.

The new fund comes with an expense ratio of 0.80% and lists on the NYSE Arca.

BKCI has very few restrictions on how it invests, with its prospectus allowing for significant bets of greater than 20% of the portfolio on specific sectors, regions or countries.

The prospectus notes that the fund is expected to have investments in the information technology, health care and industrial sectors as well as Western Europe—with France specifically called out—and Japan. It can also invest up to 20% of its portfolio in emerging markets.

The document cites Walter Scott & Partners as BKCI’s subadvisor, with the firm selecting individual securities via a bottom-up approach that relies on intensive fundamental research.

The methodology emphasizes the use of individual security selection and the importance of a company’s financials and management. The prospectus says that, ultimately, the portfolio will include 25-30 securities.

BKCI is a true departure for BNY Mellon, which has launched several equity and fixed income ETFs, all of which have rock-bottom expense ratios—two even have an expense ratios of zero—and usually track broad, plain vanilla indexes.

Contact Heather Bell at [email protected]

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