BNY Mellon Launches 3 ESG ETFs

It’s the first ESG-tinted offering from BNY.

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Reviewed by: Dan Mika
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Edited by: Dan Mika

BNY Mellon made its first foray into ESG-tinted investing with a trio of launches Wednesday.

The three new offerings all debuted on the NYSE Arca:

 

TickerFundExpense Ratio
BKUSBNY Mellon Sustainable US Equity ETF0.60%
BKISBNY Mellon Sustainable International Equity ETF0.70%
BKESBNY Mellon Sustainable Global Emerging Markets ETF0.75%

 

All of the funds are actively managed and select equities in their respective categories based on research from Newton Investment Management, a BNY Mellon subsidiary.

Newton has broad discretion in how it defines a sustainable company; the funds’ prospectuses don’t include screens for specific industries that generally are cut from ESG funds. Instead, the portfolio managers are given free rein to select companies deemed to be taking steps to generate returns from environmental and social sustainability goals, including companies transitioning from nonsustainable models.

Newton’s managers also intend to monitor companies for ongoing ESG compliance, and reserve the right to vote the shares it manages to encourage positive business practices across its holdings.

BNY Mellon now has 13 ETFs on the U.S. market, with more than $1.15 billion in combined assets under management as of Wednesday morning.

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Dan Mika is a reporter for etf.com. He has previously covered business for the Ames Tribune and Cedar Rapids Gazette in Iowa, and BizWest Media in Fort Collins, Colorado. Dan holds a bachelor's degree in journalism from Truman State University.