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Should BNY Mellon US Mid Cap Core Equity ETF (BKMC) Be on Your Investing Radar?
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If you're interested in broad exposure to the Mid Cap Blend segment of the US equity market, look no further than the BNY Mellon US Mid Cap Core Equity ETF (BKMC - Free Report) , a passively managed exchange traded fund launched on 04/09/2020.
The fund is sponsored by Bny Mellon. It has amassed assets over $473.86 million, making it one of the average sized ETFs attempting to match the Mid Cap Blend segment of the US equity market.
Why Mid Cap Blend
Mid cap companies, with market capitalization in the range of $2 billion and $10 billion, offer investors many things that small and large companies don't, including less risk and higher growth opportunities. Thus they have a nice balance of growth potential and stability.
Blend ETFs are aptly named, since they tend to hold a mix of growth and value stocks, as well as show characteristics of both kinds of equities.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.04%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.40%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Industrials sector--about 20.20% of the portfolio. Consumer Discretionary and Information Technology round out the top three.
Looking at individual holdings, Deckers Outdoor Corp (DECK - Free Report) accounts for about 0.60% of total assets, followed by Reliance Steel & Aluminum (RS - Free Report) and Entegris Inc (ENTG - Free Report) .
The top 10 holdings account for about 5.29% of total assets under management.
Performance and Risk
BKMC seeks to match the performance of the MORNINGSTAR U.S. MID CAP INDEX before fees and expenses. The Morningstar US Mid Cap Index is a float-adjusted market capitalization weighted index designed to measure the performance of U.S. medium-capitalization stocks.
The ETF has lost about -1.54% so far this year and it's up approximately 11.68% in the last one year (as of 01/11/2024). In the past 52-week period, it has traded between $75.04 and $91.77.
The ETF has a beta of 1.02 and standard deviation of 19.11% for the trailing three-year period. With about 407 holdings, it effectively diversifies company-specific risk.
Alternatives
BNY Mellon US Mid Cap Core Equity ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, BKMC is a good option for those seeking exposure to the Style Box - Mid Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.
The Vanguard Mid-Cap ETF (VO - Free Report) and the iShares Core S&P Mid-Cap ETF (IJH - Free Report) track a similar index. While Vanguard Mid-Cap ETF has $58.86 billion in assets, iShares Core S&P Mid-Cap ETF has $75.36 billion. VO has an expense ratio of 0.04% and IJH charges 0.05%.
Bottom-Line
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Should BNY Mellon US Mid Cap Core Equity ETF (BKMC) Be on Your Investing Radar?
If you're interested in broad exposure to the Mid Cap Blend segment of the US equity market, look no further than the BNY Mellon US Mid Cap Core Equity ETF (BKMC - Free Report) , a passively managed exchange traded fund launched on 04/09/2020.
The fund is sponsored by Bny Mellon. It has amassed assets over $473.86 million, making it one of the average sized ETFs attempting to match the Mid Cap Blend segment of the US equity market.
Why Mid Cap Blend
Mid cap companies, with market capitalization in the range of $2 billion and $10 billion, offer investors many things that small and large companies don't, including less risk and higher growth opportunities. Thus they have a nice balance of growth potential and stability.
Blend ETFs are aptly named, since they tend to hold a mix of growth and value stocks, as well as show characteristics of both kinds of equities.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.04%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.40%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Industrials sector--about 20.20% of the portfolio. Consumer Discretionary and Information Technology round out the top three.
Looking at individual holdings, Deckers Outdoor Corp (DECK - Free Report) accounts for about 0.60% of total assets, followed by Reliance Steel & Aluminum (RS - Free Report) and Entegris Inc (ENTG - Free Report) .
The top 10 holdings account for about 5.29% of total assets under management.
Performance and Risk
BKMC seeks to match the performance of the MORNINGSTAR U.S. MID CAP INDEX before fees and expenses. The Morningstar US Mid Cap Index is a float-adjusted market capitalization weighted index designed to measure the performance of U.S. medium-capitalization stocks.
The ETF has lost about -1.54% so far this year and it's up approximately 11.68% in the last one year (as of 01/11/2024). In the past 52-week period, it has traded between $75.04 and $91.77.
The ETF has a beta of 1.02 and standard deviation of 19.11% for the trailing three-year period. With about 407 holdings, it effectively diversifies company-specific risk.
Alternatives
BNY Mellon US Mid Cap Core Equity ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, BKMC is a good option for those seeking exposure to the Style Box - Mid Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.
The Vanguard Mid-Cap ETF (VO - Free Report) and the iShares Core S&P Mid-Cap ETF (IJH - Free Report) track a similar index. While Vanguard Mid-Cap ETF has $58.86 billion in assets, iShares Core S&P Mid-Cap ETF has $75.36 billion. VO has an expense ratio of 0.04% and IJH charges 0.05%.
Bottom-Line
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.