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Should BNY Mellon US Large Cap Core Equity ETF (BKLC) Be on Your Investing Radar?

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Looking for broad exposure to the Large Cap Blend segment of the US equity market? You should consider the BNY Mellon US Large Cap Core Equity ETF (BKLC - 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 $430.26 million, making it one of the average sized ETFs attempting to match the Large Cap Blend segment of the US equity market.

Why Large Cap Blend

Large cap companies usually have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.

Typically holding a combination of both growth and value stocks, blend ETFs also demonstrate qualities seen in value and growth investments.


When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.

Annual operating expenses for this ETF are 0%, making it the least expensive products in the space.

It has a 12-month trailing dividend yield of 1.48%.

Sector Exposure and Top Holdings

While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.

This ETF has heaviest allocation to the Information Technology sector--about 32.20% of the portfolio. Healthcare and Financials round out the top three.

Looking at individual holdings, Apple Inc (AAPL - Free Report) accounts for about 8.16% of total assets, followed by Microsoft Corp (MSFT - Free Report) and Inc (AMZN - Free Report) .

The top 10 holdings account for about 32.97% of total assets under management.

Performance and Risk

BKLC seeks to match the performance of the MORNINGSTAR U.S. LARGE CAP INDEX before fees and expenses. The Morningstar US Large Cap Index is a float-adjusted market capitalization weighted index designed to measure the performance of U.S. large-capitalization stocks.

The ETF has lost about -22.23% so far this year and is down about -12.82% in the last one year (as of 07/01/2022). In the past 52-week period, it has traded between $67.72 and $90.50.

The ETF has a beta of 1.05 and standard deviation of 19.48% for the trailing three-year period. With about 231 holdings, it effectively diversifies company-specific risk.


BNY Mellon US Large 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, BKLC is a sufficient option for those seeking exposure to the Style Box - Large Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.

The iShares Core S&P 500 ETF (IVV - Free Report) and the SPDR S&P 500 ETF (SPY - Free Report) track a similar index. While iShares Core S&P 500 ETF has $278.14 billion in assets, SPDR S&P 500 ETF has $346.55 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.


Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds 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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