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Should BNY Mellon US Mid Cap Core Equity ETF (BKMC) Be on Your Investing Radar?
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The BNY Mellon US Mid Cap Core Equity ETF (BKMC - Free Report) was launched on 04/09/2020, and is a passively managed exchange traded fund designed to offer broad exposure to the Mid Cap Blend segment of the US equity market.
The fund is sponsored by Bny Mellon. It has amassed assets over $432.60 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
With market capitalization between $2 billion and $10 billion, mid cap companies usually contain higher growth prospects than large cap companies, and are considered less risky than their small cap counterparts. Thus, companies that fall under this category provide a stable and growth-heavy investment.
Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics.
Costs
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
Annual operating expenses for this ETF are 0.04%, making it the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.60%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Industrials sector--about 16.40% of the portfolio. Information Technology and Financials round out the top three.
Looking at individual holdings, Dreyfus Institutional Pre accounts for about 0.76% of total assets, followed by Biogen Inc (BIIB - Free Report) and Microchip Technology Inc (MCHP - Free Report) .
The top 10 holdings account for about 5.45% 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 gained about 2.94% so far this year and is down about -7.64% in the last one year (as of 04/17/2023). In the past 52-week period, it has traded between $71.55 and $90.17.
The ETF has a beta of 0.98 and standard deviation of 21.13% for the trailing three-year period. With about 511 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 reasonable 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 $51.55 billion in assets, iShares Core S&P Mid-Cap ETF has $66.09 billion. VO has an expense ratio of 0.04% and IJH charges 0.05%.
Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are 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?
The BNY Mellon US Mid Cap Core Equity ETF (BKMC - Free Report) was launched on 04/09/2020, and is a passively managed exchange traded fund designed to offer broad exposure to the Mid Cap Blend segment of the US equity market.
The fund is sponsored by Bny Mellon. It has amassed assets over $432.60 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
With market capitalization between $2 billion and $10 billion, mid cap companies usually contain higher growth prospects than large cap companies, and are considered less risky than their small cap counterparts. Thus, companies that fall under this category provide a stable and growth-heavy investment.
Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics.
Costs
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
Annual operating expenses for this ETF are 0.04%, making it the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.60%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Industrials sector--about 16.40% of the portfolio. Information Technology and Financials round out the top three.
Looking at individual holdings, Dreyfus Institutional Pre accounts for about 0.76% of total assets, followed by Biogen Inc (BIIB - Free Report) and Microchip Technology Inc (MCHP - Free Report) .
The top 10 holdings account for about 5.45% 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 gained about 2.94% so far this year and is down about -7.64% in the last one year (as of 04/17/2023). In the past 52-week period, it has traded between $71.55 and $90.17.
The ETF has a beta of 0.98 and standard deviation of 21.13% for the trailing three-year period. With about 511 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 reasonable 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 $51.55 billion in assets, iShares Core S&P Mid-Cap ETF has $66.09 billion. VO has an expense ratio of 0.04% and IJH charges 0.05%.
Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are 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.