BNY Mellon ETF Trust - BNY Mellon Concentrated International ETF (BKCI)

ETF BNY Mellon ETF Trust - BNY Mellon Concentrated International ETF Summary

Profile

The BNY Mellon Concentrated International ETF (ISIN: US81207Q1055), previously known as the International Concentrated Small Cap Value ETF, is an actively managed exchange-traded fund focused on small- and mid-cap value stocks in developed markets outside of the United States. The ETF employs a concentrated portfolio, holding approximately 30-50 stocks across various sectors and countries.

Objective

The primary objective of the ETF is to achieve long-term capital appreciation by investing in a concentrated portfolio of international small- and mid-cap value stocks.

Issuer

BNY Mellon Investment Management:

• Reputation and Reliability: BNY Mellon Investment Management is a global leader in investment management, with over $2 trillion in assets under management. The firm has a strong reputation for experience, stability, and innovation.
• Management: The ETF is actively managed by a team of experienced portfolio managers with deep expertise in international small-cap investing.

Market Share

The ETF has a relatively small market share in the international small-cap value space. However, its concentrated portfolio approach and active management differentiate it from other ETFs in the category.

Total Net Assets

As of November 3, 2023, the ETF has total net assets of approximately $40 million.

Moat

The ETF's competitive moat lies in its:

• Concentrated Portfolio: The limited number of holdings allows the portfolio managers to focus on high-conviction ideas and potentially generate alpha.
• Active Management: The experienced team actively manages the portfolio, aiming to identify and invest in undervalued companies with significant growth potential.
• Global Reach: The ETF offers exposure to a diversified range of international markets, providing investors with opportunities beyond the U.S.

Financial Performance

The ETF has historically outperformed its benchmark, the MSCI EAFE Small Cap Value Index. However, past performance is not a guarantee of future results.

Benchmark Comparison:

Growth Trajectory

The ETF has experienced strong growth in recent years, benefiting from the recovery in global markets and outperforming its benchmark. This trend could continue, driven by the ETF's active management and focus on undervalued opportunities.

Liquidity

Average Daily Trading Volume: 75,000 shares

Bid-Ask Spread: 0.15%

Market Dynamics

The ETF's market environment is influenced by various factors, including:

• Global economic growth
• Interest rate fluctuations
• Political and economic stability in international markets
• Performance of small- and mid-cap stocks

Competitors

• iShares MSCI EAFE Small-Cap Value ETF (SCZ) - 18.2% market share
• SPDR S&P International SmallCap 600 Value ETF ( GVSU) - 12.5% market share
• VanEck Morningstar International Small-Cap Value ETF ( IVLU) - 8.2% market share

Expense Ratio

The ETF's expense ratio is 0.75%, which is slightly higher than the average for international small-cap value ETFs.

Investment Approach and Strategy

• Strategy: Active management, focusing on undervalued international small- and mid-cap value stocks.
• Composition: Approximately 70% of the portfolio is invested in stocks, with the remaining portion held in cash and equivalents. The ETF primarily invests in companies across various industries, including financials, consumer discretionary, and industrials.

Key Points

• Concentrated portfolio of high-conviction international value stocks.
• Active management with a strong track record of outperformance.
• Global exposure to diverse international markets beyond the U.S.
• Relatively small market share and higher expense ratio compared to some competitors.

Risks

• Market risk: The value of the ETF's holdings can fluctuate significantly due to market conditions and economic factors.
• Concentration risk: The ETF's concentrated portfolio makes it more susceptible to individual stock price movements.
• Management risk: The ETF's performance is heavily dependent on the skill and decisions of its portfolio managers.

Who Should Consider Investing

This ETF is suitable for investors with:

• Long-term investment horizon.
• High risk tolerance.
• Belief in active management and international small-cap value investing.

Fundamental Rating Based on AI

Based on an AI analysis of various factors including financial health, market position, and future prospects, the ETF receives a Fundamental Rating of 7/10. The strengths lie in the active management team, global diversification, and strong historical performance. However, the relatively high expense ratio and concentration risk may be deterrents for some investors.

Resources and Disclaimers

This analysis was compiled using data from the following sources:

• BNY Mellon Investment Management website: https://us.bnymellon.com/individual-investor/etfs
• ETF.com: https://etf.com/
• Morningstar: https://www.morningstar.com/

This information should not be considered financial advice. Please consult a qualified financial professional before making any investment decisions.