BNY Mellon ETF Trust - BNY Mellon Emerging Markets Equity ETF (BKEM)

ETF BNY Mellon Emerging Markets Equity ETF (BKEM) Summary

Profile:

The BNY Mellon Emerging Markets Equity ETF (BKEM) is a passively managed exchange-traded fund that seeks to track the performance of the MSCI Emerging Markets Index. It invests primarily in large- and mid-cap stocks across a range of emerging market countries, with a focus on Brazil, China, India, Taiwan, and South Korea.

Objective:

BKEM aims to provide investors with long-term capital appreciation by tracking the performance of the MSCI Emerging Markets Index. It offers exposure to a diversified basket of emerging market equities, aiming to capture the potential growth opportunities in these developing economies.

Issuer:

The ETF is issued by BNY Mellon Investment Management, a global investment management firm with over $2.3 trillion in assets under management as of December 31, 2023. The firm has a long history and a solid reputation in the industry.

Market Share and Total Net Assets:

BKEM has a market share of approximately 0.5% in the emerging markets equity ETF category. As of November 2023, the total net assets under management for the ETF are about $1.5 billion.

Moat:

BKEM's competitive advantages include:

• Low expense ratio: The ETF has a relatively low expense ratio of 0.15%, making it a cost-effective option for investors seeking exposure to emerging markets.
• Diversification: The ETF provides exposure to a wide range of emerging market countries and sectors, reducing the risk associated with concentrated investments.
• Experienced management: BNY Mellon Investment Management has a strong track record of managing emerging market portfolios.

Financial Performance:

BKEM has historically outperformed its benchmark, the MSCI Emerging Markets Index, over the past 3 and 5 years. However, it is important to note that past performance is not indicative of future results.

Liquidity:

BKEM has an average daily trading volume of approximately 100,000 shares, indicating good liquidity. The bid-ask spread is also relatively tight, further enhancing its liquidity.

Market Dynamics:

The performance of BKEM is influenced by various factors, including:

• Economic growth in emerging markets: Strong economic growth in emerging economies can lead to higher returns for the ETF.
• Global economic conditions: Global economic downturns can negatively impact emerging markets, leading to lower returns for the ETF.
• Political instability in emerging markets: Political instability can create uncertainty and volatility in emerging markets, impacting the ETF's performance.

Competitors:

Key competitors of BKEM include:

• iShares Core MSCI Emerging Markets IMI ETF (IEMG) - Market share: 15%
• Vanguard FTSE Emerging Markets ETF (VWO) - Market share: 10%
• SPDR Portfolio Emerging Markets ETF (SPEM) - Market share: 5%

Expense Ratio:

The expense ratio for BKEM is 0.15%.

Investment Approach and Strategy:

BKEM is a passively managed ETF that tracks the MSCI Emerging Markets Index. It invests in a representative sample of the stocks included in the index, with the weights of each stock reflecting their market capitalization.

Key Points:

• Provides diversified exposure to emerging market equities.
• Low expense ratio.
• Strong historical performance.
• Good liquidity.

Risks:

The main risks associated with BKEM include:

• Emerging market volatility: Emerging markets tend to be more volatile than developed markets, leading to potential fluctuations in the ETF's value.
• Currency risk: The ETF is exposed to currency risk, as its investments are denominated in various emerging market currencies.
• Political and economic risk: Political and economic instability in emerging markets can negatively impact the ETF's performance.

Who Should Consider Investing:

BKEM is suitable for investors seeking:

• Long-term capital appreciation.
• Diversification in their portfolio.
• Exposure to emerging market equities.

Fundamental Rating Based on AI:

Based on an AI-based analysis of the factors mentioned above, BKEM receives a 7 out of 10 rating. The ETF's low expense ratio, diversified portfolio, strong historical performance, and good liquidity contribute to its positive rating. However, investors should be aware of the risks associated with emerging markets before investing.

Resources and Disclaimers:

• BNY Mellon Emerging Markets Equity ETF website: https://www.bnymellon.com/us/individual-investors/etfs/etfs/bkem
• Morningstar: https://www.morningstar.com/etfs/arcx/bkem/quote
• Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please consult a financial professional before making any investment decisions.