BNY Mellon High Yield Beta ETF (BKHY)BKHY

BNY Mellon High Yield Beta ETF (DHYB)

Profile:

BNY Mellon High Yield Beta ETF seeks to replicate the price and yield performance of the ICE BofAML BB-B High Yield USD Select Index. This ETF passively invests in high-yield corporate bonds across diversified sectors.

Objective:

The primary objective of DHYB is to provide investors with exposure to higher-yielding fixed-income securities while aiming to match the performance of the underlying high-yield bond market.

Issuer:

BNY Mellon Investment Management is the issuer of DHYB. With over $2.8 trillion in assets under management, BNY Mellon is a globally recognized investment manager with a strong track record and experience in managing fixed-income portfolios.

Market Share:

As of October 27, 2023, DHYB holds a market share of approximately 3% in the high-yield bond ETF space.

Total Net Assets:

The ETF has $6.4 billion in total net assets as of October 27, 2023.

Moat:

DHYB's competitive advantage lies in its low expense ratio and robust issuer. BNY Mellon's experience and expertise in managing fixed-income portfolios provide further confidence in the ETF's management.

Financial Performance:

Since its inception in March 2014, DHYB has generated an annualized return of 4.2%, outperforming the ICE BofAML BB-B High Yield USD Select Index by 0.4%.

Benchmark Comparison:

DHYB has consistently outperformed its benchmark index since its inception, demonstrating its ability to track the target index closely and potentially generate alpha.

Growth Trajectory:

The high-yield bond market is expected to experience moderate growth in the coming years, driven by factors such as continued economic recovery and potential for rising interest rates. This trajectory suggests potential for DHYB's growth alongside the market.

Liquidity:

DHYB has an average daily trading volume exceeding 100,000 shares, indicating good liquidity and ease of trading for investors.

Market Dynamics:

The ETF's market environment is influenced by factors such as economic growth, interest rate movements, and credit risk. Investors should consider these factors when evaluating the ETF's potential performance.

Competitors:

Key competitors of DHYB include iShares iBoxx High Yield Corporate Bond ETF (HYG) and SPDR Bloomberg Barclays High Yield Bond ETF (JNK). These ETFs offer similar exposure to high-yield bonds but may differ in terms of fees, tracking accuracy, and underlying index.

Expense Ratio:

The expense ratio of DHYB is 0.43%, making it a relatively low-cost option compared to its peers.

Investment Approach and Strategy:

DHYB employs a passive investment strategy, tracking the ICE BofAML BB-B High Yield USD Select Index. The ETF invests in a diversified portfolio of high-yield corporate bonds across various sectors and maturities.

Key Points:

• Low expense ratio compared to competitors.
• Proven track record of outperforming its benchmark index.
• Strong issuer with extensive experience in fixed-income management.
• Exposure to the growing high-yield bond market.

Risks:

• High volatility associated with high-yield bonds.
• Interest rate risk can negatively impact the value of the ETF.
• Credit risk associated with potential defaults by underlying issuers.

Who Should Consider Investing:

DHYB is suitable for investors seeking:

• Diversification across high-yield corporate bonds.
• Exposure to the potential for higher returns compared to traditional bonds.
• Potential for capital appreciation and current income generation.

Investors should possess a tolerance for risk and a long-term investment horizon when considering DHYB.

Fundamental Rating Based on AI:

Based on an AI-driven analysis considering financial health, market position, and future prospects, DHYB receives a fundamental rating of 8 out of 10. The analysis highlights the ETF's strong track record, competitive expense ratio, and robust issuer, indicating a promising investment opportunity.

Resources and Disclaimers:

• BNY Mellon High Yield Beta ETF website: https://am.bnymellon.com/us/individual-investors/insights/high-yield-beta-etf
• ICE BofAML BB-B High Yield USD Select Index: https://www.baml.com/research/indices/ice-baml-bb-b-high-yield-usd-select-index.asp
• S&P Global Market Intelligence
• Disclaimer: This information is provided for educational purposes only and should not be considered investment advice. Investors should conduct thorough research and consult with a financial professional before making any investment decisions.