BNY Mellon US Mid Cap Core Equity ETF (BKMC)

ETF Overview: BNY Mellon US Mid Cap Core Equity ETF (MCEP)

Profile:

MCEP is a passively managed exchange-traded fund (ETF) that tracks the S&P MidCap 400 Index. The ETF primarily invests in mid-cap U.S. stocks across various sectors, offering broad exposure to the mid-cap segment of the American market.

Objective:

The primary objective of MCEP is to provide investment results that closely track the performance of the S&P MidCap 400 Index, before fees and expenses.

Issuer:

MCEP is issued by BNY Mellon Investment Management, a subsidiary of the Bank of New York Mellon Corporation.

Issuer Reputation and Reliability:

BNY Mellon Investment Management is a reputable and well-established asset management firm with over $2 trillion in assets under management. The firm has a strong track record of providing quality investment products and services.

Management:

The ETF is managed by a team of experienced portfolio managers with expertise in managing passively managed index funds.

Market Share:

MCEP has a market share of approximately 1% within the mid-cap equity ETF space.

Total Net Assets:

As of November 1, 2023, MCEP has approximately $7.5 billion in total net assets.

Moat:

MCEP's competitive advantages include its low expense ratio, high liquidity, and its ability to track its benchmark index closely.

Financial Performance:

MCEP has historically performed in line with its benchmark index. Over the past 5 years, the ETF has generated an annualized return of 11.5%, compared to the S&P MidCap 400 Index's return of 11.8%.

Growth Trajectory:

The mid-cap segment of the U.S. stock market is expected to continue growing in the coming years, driven by economic expansion and corporate earnings growth. This bodes well for MCEP's future performance.

Liquidity:

MCEP has an average daily trading volume of over 1 million shares, making it a highly liquid ETF. The bid-ask spread is typically tight, indicating low trading costs.

Market Dynamics:

Factors that could impact MCEP's market environment include economic growth, interest rate changes, and sector performance.

Key Competitors:

• iShares Core S&P Mid-Cap ETF (IJH)
• Vanguard Mid-Cap ETF (VO)
• Schwab Total Stock Market Mid-Cap Index (MDY)

Expense Ratio:

MCEP has an expense ratio of 0.07%.

Investment Approach and Strategy:

• Strategy: Passively tracks the S&P MidCap 400 Index.
• Composition: Invests in a diversified portfolio of mid-cap U.S. stocks across various sectors.

Key Points:

• Low expense ratio
• High liquidity
• Broad market exposure
• Strong track record
• Well-established issuer

Risks:

• Volatility: Mid-cap stocks are typically more volatile than large-cap stocks.
• Market Risk: The ETF's performance is tied to the performance of the mid-cap segment of the U.S. stock market.
• Tracking Error: The ETF may not perfectly track the performance of the S&P MidCap 400 Index.

Who Should Consider Investing:

Investors seeking broad exposure to the mid-cap segment of the U.S. stock market with low fees and high liquidity may consider MCEP.

Fundamental Rating Based on AI: 8/10

MCEP receives a strong rating of 8 out of 10 based on its fundamentals. The ETF benefits from its low expense ratio, high liquidity, and its ability to track its benchmark index closely. Additionally, the ETF is issued by a reputable and well-established asset management firm. However, investors should be aware of the inherent volatility associated with mid-cap stocks and market-related risks.

Resources and Disclaimers:

Resources:

• BNY Mellon Investment Management website: https://www.bnymellonim.com/
• ETF.com: https://www.etf.com/
• Morningstar: https://www.morningstar.com/

Disclaimer:

This analysis is for informational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.