BNY Mellon US Mid Cap Core Equity ETF (BKMC)

BNY Mellon US Mid Cap Core Equity ETF (MDD)

Profile:

MDD is a passively managed ETF that tracks the S&P MidCap 400 Index. It aims to provide broad exposure to the US mid-cap equity market, primarily focusing on companies with market capitalizations between $2 billion and $10 billion. The ETF invests in a diversified portfolio of approximately 400 mid-cap stocks across various sectors.

Objective:

The primary objective of MDD is to replicate the performance of the S&P MidCap 400 Index as closely as possible. This allows investors to gain exposure to the growth potential of mid-sized companies in the US economy.

Issuer:

MDD is issued by BNY Mellon Asset Management, a leading global investment management firm with over $2 trillion in assets under management. BNY Mellon has a strong reputation for its investment expertise and experience.

Market Share:

MDD has a market share of approximately 1.5% within the US mid-cap equity ETF category.

Total Net Assets:

As of November 7, 2023, MDD has total net assets of approximately $4.5 billion.

Moat:

MDD's competitive advantages include:

• Low expense ratio: MDD has an expense ratio of 0.04%, making it one of the most cost-effective mid-cap equity ETFs available.
• Experienced management team: The ETF is managed by a team of experienced portfolio managers with a proven track record of success.
• Tax efficiency: MDD is a tax-efficient ETF, meaning it distributes minimal capital gains to shareholders.

Financial Performance:

MDD has historically outperformed the S&P MidCap 400 Index. Over the past five years, the ETF has generated an annualized return of 12.3%, compared to the benchmark's 11.5% return.

Growth Trajectory:

The US mid-cap market is expected to continue growing in the coming years, driven by factors such as economic expansion and increasing demand for mid-cap stocks from institutional investors.

Liquidity:

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

Market Dynamics:

The US mid-cap market is influenced by various factors, including economic growth, interest rates, and investor sentiment. The ETF's performance can be affected by these factors.

Competitors:

MDD's main competitors include:

• iShares Core S&P Mid-Cap ETF (IJH)
• Vanguard Mid-Cap ETF (VO)
• SPDR S&P MidCap 400 ETF (MDY)

Expense Ratio:

MDD has an expense ratio of 0.04%.

Investment Approach and Strategy:

MDD employs a passive investment strategy, tracking the S&P MidCap 400 Index. The ETF invests in a representative sample of stocks included in the index, with weights proportional to their market capitalization.

Key Points:

• Low expense ratio
• Experienced management team
• Tax efficiency
• Strong historical performance
• High liquidity

Risks:

MDD is subject to various risks, including:

• Market risk: The ETF's value can fluctuate with the overall market conditions.
• Sector risk: The ETF's concentration in the mid-cap segment exposes it to sector-specific risks.
• Liquidity risk: While the ETF is generally liquid, there may be times when it becomes difficult to buy or sell shares quickly and at a desired price.

Who Should Consider Investing:

MDD is suitable for investors seeking:

• Exposure to the US mid-cap equity market
• Diversification across various sectors
• Low-cost investment option
• Long-term growth potential

Fundamental Rating Based on AI:

Based on an AI-based analysis considering financial health, market position, and future prospects, MDD receives a fundamental rating of 8 out of 10. The ETF benefits from its low expense ratio, experienced management team, and strong track record. However, investors should be aware of potential market and sector risks associated with the ETF.

Resources and Disclaimers:

Information for this analysis was gathered from the following sources:

• BNY Mellon Asset Management website
• Yahoo Finance
• ETF.com

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