Should BNY Mellon US Mid Cap Core Equity ETF (BKMC) Be on Your Investing Radar?

Core Viewpoint - The BNY Mellon US Mid Cap Core Equity ETF (BKMC) is a passively managed ETF launched on April 9, 2020, with assets exceeding $565.02 million, targeting the Mid Cap Blend segment of the US equity market [1][2]. Group 1: Mid Cap Blend Characteristics - Mid cap companies, with market capitalizations between $2 billion and $10 billion, are noted for higher growth prospects and lower volatility compared to large and small cap companies [2]. - Blend ETFs typically hold a mix of growth and value stocks, providing a balanced investment approach [2]. Group 2: Cost Structure - The annual operating expenses for BKMC are 0.04%, making it one of the least expensive ETFs in its category [3]. - The ETF has a 12-month trailing dividend yield of 1.46% [3]. Group 3: Sector Exposure and Holdings - The ETF has a significant allocation to the Industrials sector, comprising approximately 22.6% of the portfolio, followed by Financials and Consumer Discretionary [4]. - Sofi Technologies Inc (SOFI) represents about 0.61% of total assets, with the top 10 holdings accounting for around 5.44% of total assets under management [5]. Group 4: Performance Metrics - BKMC aims to match the performance of the SOLACTIVE GBS UNITED STATES 400 INDEX, which tracks the largest 400 mid cap companies in the US [6]. - The ETF has gained approximately 4.51% year-to-date and 9.29% over the past year, with a trading range between $83.55 and $110.43 in the last 52 weeks [6]. Group 5: Risk Assessment - The ETF has a beta of 1.04 and a standard deviation of 18.87% over the trailing three-year period, indicating effective diversification of company-specific risk with about 403 holdings [7]. Group 6: Alternatives - BKMC carries a Zacks ETF Rank of 3 (Hold), suggesting it is a reasonable option for investors seeking exposure to the Mid Cap Blend market segment [8]. - Other comparable ETFs include the Vanguard Mid-Cap ETF (VO) and the iShares Core S&P Mid-Cap ETF (IJH), with assets of $85.74 billion and $98.36 billion respectively, and expense ratios of 0.04% and 0.05% [9]. Group 7: Investment Appeal - Passively managed ETFs like BKMC are favored by both institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency [10].