BNY Converts Time-Tested Mutual Fund Into Income ETF

Core Insights - BNY Investments launched the BNY Mellon Enhanced Dividend and Income ETF (BEDY) on December 8, 2025, converting it from a mutual fund to an ETF, aiming to provide total return through capital appreciation and income [1][6] Group 1: Fund Structure and Strategy - BEDY's net assets are primarily allocated to dividend-generating stocks and other income sources, including equity-linked notes (ELNs) and real estate investment trusts (REITs) [2] - The fund employs a proprietary computer model combined with fundamental analysis for security selection, ranking securities based on intrinsic value and business fundamentals [3] - BEDY aims to mitigate risk through diversified exposure across various sectors, with up to 10% of net assets potentially invested in ELNs focused on distributable income [4] Group 2: Market Context and Historical Background - The launch of BEDY coincides with a growing demand for derivative income ETFs among advisors and investors seeking to enhance portfolio income [5] - The fund builds on the legacy of the BNY Mellon Income Stock Fund (BMIIX Class M), which has been in the market since October 2, 2000, leveraging decades of experience in derivative income [6]