Explore Sectors Beyond Tech With Active Value ETFs

Core Insights - The BNY Investments team suggests that value equities may be more resilient during inflationary periods compared to growth stocks, presenting potential investment opportunities in the current market environment [2] - Despite a preference for tech-focused growth strategies among investors, sectors like financials and energy are highlighted as promising for value-oriented strategies [3] Group 1: Value Equities - Value companies historically perform better during inflation, making them attractive in the current economic climate [2] - The financial sector, particularly large banks such as Bank of America and JP Morgan, is seen as offering opportunities due to diversified business lines and supportive factors like deregulation and buybacks [4] - The energy sector is noted for its favorable supply-demand dynamics, with companies like Exxon, Phillips 66, and Marathon Petroleum being highlighted [4] Group 2: BKDV ETF Strategy - The BNY Mellon Dynamic Value ETF (BKDV) employs a bottom-up approach to value investing, focusing on intrinsic value, sound business fundamentals, and positive business momentum [5] - As of October 31, 2025, the financial sector constitutes over 25% of BKDV's portfolio, while the fund remains diversified across other sectors, including energy [6] - This diversified approach positions BKDV well to navigate inflationary pressures and capitalize on favorable market valuations [6]