Looking for broad exposure to the Mid Cap Blend segment of the US equity market? You should consider the BNY Mellon US Mid Cap Core Equity ETF (BKMC), a passively managed exchange traded fund launched on 04/09/2020.

The fund is sponsored by Bny Mellon. It has amassed assets over $530.22 million, making it one of the average sized ETFs attempting to match the Mid Cap Blend segment of the US equity market.

Why Mid Cap Blend

Compared to large and small cap companies, mid cap businesses tend to have higher growth prospects and are less volatile, respectively, with market capitalization between $2 billion and $10 billion. Thus, companies that fall under this category provide a stable and growth-heavy investment.

Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics.

Costs

Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.

Annual operating expenses for this ETF are 0.04%, making it one of the least expensive products in the space.

It has a 12-month trailing dividend yield of 1.31%.

Sector Exposure and Top Holdings

While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.

This ETF has heaviest allocation to the Industrials sector--about 25.90% of the portfolio. Consumer Discretionary and Financials round out the top three.

Looking at individual holdings, Texas Pacific Land Corp (TPL) accounts for about 0.59% of total assets, followed by Emcor Group Inc (EME) and Nrg Energy Inc (NRG).

The top 10 holdings account for about 5.23% of total assets under management.

Performance and Risk

BKMC seeks to match the performance of the SOLACTIVE GBS UNITED STATES 400 INDEX before fees and expenses. The Solactive GBS United States 400 Index intends to track the performance of the largest 400 mid cap companies from the US stock market and is based on the Solactive Global Benchmark Series.

The ETF return is roughly 16.37% so far this year and it's up approximately 29.16% in the last one year (as of 11/18/2024). In the past 52-week period, it has traded between $81.72 and $108.38.

The ETF has a beta of 1.02 and standard deviation of 19.28% for the trailing three-year period. With about 409 holdings, it effectively diversifies company-specific risk.

Alternatives

BNY Mellon US Mid Cap Core Equity ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, BKMC is a sufficient option for those seeking exposure to the Style Box - Mid Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.

The Vanguard Mid-Cap ETF (VO) and the iShares Core S&P Mid-Cap ETF (IJH) track a similar index. While Vanguard Mid-Cap ETF has $72.88 billion in assets, iShares Core S&P Mid-Cap ETF has $95.47 billion. VO has an expense ratio of 0.04% and IJH charges 0.05%.

Bottom-Line

Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.

To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.

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BNY Mellon US Mid Cap Core Equity ETF (BKMC): ETF Research Reports

NRG Energy, Inc. (NRG) : Free Stock Analysis Report

EMCOR Group, Inc. (EME) : Free Stock Analysis Report

iShares Core S&P Mid-Cap ETF (IJH): ETF Research Reports

Vanguard Mid-Cap ETF (VO): ETF Research Reports

Texas Pacific Land Corporation (TPL) : Free Stock Analysis Report

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