If you're interested in broad exposure to the Mid Cap Blend segment of the US equity market, look no further than 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 $543.43 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

Mid cap companies have market capitalization between $2 billion and $10 billion. They usually have higher growth prospects than large cap companies and are less volatile than small cap companies. 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

Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain 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 1.49%.

Sector Exposure and Top Holdings

Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.

This ETF has heaviest allocation to the Industrials sector--about 19.70% of the portfolio. Financials and Consumer Discretionary round out the top three.

Looking at individual holdings, Dreyfus Institutional Pre accounts for about 0.62% of total assets, followed by Expand Energy Corp (EXE) and Packaging Corp Of America (PKG).

The top 10 holdings account for about 5.53% 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 3.67% so far this year and was up about 19.81% in the last one year (as of 01/21/2025). In the past 52-week period, it has traded between $89.34 and $110.43.

The ETF has a beta of 1.05 and standard deviation of 19.05% 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 reasonable 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 $75.21 billion in assets, iShares Core S&P Mid-Cap ETF has $98.55 billion. VO has an expense ratio of 0.04% and IJH charges 0.05%.

Bottom-Line

Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are 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

Packaging Corporation of America (PKG) : Free Stock Analysis Report

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

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

Expand Energy Corporation (EXE) : Free Stock Analysis Report

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