Launched on April 9, 2020, the BNY Mellon US Mid Cap Core Equity ETF (BKMC) is a passively managed exchange traded fund designed to provide a broad exposure to the Mid Cap Blend segment of the US equity market.
The fund is sponsored by Bny Mellon. It has amassed assets over $649.69 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, with market capitalization in the range of $2 billion and $10 billion, offer investors many things that small and large companies don't, including less risk and higher growth opportunities. These types of companies, then, have a good balance of stability and growth potential.
Typically holding a combination of both growth and value stocks, blend ETFs also demonstrate qualities seen in value and growth investments.
Costs
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
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 1.38%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Industrials sector -- about 25.3% of the portfolio. Financials and Information Technology round out the top three.
Looking at individual holdings, Technipfmc Plc (FTI) accounts for about 0.78% of total assets, followed by Casey's General Stores Inc (CASY) and Dreyfus Institutional Preferred Government Money M
The top 10 holdings account for about 6.59% 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 has gained about 11.17% so far this year and it's up approximately 21.66% in the last one year (as of 06/12/2026). In the past 52-week period, it has traded between $98.78 and $121.37.
The ETF has a beta of 1.01 and standard deviation of 17.14% for the trailing three-year period. With about 403 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 Index Fund ETF Shares (VO) and the iShares Core S&P Mid-Cap ETF (IJH) track a similar index. While Vanguard Mid-Cap Index Fund ETF Shares has $103.30 billion in assets, iShares Core S&P Mid-Cap ETF has $121.06 billion. VO has an expense ratio of 0.03% 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
This article originally published on Zacks Investment Research (zacks.com).