Launched on April 9, 2020, the BNY Mellon US Large Cap Core Equity ETF (BKLC) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Blend segment of the US equity market.
The fund is sponsored by Bny Mellon. It has amassed assets over $6.87 billion, making it one of the largest ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Companies that fall in the large cap category tend to have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.
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%, making it the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.06%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector -- about 37.5% of the portfolio. Financials and Healthcare round out the top three.
Looking at individual holdings, Nvidia Corp (NVDA) accounts for about 7.91% of total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT).
The top 10 holdings account for about 38.34% of total assets under management.
Performance and Risk
BKLC seeks to match the performance of the SOLACTIVE GBS UNITED STATES 500 INDEX TR before fees and expenses. The Solactive GBS United States 500 Index TR intends to track the performance of the largest 500 companies from the US stock market.
The ETF has added about 14.25% so far this year and was up about 16.2% in the last one year (as of 10/22/2026). In the past 52-week period, it has traded between $40.40 and $49.86.
The ETF has a beta of 1.02 and standard deviation of 14.81% for the trailing three-year period. With about 507 holdings, it effectively diversifies company-specific risk.
Alternatives
BNY Mellon US Large 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, BKLC is a sufficient option for those seeking exposure to the Style Box - Large Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Core S&P 500 ETF (IVV) and the Vanguard 500 Index Fund ETF Shares (VOO) track a similar index. While iShares Core S&P 500 ETF has $891.32 billion in assets, Vanguard 500 Index Fund ETF Shares has $1,046.44 billion. IVV has an expense ratio of 0.03% and VOO charges 0.03%.
Bottom-Line
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
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 Large Cap Core Equity ETF (BKLC): ETF Research Reports
This article originally published on Zacks Investment Research (zacks.com).