ETFdb Logo
  • ETF Database
  • Channels
    • Themes
      • Active ETF
      • Alternatives Channel
      • Artificial Intelligence
      • China Insights
      • Climate Insights
      • Core Strategies
      • Crypto
      • Disruptive Technology
      • Energy Infrastructure
      • ETF Building Blocks
      • ETF Education
      • ETF Investing
      • ETF Strategist
      • Faith-Based Investing
      • Financial Literacy
      • Fixed Income
      • Free Cash Flow
      • Innovative ETFs
      • Invest Beyond Cash
      • Leveraged & Inverse
      • Modern Alpha
      • Portfolio Strategies
      • Tax Efficient Income
    • Asset Class
      • Equity
        • U.S. Equity
        • Int'l Developed
        • Emerging Market Equities
      • Alternatives
        • Gold/Silver/Critical Materials
        • Crypytocurrency
        • Currency
        • Volatility
      • Fixed Income
        • Investment Grade Corporates
        • US Treasuries & TIPS
        • High Yield Corporates
        • Int'l Fixed Income
    • ETF Ecosystem
    • ETFs in Canada
    • Market Outlook
    • Crypto ETF Hub
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Database Categories
    • Indexes
    • Scenario Analysis
    • Watchlists
    • Head-To-Head ETF Comparison Tool
    • Mutual Fund To ETF Converter
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
  • Research
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Index Education
    • Index Insights
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Multimedia
    • ETF 360 Video Series
    • ETF of the Week Podcast
    • Gaining Perspective Podcast
    • ETF Prime Podcast
    • Video
  • Company
    • About VettaFi
    • Get VettaFi’ed
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. BNY Mellon Launches Ultra Short Bonds ETF, BKUI
News
Share

BNY Mellon Launches Ultra Short Bonds ETF, BKUI

Karrie GordonAug 11, 2021
2021-08-11

On Wednesday, BNY Mellon Investment Management announced the launch of their first active management ETF, the BNY Mellon Ultra Short Income ETF (BKUI), on the NYSE. The fund offers exposure to increased yield with less volatility than a short-term bond might potentially and offers the possibility of increased returns over money market funds.

“Given the current low rate environment, an ultra-short bond ETF seeks to address the growing demand for increased yield with less volatility than a short-term bond fund and potentially additional return over money market funds,” said John Tobin, Chief Investment Officer of Dreyfus Cash Investment Strategies, the fund’s sub-advisor. “The BNY Mellon Ultra Short Income ETF is a natural extension of our existing suite of liquidity solutions, and we’re especially excited to bring our ultra-short income capabilities to the ETF market.”

The fund seeks to provide high current income while offering exposure to low volatility. The securities carried by the fund are concentrated in the banking industry, and 25% of net assets are normally invested in domestic or dollar-denominated foreign bank obligations.

BKUI seeks to maintain an effective duration of a year or less, but in cases of high volatility in the markets, durations could be longer. Duration is a marker of an investment’s “interest rate risk.” The fund doesn’t carry any restrictions on its average effective portfolio maturity or on the effective duration or maturity of the fixed income securities it may invest in.

Putting BKUI To The Test

The rating of BKUI, under normal market conditions, will be A at a minimum, with investments carrying a rating of Baa3 on Moody’s; BBB- on the S&P; or BBB- on Fitch. Additionally, or else are in the top or second tier of ratings for short-term investments by any of the aforementioned three or an equivalent nationally recognized statistical rating organization.

BKUI is sub-advised by Dreyfus Cash Investment Strategies and uses a top-down and bottom-up approach, and offers downside protection through a combination of overnight investing and investing in short-term, high liquidity securities.

The portfolio managers seek to find undervalued bonds or the view concerning the bond is to a bearish extreme, as well as invest in bonds when research has indicated that the portfolio needs to rebalance to favor a particular security. The portfolio managers use their expectations concerning future interest rates compared to the current yield curve to manage the fund’s positioning. The yield curves compare interest rates of bonds with the same credit ratings but different maturities.

“Our mission in entering the ETF marketplace last year was to make our leading investment capabilities accessible to a broader range of clients through the ETF structure,” said Andy Provencher, BNY Mellon Investment Management Head of North American Distribution. “We have an ambitious product pipeline of active ETFs that we’re excited to bring to market over the next several months. Continuing to launch active ETFs strengthens the suite of solutions we’re able to offer clients and deepens our relationships by meeting their evolving needs for more low-cost, tax-efficient investment strategies.”

BKUI carries an expense ratio of 0.12%

For more information, visit www.bnymellon.com.

This article originally appeared on ETFTrends.com


Content continues below advertisement

» Popular Pages

  • Tickers
  • Articles

Jun 13

Main Management Market Note: June 13, 2025

Jun 13

Stocks Rally in May as Tariff Fears Subside; Long Yields Move Higher

Jun 13

Boeing Stock Continues to Take Flight After April Sell-Off

Jun 13

The Value of Balancing Bitcoin With T-Bills

Jun 13

Look Across the Pond for Small-Cap Winners

Jun 13

Schwab Debuts Government Money Market ETF

Jun 13

What Closed-End Funds Could Offer Amid Uncertain Times

Jun 13

Midstream/MLP ETFs See Strong Flows Amid Outperformance YTD

Jun 13

Some Undervalued Tech Stocks Reside in This ETF

Jun 12

Bitcoin Miners Could Find Big Opportunity in Data Centers

QQQ

Invesco QQQ Trust Series I

VOO

Vanguard S&P 500 ETF

SCHD

Schwab US Dividend Equity ETF...

IBIT

iShares Bitcoin Trust ETF

IVV

iShares Core S&P 500 ETF

SPY

SPDR S&P 500 ETF Trust

VEA

Vanguard FTSE Developed...

VTI

Vanguard Total Stock Market...

SMH

VanEck Semiconductor ETF

CNBS

Amplify Seymour Cannabis ETF


Content continues below advertisement

Loading Articles...
Our Sites
  • VettaFi
  • Advisor Perspectives
  • ETF Trends
Tools
  • ETF Screener
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Database Pro
More Tools
  • Financial Advisor & RIA Center
Explore ETFs
  • ETF News
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Information
  • Contact Us
  • Terms of Use and Privacy Policy
  • © 2025 VettaFi LLC. All rights reserved.

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

ETF Education Channel

How to Allocate Commodities in Portfolios

Tom LydonApr 26, 2022
2022-04-26

A long-running debate in asset allocation circles is how much of a portfolio an investor should...

Core Strategies Channel

Why ETFs Experience Limit Up/Down Protections

Karrie GordonMay 13, 2022
2022-05-13

In a digital age where information moves in milliseconds and millions of participants can transact...

}
X