On Monday, BNY closed out the month of March with the launch of the BNY Concentrated Growth ETF (BKCG).
The fund looks to offer capital appreciation over a long-term time horizon for its investors. It operates with a net expense ratio of 50 basis points.
Going for Growth
To achieve its investment objectives, BKCG uses a large-cap growth strategy. Growth companies are sought by the fund’s subadvisor, Fayez Sarofim & Co.
The investment process for BKCG begins with Fayez Sarofim & Co. identifying sectors that are expected to grow over time. In particular, the fund looks for sectors slated to expand over the course of three to five years, or perhaps even longer.
From there, the fund looks within these growth sectors for companies in standout positions to lead the way. This includes demonstrated profitability, good balance sheets, and an expanding presence across the globe. Furthermore, BKCG also looks for companies that are potentially being undervalued by the market at the moment.
The ETF’s portfolio is routinely monitored by the subadvisor to account for changing qualitative risks. Additionally, BKCG employs software that helps evaluate the portfolio’s total risk profile.
Per the fund prospectus, BKCG expects to use a buy-and-hold strategy, thus mitigating overall turnover rate. Notably, up to 10% of the fund’s assets may also be allocated to foreign securities.
Due to the nature of the fund’s strategy, BKCG may at times hold significant portfolio exposure to specific sectors on the market. As of March 31, 2025, the fund holds notable weight in the financials and technology sectors.
BKCG is the latest fund to join BNY’s ever-growing roster of ETF offerings. One of the largest BNY ETFs, the BNY US Large Cap Core Equity ETF (BKLC ), has over $3.2 billion in assets under management.
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