BNY Adds New Value-Oriented ETF

For its investors, BKDV seeks to offer capital appreciation. The fund has a net expense ratio of 0.60%.

Newton Investment Management North America (NIMNA) serves as the fund’s sub-advisor. NIMNA looks for value-oriented equities within the Russell 3000 Value Index, the MSCI ACWI Value Index, or the S&P Composite 1500 Value Index.

When choosing assets to add to BKDV’s portfolio, NIMNA takes a bottom-up approach that focuses on three key factors. These include intrinsic value, such as cash flows and price-to-earnings ratios.

Additionally, equities are scrutinized based on their business fundamentals, such as income and balance sheets. Lastly, the overall business momentum of the companies is analyzed, including growth of cash flow generation, along with company- and industry-specific factors. 

A value-focused strategy can be highly beneficial in today’s economic environment. With the Federal Reserve trimming down interest rates, companies can feel empowered to build up operations and increase overall cash flow. 

BKDV may invest in companies of any market cap size. However, BNY expects the fund to have a focus on large-cap companies in particular. 

While the fund will primarily focus on domestic companies, BKDV may also invest in foreign securities. Up to 30% of the fund’s net assets may be allocated this way. 

Per the fund prospectus, BKDV may hold stronger exposure to particular market sectors if BNY and NIMNA deem it appropriate. As of Oct. 21, 2024, the fund holds significant exposure in the financials sector. 

BNY has extensive experience in piloting its value-oriented strategy. The mutual fund version of the strategy, the BNY Dynamic Value Fund, has been on the market since 1995.  

Currently, BNY has 14 different ETFs listed in the United States. These funds alone represent over $7 billion in terms of assets under management. 

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