The BNY Mellon US Mid Cap Core Equity ETF (BKMC) was launched on April 9, 2020, and is a passively managed exchange traded fund designed to offer 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 $638.69 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. Thus, companies that fall under this category provide a stable and growth-heavy investment.
Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
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 1.28%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Industrials sector -- about 25.7% of the portfolio. Financials and Information Technology round out the top three.
Looking at individual holdings, Sandisk Corp (SNDK) accounts for about 1.01% of total assets, followed by Lumentum Holdings Inc (LITE) and Coherent Corp (COHR).
The top 10 holdings account for about 6.27% 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 5.95% so far this year and it's up approximately 10.25% in the last one year (as of 02/03/2026). In the past 52-week period, it has traded between $83.55 and $117.62.
The ETF has a beta of 1.05 and standard deviation of 17.23% for the trailing three-year period. With about 406 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 good 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 ETF (VO) and the iShares Core S&P Mid-Cap ETF (IJH) track a similar index. While Vanguard Mid-Cap ETF has $93.41 billion in assets, iShares Core S&P Mid-Cap ETF has $107.96 billion. VO has an expense ratio of 0.04% and IJH charges 0.05%.
Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are 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 ReportsThis article originally published on Zacks Investment Research (zacks.com).
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