BNY Mellon has introduced a new ETF, offering investors an actively managed, value-focused approach to US large-cap equities.

BNY Mellon has rolled out a new ETF offering value-oriented US equities exposure.

The BNY Mellon Dynamic Value ETF (BKDV US) has been listed on NYSE Arca with an expense ratio of 0.60%.

Managed by Newton Investment Management, the fund aims to deliver capital appreciation with a secondary focus on income by targeting undervalued stocks with strong fundamentals and potential catalysts for growth.

The fund managers look for companies that exhibit low price-to-book ratios compared to the S&P 500. While the ETF primarily targets large-cap companies, it remains flexible in its ability to invest across market capitalizations, allowing for a diversified approach within the value space.

The fund’s investment process combines quantitative screening with fundamental research to pinpoint companies with attractive valuations, sound financials, and specific growth catalysts that are expected to drive performance. The ETF’s actively managed structure enables the portfolio managers to capitalize on market opportunities dynamically, selecting companies they believe are trading below intrinsic value due to market inefficiencies.

The fund’s value-oriented strategy means that it could underperform growth-focused or more diversified funds during certain market cycles. However, for long-term investors seeking a value strategy grounded in strong fundamentals and disciplined management, BKDV provides a compelling option.