BNY Mellon Investment Management launched two actively managed thematic ETFs. The BNY Mellon Women’s Opportunities ETF (BKWO) and the BNY Mellon Innovators ETF (BKIV) begin trading today on the Nasdaq. BNY Mellon subsidiary Newton Investment Management North America will subadvise the funds.
“These ETFs will enable investors to potentially benefit from themes we believe will be important drivers of economic and societal growth and progression,” said BNY Mellon IM’s head of North America distribution David DiPetrillo in a news release.
BKWO invests principally in companies that incorporate gender equitable practices in the workplace. It also targets firms that provide products or services that help women meet their work or personal needs. This includes businesses relating to household responsibilities, dependent and elder care responsibilities, and gender-specific healthcare.
Portfolio managers Julianne McHugh and Miki Behr will co-manage BKWO.
“Gender gaps have economic impacts—female workforce participation rates have fallen over the last decade and representation in leadership positions is losing ground,” McHugh said. “We believe that companies that support women, cultivate strong cultures, offer attractive benefit policies in the workplace, as well as deliver offerings which empower women, are positioned to better perform over time.”
Listen: “How to Invest in Innovation”
Additionally, BNY Mellon will contribute at least 10% of BKWO’s management fee annually to one or more charitable organizations that promote opportunities for women and/or girls. BNY Mellon is currently partnering with Girls Inc., which inspires girls to be strong, smart, and bold through direct service and advocacy. The BNY Mellon Foundation will also provide grant funding to Girls Inc. and its New York affiliate, Girls Inc. of New York City.
In Thematic ETFs, a Broad Interpretation of Innovation
BKIV, meanwhile, invests in innovation-driven companies that seek to transform or disrupt the way people live and work. The fund invests across all market capitalizations through a range of industries and sectors to capture long-term transformational growth opportunities. Newton’s chief investment officer and head of equity, John Porter, and Edward Walter will manage BKIV.
“Average company life spans have dropped sharply, with 52% of Fortune 500 companies having disappeared in the last 15 years,” Porter said. “Paired with COVID, which spurred innovation and disruption at an unprecedented rate, this provides many attractive investment possibilities in every corner of the economy.”
Added Porter: “Our broad interpretation of innovation, coupled with our institutional capabilities and deep experience of thematic investing, means we can look at emerging opportunities in the healthcare, information technology and consumer discretionary sectors among others.”
“BNY Mellon previously established a strong ETF business with a mix of active and index-based products,” said VettaFi’s head of research Todd Rosenbluth. “Given their resources and role within the financial services community, there’s room for further growth.”
Both funds carry an expense ratio of 0.50%.
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