The BNY Mellon Ultra Short Income ETF–First of Several Upcoming Active ETFs to Bring BNY Mellon Investment Management Specialist Capabilities to ETF Market
BNY Mellon Investment Management, one of the world’s largest asset managers with $2.3 trillion in assets under management, announced the expansion of its Exchange-Traded Funds (ETFs) range with the introduction of the BNY Mellon Ultra Short Income ETF, sub-advised by Dreyfus Cash Investment Strategies (CIS)2. This active ETF solution, which seeks to address the growing demand for increased yield with less volatility than a short-term bond fund and potentially additional return over money market funds3, is expected to commence trading on the New York Stock Exchange (NYSE) on Wednesday, August 11, 2021.
The introduction of the BNY Mellon Ultra Short Income ETF marks the first of several upcoming active ETF solutions from BNY Mellon Investment Management. In the coming months the firm expects to launch three active ETF sustainable solutions sub-advised by Newton Investment Management Limited (BNY Mellon Sustainable US Equity ETF, the BNY Mellon Sustainable International Equity ETF; and the BNY Mellon Sustainable Global Emerging Markets ETF)4; the BNY Mellon Responsible Horizons Corporate Bond ETF4, sub-advised by Insight North America LLC; and the BNY Mellon Concentrated International ETF4, sub-advised by Walter Scott & Partners Limited, each sub-adviser an affiliate of BNY Mellon.
“Given the current low rate environment, an ultra short bond ETF seeks to address the growing demand for increased yield with less volatility than a short-term bond fund and potentially additional return over money market funds3,” said John Tobin, Chief Investment Officer of Dreyfus Cash Investment Strategies. “The BNY Mellon Ultra Short Income ETF is a natural extension of our existing suite of liquidity solutions, and we’re especially excited to bring our ultra short income capabilities to the ETF market.”
BNY Mellon introduced in April 2020 its initial suite of eight Index ETFs, including the industry’s first true zero-fee5 ETFs in the largest equity and fixed income ETF categories without fee waivers or other restrictions—the BNY Mellon US Large Cap Core Equity ETF and the BNY Mellon Core Bond ETF—as well as a BNY Mellon High Yield Beta ETF. Since its debut, the initial BNY Mellon-sponsored ETF suite has grown to over $845M in AUM as of June 30, 2021, with spreads and quoted depth proving competitive across each strategy.
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“Our mission in entering the ETF marketplace last year was to make our leading investment capabilities accessible to a broader range of clients through the ETF structure,” said Andy Provencher, BNY Mellon Investment Management Head of North American Distribution. “We have an ambitious product pipeline of active ETFs that we’re excited to bring to market over the next several months. Continuing to launch active ETFs strengthens the suite of solutions we’re able to offer clients and deepens our relationships by meeting their evolving needs for more low-cost, tax-efficient investment strategies.”
