5 min readBy Ron Koren ETF Insider
How does the BKLC ETF work?
The BKLC ETF is a specialized investment fund that focuses on a specific sector. This exchange-traded fund offers investors exposure to a range of companies in this sector.
The BNY Mellon US Large Cap Core Equity ETF (BKLC) is managed by BNY Mellon Investment Adviser, Inc. Established to provide investors with exposure to the performance of 500 of the largest companies listed on U.S. stock markets, BKLC tracks the Solactive GBS United States 500 Index TR. The index's methodology involves selecting eligible securities based on market capitalization, reconstituting quarterly, and ensuring representation from various sectors. As of June 30, 2023, the index comprised 504 securities, with approximately 29% of its holdings in the information technology sector, in line with the industry concentration of the index. BKLC offers investors a diversified approach to the U.S. large-cap equity market, aligning with BNY Mellon's commitment to delivering effective investment solutions.
While the primary objective of the BNY Mellon US Large Cap Core Equity ETF (BKLC) is to track the Solactive GBS United States 500 Index TR, which focuses on the performance of the 500 largest companies in U.S. stock markets, it also reflects the dividend distribution of these constituent companies. Dividend distributions typically align with the individual dividend policies and performances of the companies included in the index. The index universe includes common stock and shares of real estate investment trusts (REITs) listed on major U.S. stock exchanges, and it reconstitutes quarterly in February, May, August, and November. As of June 30, 2023, the index consisted of 504 securities, offering investors exposure to both capital appreciation and potential dividend returns.
Tracking the Solactive GBS United States 500 Index TR is the primary objective of the BKLC (BNY Mellon US Large Cap Core Equity ETF). This index is designed to measure the performance of the 500 largest companies listed on U.S. stock markets, including common stocks and shares of real estate investment trusts (REITs). The index follows a free float market capitalization weighted methodology, selecting eligible securities based on market capitalization rankings, with the top 425 securities included. If needed, additional securities are selected to maintain a total of 500 companies in the index. The index rebalances quarterly in February, May, August, and November. As of June 30, 2023, the index was composed of 504 securities. BKLC seeks to closely replicate the performance of this benchmark, making it an attractive option for investors looking for broad exposure to large-cap U.S. equities while maintaining a focus on information technology, which accounted for approximately 29% of the index's holdings as of June 30, 2023.
The correlation aspect of the BKLC ETF, or the BNY Mellon US Large Cap Core Equity ETF, is essential for understanding its performance in relation to the broader U.S. stock market. BKLC seeks to track the Solactive GBS United States 500 Index TR, comprising 500 of the largest U.S. companies. Given this objective, BKLC is expected to have a strong correlation with the overall U.S. equity market. Investors can rely on BKLC for portfolio diversification, risk management, and potential hedging strategies due to its robust correlation with the broader market. Analyzing BKLC's correlations with various assets and sectors can provide valuable insights into market trends.
The BKLC Sector ETF focuses on the financial sector, with a particular emphasis on large-cap banking and financial services companies. It seeks to replicate the performance of the Solactive GBS United States 500 Index TR, which is designed to measure the performance of 500 of the largest companies listed on U.S. stock markets. As of June 30, 2023, the index was comprised of 504 securities, with approximately 29% of the index consisting of securities in the information technology sector. This concentration in the financial sector allows investors to access a diversified portfolio of established financial companies, but it also exposes the ETF to the potential risks associated with the financial industry.
The exposure characteristic of the BKLC ETF is primarily centered on the United States large-cap equity market. This ETF tracks the Solactive GBS United States 500 Index TR, which includes 500 of the largest companies listed on U.S. stock markets. The index covers a wide range of industries, offering investors a diversified exposure to various sectors and regions within the U.S. equity market. To gain deeper insights into BKLC''s exposure and correlations with other ETFs, ETF Insider''s web app provides comprehensive data and visualization tools for a more informed investment strategy.
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5 min readThe BKLC ETF is a specialized investment fund that focuses on a specific sector. This exchange-traded fund offers investors exposure to a range of companies in this sector.
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