BNY Mellon High Yield Beta ETF

BKHY

Börsenwert 159 Mio. $

When looking at both the domestic and global fixed income markets, to say they are both experiencing a little bit of dispersion right now would be an understatement, to say the least.

On September 17, the Federal Reserve cut interest rates by 25 basis points, ending months of debate and market speculation over when the central bank would trim rates down. This marked the first time the Fed lowered rates since December 2024.

Where are the best opportunities emerging for advisors and investors in the fixed income space? This is becoming an increasingly crucial question to answer, given that the Federal Reserve has now trimmed interest rates for the second time this year.

Equity strategies are not the only portfolio allocations that can benefit from diversification this year. With all eyes on the Federal Reserve ahead of potential rate cuts and leadership changes, many advisors and investors are reassessing their fixed income portfolios before the bond market shifts too much.

This week opened with a deluge of 15 new ETFs on Monday, with only a single launch occurring after that. Perhaps the most notable of the debuts was the first buffer ETF from iShares.

BNY Mellon High Yield Beta ETF offers an opportunity to invest in corporate credit while limiting exposure to overpriced and vulnerable bonds. BKHY's unique approach to investing, straddling the line between passive and active management, sets it apart from other high-yield bond ETFs. BKHY has outperformed the well-established SPDR® Bloomberg High Yield Bond ETF and offers high yield and diversification, but also carries high risk and interest rate sensitivity.

BKHY is a relatively new junk bond ETF that started in April 2020. It has managed to outperform the big kahuna in the space, SPDR® Bloomberg High Yield Bond ETF over the last 3 years. We examine whether this high-yield portfolio with a 7.22% yield makes sense for your portfolio.