This is an actively managed ETF that invests in companies in developed markets outside the US. Rather than holding a broad range of stocks, it concentrates its weight in a small number of high-quality companies chosen by the management team, and it references the MSCI EAFE as its performance benchmark.

It suits investors who want to increase their exposure to developed markets outside the US while preferring an active stock-selection approach.

It is an ETF run by BNY Mellon using an active management approach.

The fund follows an active strategy in which the management team uses fundamental analysis to select high-quality developed-market companies outside the US and concentrates weight in a small number of holdings. Because it builds its portfolio by evaluating each stock's fundamentals rather than mechanically replicating an index, performance depends heavily on the management team's selection skill.

• Concentrated active management of high-quality developed-market stocks outside the US
• Fundamentals-based stock selection rather than index replication

Assets under management (AUM) stand at $131.4M, and the expense ratio is 0.65% per year.

Its management fee is somewhat higher than that of index-tracking international ETFs, and trading liquidity may also be more limited than that of large passive ETFs.

The fund is affected both by the movement of developed-market equities outside the US and by changes in the value of local currencies against the dollar. Because of its concentrated portfolio, the performance of a small number of stocks has a relatively large effect on overall returns.

Demand for regional diversification away from a US-heavy concentration underpins the international category, and growing interest in active ETFs is another driver of fund flows.

Its strength is differentiation through the management team's stock selection, while its weaknesses are a higher fee than passive funds and the volatility that comes with concentration.

ETFs shown in the table such as EFA, VEA, IEFA, and VXUS are lower-cost passive core funds that invest broadly across developed markets outside the US or across the globe. They differ from BKCI in management approach because they hold a wide range of stocks rather than concentrating. Within the same international category, you can also consider IEMG to extend exposure to emerging markets, or ACWI to capture the entire world in a single fund.

These are points to review before investing in BKCI. As an actively managed, concentrated ETF, it is wise to check the management approach, costs, stock concentration, and non-US currency exposure in advance, and to compare it with passive core ETFs.

Concentration in a small number of stocks and exchange-rate movements of non-US currencies are the main drivers of short-term volatility. Given the nature of active management, performance relative to the benchmark may diverge depending on the management team's selection results.

It suits investors who want to approach developed markets outside the US through active stock selection. If cost and broad diversification are the priority, it is advisable to compare passive core funds such as VEA and IEFA as well.