An actively managed ETF that invests primarily in U.S. large-cap value stocks by comprehensively analyzing fundamentals, valuation attractiveness, and business catalysts. It moves beyond passive index tracking and builds its portfolio based on the manager's professional research.

It is well suited for investors seeking alpha through active management while investing in high-quality names trading at a discount to the broader market.

This actively managed ETF was launched by BNY Mellon in 2024.

It applies a three-step research process to identify companies that trade below intrinsic value while exhibiting solid financial health and emerging business momentum. The primary investment universe consists of constituents of the Russell 3000 Value Index, with flexible adjustments to sector weightings.

• A hybrid strategy that blends the tradition of value investing with momentum analysis
• Professional active management by Newton Investment Management, a BNY Mellon affiliate

Assets under management (AUM) stand at $2.3B, with a total expense ratio of 0.60% per year.

Compared with the leading passive value ETFs shown in the table, such as VTV, IWD, and IVE, BKDV employs active management to respond more nimbly to shifts in the market environment and to capitalize on the art of stock selection.

Within a broader recovery in the value segment, the fund has delivered relatively steady results through its focus on high-quality names, while adjusting its portfolio in response to changes in interest rates and the economic cycle.

As interest-rate volatility increases, the fund's defensive characteristics and value orientation tend to attract inflows from investors seeking stable performance, and assets under management have been steadily expanding.

The fund pursues both stability and returns by selectively targeting high-quality value names, though investors should weigh its higher expense ratio relative to passive ETFs.

The VTV, IWD, and IVE shown in the table are standard options for value investing, but BKDV runs a more concentrated portfolio. Investors can broaden their exposure to small-cap value through VBR, or focus specifically on the value names within the S&P 500 via SPYV. In addition, high-dividend strategies centered on dividend-focused exposure provide an excellent comparison point from a value-investing perspective.

Below are the key points to verify before investing in the BNY Mellon Dynamic Value ETF (BKDV). It is advisable to approach the fund with a clear understanding of the characteristics of an active value strategy.

During periods when the value segment is out of favor, short-term performance may lag, and the additional costs of active management should be carefully reviewed for their impact on long-term returns.

This fund is a suitable option for those who prefer an active, hands-on approach to value investing that hand-picks undervalued, high-quality companies. It is a product designed to deliver smart value investing powered by BNY Mellon's investment capabilities.