BNY Mellon High Yield ETF

Frequently Asked Questions About BKHY

What does BKHY invest in?

BNY Mellon ETF Trust - BNY Mellon High Yield ETF is an exchange traded fund launched and managed by BNY Mellon ETF Investment Adviser, LLC. The fund is co-managed by Insight North America LLC. It invests in the fixed income markets of the United States. The fund primarily invests directly, through derivatives and through other funds in U.S. dollar-denominated, high yield, fixed-rate, taxable corporate bond that are rated Ba1, BB+, BB+ or below by Moody’s, S&P and Fitch respectively. The fund seeks to invest in securities with at least one year until final maturity. The fund seeks to benchmark the performance of its portfolio against the Bloomberg US Corporate High Yield Total Return Index and the Bloomberg US Universal Index. The fund employs proprietary research to create its portfolio. BNY Mellon ETF Trust - BNY Mellon High Yield ETF was formed on April 22, 2020 and is domiciled in the United States.

What is the expense ratio of BKHY?

BNY Mellon High Yield ETF (BKHY) charges an expense ratio of 0.22%. This is the annual fee deducted from fund assets to cover management and operations.

What is BKHY's distribution yield?

BKHY's trailing-twelve-month yield is 8.09%, calculated from the sum of distributions over the past year divided by the current price.

How does BKHY's covered-call strategy work?

BKHY sells call options against the stocks (or index) it holds, collecting premium income that gets passed through to shareholders as distributions. The strategy generates above-market income in flat or rising markets but caps upside — when the underlying rallies past the strike, the gains above the strike go to the option buyer, not the fund.

What is the duration of BKHY?

Effective duration measures BKHY's sensitivity to interest-rate changes — a duration of 6 means a 1% rate move shifts NAV by roughly 6% in the opposite direction. BKHY's current duration is published on the fund's factsheet on the issuer's website.

What is the credit quality of BKHY?

BKHY's credit quality breakdown — the share of holdings rated AAA through CCC and below — is published on the fund's factsheet. Higher-quality (investment-grade) funds yield less but carry less default risk than high-yield / junk bond funds.