BNY Mellon has been a player in the ETF industry for years, however until just recently, it was always a 'behind the scenes' player. In early April, the Bank of New York Mellon changed that in a big way by not only introducing three brand new ETFs but offering one of them to clients for free.
Yes, you read that correctly, the BNY Mellon US Large Cap Core Equity ETF (BKLC) has an expense ratio of zero. The fund doesn't charge you anything to own it. Furthermore, the Bank's two other ETFs come with extremely low fees, 0.04% for each of them.
The BNY Mellon US Mid Cap Core Equity ETF (BKMC) and the BNY Mellon US Small Cap Core Equity ETF (BKSE). Both fall in the top 1% of lowest funds when based on expense ratio, and that's while the BNY Mellon US Large Cap Core Equity ETF was technically the first ETF to offer a zero-expense ratio. Since the launch of these three funds on April 9th, BNY Mello has also launched a few other ETFs, all of which have low fees but one other that doesn't have any, the BNY Mello Core Bond ETF (BKAG).
You may be wondering about another ETF that has been touted as a zero-fee ETF or the first free ETF, it's the SoFi Select 500 ETF (SFY) and the SoFi Next 500 ETF (SFYX) however while they don't currently have an expense ratio, they could in the future. The reason for that is because the SoFi products have a fee reducing waiver, which would need to be renewed for the fund to maintain its zero-fee long term. Continue reading "BNY Mellon With Truly Fee-Free ETF"