BNY Mellon Investment Management, one of the world’s largest asset managers with $1.9 trillion in assets under management, has launched two actively managed ETFs designed to offer investors additional choices in women’s and innovation investments, said Matt Camuso, ETF strategist at BNY Mellon Investment Management.
The ETFs also are designed to help close the gap between active and passive ETFs, Camuso said in an interview.
The Women’s Opportunities ETF (BKWO) and the Innovators ETF (BKIV) are sub-advised by Newton Investment Management North America, a BNY Mellon investment firm and an equity and multi-asset manager.
"Seventy-seven percent of funds held in thematic ETfs are in passive products," Camuso said. "We wanted to offer our clients more choices. Our Innovators ETF is not just technology; it is any industry leader that is offering innovations to advance their particular industry. That is something that is a differentiator for us. We are also looking at a 2- to 3-year growth horizon not 10 years like many ETFs."
“The Women’s Opportunities ETF invests principally in companies that incorporate gender equitable practices in the workplace or provide products or services that enhance the ability of women to meet their work or other personal life responsibilities and needs, such as those relating to household responsibilities, dependent and elder care responsibilities, and gender-specific healthcare,” BNY Mellon Investment Management said.
Ten percent of the management fee for the ETF will go to Girls Inc., a non-profit organization created to help inspire girls to dedicate themselves to community service and advocacy, a press release said. The BNY Mellon Foundation also will provide grant funding to Girls Inc. and its New York affiliate, Girls Inc. of New York City, “in recognition of their impactful work that equips girls and young women to reach their full potential,” BNY Mellon Investment Management said.
“Gender gaps have economic impacts—if women and men participated equally in the economy $28 trillion could be added to global annual gross domestic product by 2025. We believe that companies that support women, cultivate strong cultures, offer attractive benefit policies in the workplace, as well as deliver offerings which empower women, are positioned to better perform over time,” Newton’s Julianne McHugh, co-manager of the fund along with Miki Behr, said in a statement.
“The BNY Mellon Innovators ETF invests in innovation-driven companies whose products and services seek to transform or disrupt the way we live and work. The fund invests across all market capitalizations through a wide range of industries and sectors in seeking to capture transformational growth opportunities over a long-term horizon,” Newton’s chief investment officer and head of equity, John Porter, co-manager of the fund along with Edward Walter, said in a statement.
“Average company life spans have dropped sharply, with 52% of Fortune 500 companies having disappeared in the last 15 years,” Porter said. “Paired with Covid, which spurred innovation and disruption at an unprecedented rate, this provides many attractive investment possibilities in every corner of the economy. Our broad interpretation of innovation means we can look at emerging opportunities in the healthcare, information technology and consumer discretionary sectors among others.”