ETF Evaluator: BNY Mellon US Small Cap Core Equity ETF () Follow This ETF

BNY Mellon US Small Cap Core Equity ETF Overview

BNY Mellon US Small Cap Core Equity ETF (BKSE) is a passively managed U.S. Equity Small Blend exchange-traded fund (ETF). BNY Mellon launched the ETF in 2020.

The investment seeks to track the performance of the Solactive GBS United States 600 Index TR. Under normal circumstances, the fund will invest at least 80% of its net assets, plus any borrowings for investment purposes, in equity securities of small-capitalization U.S. companies, ETFs providing exposure to such securities, and derivatives with economic characteristics similar to such securities. The index is a free float market capitalization weighted index designed to measure the performance of 600 small-capitalization companies listed on U.S. stock markets. It is non-diversified.

About BNY Mellon US Small Cap Core Equity ETF (BKSE)

There are 5 members of the management team with an average tenure of 5.76 years: Marlene Walker-Smith (2020), David France (2020), Todd Frysinger (2020), Vlasta Sheremeta (2020) and Michael Stoll (2020). Management tenure is more important for actively managed ETFs than passive index ETFs.

The ETF has 2 primary benchmarks: S&P Composite 1500 TR USD index with a weighting of 100% and Solactive GBS United States 600 TR USD index with a weighting of 100%. BNY Mellon US Small Cap Core Equity ETF has 597 securities in its portfolio. The top 10 holdings constitute 3.9% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a nondiversified fund. The ETF is not considered to have an ESG focus with its investment selection and management.

BNY Mellon US Small Cap Core Equity ETF is part of the Equity global asset class and is within the U.S. Equity ETF group. BNY Mellon US Small Cap Core Equity ETF has 1.4% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 98.5% There is 1.4% allocated to foreign stock, and 0.2% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). BNY Mellon US Small Cap Core Equity ETF has 0.0% of the portfolio in cash.

Assets Under Management

The fund has $87 million in total assets, which is below the $4 billion average for the Small Blend category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

BKSE Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The BNY Mellon US Small Cap Core Equity ETF expense ratio is low compared to funds in the Small Blend category. BNY Mellon US Small Cap Core Equity ETF has an expense ratio of 0.04%, which is 91% lower than its category average, making the fund expense ratio grade a A. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. BNY Mellon US Small Cap Core Equity ETF has a portfolio turnover rate of 38%, which indicates that it holds its assets around / 0.0 years. By way of comparison, the average portfolio turnover is 50% for the Small Blend category.

Recently, in the month of July 2026, BNY Mellon US Small Cap Core Equity ETF returned -1.2%, which earned it a grade of B, as the Small Blend category had an average return of -2.1%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all ETFs in that category.

BNY Mellon US Small Cap Core Equity ETF has a trailing yield of 1.21%, which is above the 1.17% category average. The fund normally distributes its income quarterly.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

BNY Mellon US Small Cap Core Equity ETF Grades

Year to date, the ETF has returned 18.4%, 0.4 percentage points better than the category, which translates into a grade of C. The fund has returned 32.5% over the past year (grade of B), 15.4% over the past three years (grade of B) and 8.5% per year over the past five years (grade of B).

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