ETF Education Report: BNY Mellon Concentrated International ETF (BKCI)

What this ETF is trying to do

The BNY Mellon Concentrated International ETF (ticker: BKCI) is an exchange-traded fund that focuses on international companies. Based on its top holdings, it invests in various large global businesses across different industries.

Top Holdings

The following is a partial list of the largest companies held by this ETF. Please note that holdings can change over time:

• Taiwan Semiconductor Manufacturing Co Ltd ADR (5.55%)

• ASML Holding NV (5.48%)

• TotalEnergies SE (4.98%)

• AIA Group Ltd (4.66%)

• Alimentation Couche-Tard Inc (4.39%)

• SAP SE (4.33%)

• Air Liquide SA (4.27%)

• Compass Group PLC (4.22%)

• Roche Holding AG Ordinary Shares New (4.15%)

• Dreyfus Institutional Preferred Government Money M (4.07%)

What the numbers show

When looking at how an ETF performs, it is important to look at two different types of returns: price return and total return.

• Price Return: This measures only the change in the share price.

• Total Return: This includes both the share price changes and any distributions (cash payments) made to investors.

For BKCI, the numbers show:

• Year-to-Date (YTD): The price return is approximately 1.20%. The total return is also approximately 1.20%.

• One-Year: The price return was approximately 13.24%, while the total return was approximately 15.15%.

• Three-Year: The price return was approximately 19.36%, while the total return was approximately 22.83%.

An estimated price from roughly one year ago was $52.12. The current price is $52.19.

Income and distribution explanation

This ETF provides some cash income through distributions. The distribution yield is approximately 1.37%. This number describes the cash payments relative to the current ETF price. It is important to remember that a distribution yield is not the same as total return.

The distributions for this ETF are described as "irregular" or "less frequent," with one payout recorded in the last 12 months.

NAV erosion explanation

"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the assets held by the fund). While a falling share price can sometimes be related to erosion, they are not the same thing.

For BKCI, the erosion-risk score is 94, which is labeled as "Stable / sideways." The erosion severity is rated as "good," and there is no severe erosion-risk flag present.

Pros

• The ETF has shown positive total returns over the one-year and three-year periods.

• The erosion-risk measurements suggest a stable profile.

Cons

• The distribution frequency is irregular, meaning investors cannot rely on a steady schedule of cash payments.

• The distribution yield is relatively low at approximately 1.37%.

Beginner takeaway

When studying BKCI, remember that price returns and total returns tell different stories. The price return only shows how the share price moved, while the total return includes the value of cash distributions. Additionally, always look at both the yield and the erosion-risk score to understand how a fund handles its value over time.