BNY Mellon High Yield ETF (BKHY) Educational Report

What this ETF is trying to do

The BNY Mellon High Yield ETF (BKHY) is an exchange-traded fund listed on the NYSE. While the specific holdings are not listed in this report, high-yield ETFs generally focus on providing income to investors through regular cash payments.

What the numbers show

It is important to understand that "price return" and "total return" tell different stories. Price return only tracks how the share price changes. Total return includes both the share price changes and the cash distributions paid out to investors.

Based on the data provided:

• Year-to-Date (YTD): The price return is -2.85%, but the total return is 1.90%.

• One Year: The price return was -4.24%, while the total return was 2.99%.

• Three Year: The price return was 2.23%, but the total return was much higher at 27.64%.

If you look at the price alone, an estimated price from roughly one year ago was $48.77. The current price is $46.70. This shows a share-price decline over the last year. However, because the total return is positive, it shows that the cash distributions helped offset some of that price drop.

Income and distribution explanation

This ETF has a distribution yield of approximately 7.46%. This number describes the cash distributions relative to the ETF's price. The fund usually pays out money monthly, with 12 payments recorded over the last year.

For beginners, it is important to remember that a high distribution yield does not mean you earned that same percentage in total return. You must look at the "total return" figure to see how the investment performed overall.

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 a sign of erosion, it is not proof of it.

In this case, the fund has an erosion-risk score of 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 fund has a history of positive total returns over one, three, and five-year periods.

• It provides a regular distribution yield of approximately 7.46%.

Cons

• The fund has experienced share-price declines over the last year and year-to-date.

• The price return has been negative in several recent timeframes.

Beginner takeaway

When looking at BKHY, notice the difference between the falling share price and the positive total return. This happens because the cash distributions (the income) add value back to the investor, even when the price of a single share goes down. Always check both price return and total return to get the full picture.