BNY Mellon Investment Management has launched the first zero-fee ETFs, which will offer investors exposure to both fixed income and equities without fee waivers or other restrictions.
The BNY Mellon US Large Cap Core Equity ETF and the BNY Mellon Core Bond ETF will be offered to investors at a total expense ratio (TER) of 0.00% and come as part of a new suite of funds from the provider.
Benchmarked against Morningstar indices, the equity ETFs also include a small-cap (0.04% TER), mid-cap (0.04% TER), an international large-cap (0.04% TER) and an emerging markets large-cap fund (0.11% TER), while the bond ETFs will be benchmarked against Bloomberg Barclays indices and will include a short duration corporate bond fund (0.06% TER) and a high-yield beta ETF (0.22% TER).
Originally planned to launch in early March, the zero-fee equity ETF was listed on the NYSE on 9 April and its bond counterpart is due to launch soon, both delayed in an attempt to avoid the worst coronavirus-related volatility.
Currently, the funds are only available to US investors as they are not cross-listed on international borses or available as a UCITS fund.
Stephanie Pierce, CEO of ETF and index for BNY Mellon Investment Management, said the firm had chosen to launch its suits of low and no-cost ETFs to make its investment solutions available to a wider range of clients.
Mitchell Harris, CEO of BNY Mellon Investment Management, added: "We are putting the entire firm to work for our clients to offer high-quality products at a very competitive fee level.
"With the launch of our ETF range, BNY Mellon will now provide a complete ETF solution for our clients across the enterprise."