August snapshot

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September 9, 2021

BNY Mellon is committed to delivering cost-effective, quality solutions to help investors achieve their financial goals. Whether you’re new to investing or you’re a seasoned investor, exchange-traded funds (ETFs) can be a simple, cost-effective approach for broad market participation. Here we consider some of the major trends making headlines today.

1S&P Global: US Equities Market Attributes August 31, 2021. 2Global Economics and Investment Analysis (GEIA) monthly market roundup: September 2021. 3S&P Global: US Equities Market Attributes August 31, 2021. 4GEIA monthly market roundup: September 2021. 5Reuters: Supply shortages sap strength of euro zone recovery. September 3, 2021. 6Washington Post: US economy added a lackluster 235,000 jobs in August, a disappointing month as virus surged. September 3, 2021. 7GEIA monthly market roundup: September 2021. 8GEIA monthly market roundup: September 2021. 9CNBC: ECB to kick off its tapering debate as inflation surges to a 10-year high. September 8, 2021. 10GEIA monthly market roundup: September 2021. 11MarketWatch: South Korea’s inflation at 2.6% in August, above target. September 1, 2021 12GEIA monthly market roundup: September 2021. 13GEIA monthly market roundup: September 2021. 14GEIA monthly market roundup: September 2021. 15World Bank: Commodities Price Data: September 2, 2021. 16Reuters: Oil posts biggest week of losses in nine months as Delta variant spreads. August 20, 2021.

Past performance is no guarantee of future results.

Market Makers

“The FANG Index gained momentum over equal-weight S&P 500 Index in August. As the Delta variant stoked concern over the recovery, technology outperformed cyclical stocks associated with reopening.”

The Global Investment and Economics Analysis team at BNY Mellon Investment Management

Going for Growth

“Timely data is slowing heading into Q4. This is largely due to renewed concerns over the Delta variant and the possibility of new, or prolonged, restrictions.”

The Global Investment and Economics Analysis team at BNY Mellon Investment Management

Inflation Intelligence

“Supply-side bottlenecks and the need for increased labor market flexibility are leading to higher prices and even greater uncertainty whether the inflation uptick will be transitory or more permanent. We are past the point that higher prices can be largely attributed to base effects.”

The Global Investment and Economics Analysis team at BNY Mellon Investment Management

Fixed income, Commodities and Currencies

“While the USD strengthened slightly in August, depressed real yields lack support for the USD and are putting downward pressure on the greenback against major currencies.”

The Global Investment and Economics Analysis team at BNY Mellon Investment Management

DEFINITIONS

China Caixin Manufacturing PMI: Measures the performance of the manufacturing sector and is derived from a survey of 430private industrial companies in China.

Eurozone Markit Composite PMI: Tracks business trends across manufacturing and service sectors based on data from over 5,000 companies in the Euro Area.

Nikkei 225 JPY Index: The leading and most-respected index of Japanese stocks, composed of 225 blue-chip companies trading on the Tokyo stock exchange.

Purchasing Managers’ Index, or PMI: An economic indicator derived from monthly surveys of private sector companies. A level above 50 indicates expansion compared to the prior month and below 50 contraction.

S&P 500: A stock market index that measures stock performance of 500 large companies listed on the stock exchanges in the United States.

S&P SmallCap 600: A stock market index that measures the small-cap range of American stocks using a capitalization-weighted index.

Spot prices: The current price in the marketplace at which a given asset can be bought or sold in the marketplace.

US 10-year Treasury: Average yield of a range of Treasury securities all adjusted to the equivalent of a ten-year maturity.

 

Investors should consider the investment objectives, risks, charges and expenses of a fund carefully before investing. To obtain a prospectus, or a summary prospectus, if available, that contains this and other information about a fund, contact your financial professional or visit im.bnymellon.com/etf. Please read the prospectus carefully before investing.

ETFs trade like stocks, are subject to investment risk, including possible loss of principal. The risks of investing in the ETF typically reflect the risks associated with the types of instruments in which the ETF invests. Diversification cannot assure a profit or protect against loss.

ETF shares are listed on an exchange, and shares are generally purchased and sold in the secondary market at market price. At times, the market price may be at a premium or discount to the ETF’s per share NAV. In addition, ETFs are subject to the risk that an active trading market for an ETF’s shares may not develop or be maintained. Buying or selling ETF shares on an exchange may require the payment of brokerage commissions.

Bonds are subject to interest rate, credit, liquidity, call and market risks, to varying degrees. Generally, all other factors being equal, bond prices are inversely related to interest-rate changes and rate increases can cause price declines. High yield bonds involve increased credit and liquidity risk than higher rated bonds and are considered speculative in terms of the issuer’s ability to pay interest and repay principal on a timely basis. Equities are subject to market, market sector, market liquidity, issuer, and investment style risks to varying degrees. Small and midsized company stocks tend to be more volatile and less liquid than larger company stocks as these companies are less established and have more volatile earnings histories. Investing in foreign denominated and/or domiciled securities involves special risks, including changes in currency exchange rates, political, economic, and social instability, limited company information, differing auditing and legal standards, and less market liquidity. These risks generally are greater with emerging market countries.

Currencies can decline in value relative to a local currency, or, in the case of hedged positions, the local currency will decline relative to the currency being hedged. These risks may increase fund volatility. Commodities contain heightened risk including market, political, regulatory, and natural conditions, and may not be appropriate for all investors.

Past performance is no guarantee of future results.

This material has been distributed for informational purposes only and should not be considered as investment advice or a recommendation of any particular investment, strategy, investment manager or account arrangement, and should not serve as a primary basis for investment decisions. Please consult a legal, tax or financial professional in order to determine whether an investment product or service is appropriate for a particular situation.

Views expressed are those of the author stated and do not reflect views of other managers or the firm overall. Views are current as of the date of this publication and subject to change. The information in this presentation is based on current market conditions, which will fluctuate and may be superseded by subsequent market events or for other reasons.

BNY Mellon Investment Management is one of the world’s leading investment management organizations, encompassing BNY Mellon’s affiliated investment management firms, and global distribution companies. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation and may also be used as a generic term to reference the Corporation as a whole or its various subsidiaries generally. BNY Mellon ETF Investment Adviser, LLC is the investment adviser and BNY Mellon Securities Corporation is the distributor of the BNY Mellon ETF funds, both are subsidiaries of BNY Mellon.

No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission.

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©2021 BNY Mellon Securities Corporation, distributor, 240 Greenwich St., New York, NY 10286.

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