December snapshot

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January 15, 2021

Every day in the news we hear about the creation of new products or industries based on innovations in technology, old businesses being disrupted and new ways of doing business. Yet for most of us, investing in such trends, ideas and events is less than straightforward. Exchange traded funds (ETFs) may be a vehicle, which can offer exposure to innovative companies that can potentially impact our world. Here we consider some of the major trends making headlines today.

1GEIA monthly market roundup: January 2021. 2Yahoo Finance: Stock market news live updates: S&P 500 powers to a record closing high on the final day of 2020, ending the year with a 16% rise. December 31, 2020. 3GEIA monthly market roundup: January 2021. 4Reuters: Bitcoin touches record above 29,000, extending 2020 rally. December 31, 2020. 5GEIA monthly market roundup: January 2021. 6GEIA monthly market roundup: January 2021. 7Reuters: Vietnam’s 2020 economic growth slips to 30-year low due to Covid-19. December 27, 2020. 8GEIA monthly market roundup: January 2021. 9GEIA monthly market roundup: January 2021. 10Reuters: FOREX- Currency markets say ‘risk-on’ as dollar hits lowest since 2018. December 30, 2020. 11GEIA monthly market roundup: January 2021. 12BNN Bloomberg: 60% of Canadians worried about inflation in 2021: CIBC. December 29, 2020. 13GEIA Monthly Market Roundup: January 2021 14Bloomberg: Saudis take charge of oil market with surprise output cut. January 6, 2021. 15GEIA monthly market roundup: January 2021. 16World Bank: Commodities Price Data: January 5, 2022.

Market Makers

“It’s little surprise that US growth was the top performing asset of 2020. When lockdowns began in the wake of Covid-19, certain technology companies became some of the few beneficiaries of stay-at-home orders. Additionally, the tech-heavy Nasdaq crushed its indices brethren, returning 44.9% for the year.”

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

Going for Growth

“Small business revenue remains weak and suggests that Covid and its accompanying impact on social restrictions and consumer behavior remain substantial. Fiscal stimulus helped mitigate an even worse fallout and 2021 progress will largely depend on how successful the vaccine rollout is.”

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

Inflation Intelligence

Currencies and Commodities

“Commodity prices surged at the end of 2020 due to a variety of factors. To name a few, a weaker dollar played a hand, as did the strength of the Asian recovery and the announcement of Saudi Arabia’s future oil production cuts. This paves the way for a strong start to the year for commodities if dollar weakness persists and the Asian recovery strengthens amidst the global roll out of vaccines.”

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

DEFINITIONS

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

Manufacturing 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.

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

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 are 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. 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 and one of the top U.S. wealth managers, encompassing BNY Mellon’s affiliated investment management firms, wealth management organization 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 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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