January Snapshot

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February 17, 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.

1The Global Investment and Economics Analysis team at BNY Mellon Investment Management (GEIA) monthly market roundup: February 2021. 2GEIA monthly market roundup: February 2021. 3NYTimes: Robinhood raises another $2.4 billion to meet demand of frenzied trading. February 2, 2021. 4S&P Global: U.S. Equities Market Attributes January 2021. February 1, 2021. 5Yahoo Finance. January jobs report - Economy added 49,000 payrolls as unemployment rate dropped to 6.3%. February 4, 2021. 6GEIA monthly market roundup. February 2021. 7GEIA monthly market roundup. February 2021. 8GEIA monthly market roundup: February 2021. 9GEIA monthly market roundup: February 2021. 10Morningstar: South Korea Inflation 0.6% in January. February 1, 2021. 11GEIA monthly market roundup: February 2021. 12Business Insider: Philippines Inflation highest in 2 years. February 5, 2021. 13GEIA Monthly Market Roundup: February 2021. 14Oil Price: WTI Breaks $55 For the First Time Since January. February 2, 2021. 15GEIA monthly market roundup: February 2021. 16World Bank: Commodities Price Data: February 2, 2021.

Market Makers

“The rotation from growth to value started in late summer indicating the possibility of renewed demand for cyclical sectors more positioned to benefit from the economic recovery. As Covid-cases have picked up along with the accompanying restrictions, some of the outperformance has moderated. However, we believe markets will look through nearterm economic weakness towards an improved second half and value to continue its outperformance.

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

Going for Growth

“We believe a successful vaccine rollout is key to a continued recovery. As more of the population gets vaccinated, countries can further reopen their economies leading to increased consumer activity and improved confidence.”

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

Inflation Intelligence

Currencies and Commodities

“Retail investors pushed silver past US$29 but nowhere near the peak of 1969-1970. Some of the increased demand can be attributed to concern surrounding the increase in the US money supply and resulting dollar weakness.”

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.

MSCI ACWI: The MSCI All-Country World is an index that tracks the performance of both Developed and Emerging Market equities.

S&P 600: A benchmark index for small-cap stocks published by Standard and Poors.

UK Services PMI: The Services Purchasing Managers’ Index (PMI) measures the activity level of purchasing managers in the services sector.

US ISM Manufacturing Business Prices Paid Sub Index: One of a number of indicators pointing to the degree of inflationary pressures in the economy.

Consumer Price Index: Index measures changes in the price level of market basket of consumer goods and services purchased by households.

Eurozone Headline Inflation: Headline inflation is the raw inflation figure reported through the Consumer Price Index (CPI).

USD: The US Majors Dollar Index tracks the performance of the USD versus a basket of foreign currencies including the euro, Japanese yen, Pound sterling, Canadian dollar, Swedish krona, and Swiss Franc.

NFIB: National Federation of Independent Businesses is the largest small business association in the US.

FX crosses: A currency pair or transaction that does not involve the US Dollar.

 

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.

All investments involve risk including loss of principal. Certain investments involve greater or unique risks that should be considered along with the objectives, fees, and expenses before investing.

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

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