July snapshot

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August 14, 2020

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.

1BNY Mellon via Bloomberg. Accessed August 7, 2020. 2The Street: Stocks End Higher for Day and Month; Apple Jumps to Record; Stimulus Talks Saturday. July 31, 2020. 3BNY Mellon via Bloomberg. Accessed August 7, 2020. 4Yahoo Finance: US STOCKS-Futures sink as data shows historic slump. July 30, 2020. 5Reuters: U.S. second-quarter GDP falls at steepest rate since Great Depression. July 30, 2020. 6CNBC: EU leaders reach $2 trillion deal on recovery plan after marathon summit. July 20, 2020. 7Business Insider: US weekly jobless claims hit 1.4 million, post second straight weekly increase. July 30, 2020. 8CNN Business: How Germany’s economy shrank 10% but the jobless rate barely moved. July 30, 2020. 9BNY Mellon via Bloomberg. Accessed August 7, 2020. 10Wall Street Journal: China’s strong July auto sales fuel hopes for growth. August 11, 2020. 11BNY Mellon via Bloomberg. Accessed August 7, 2020. 12Forbes: 1.8 million jobs added in July as US economy’s pandemic recovery falters. August 7, 2020. 13CNBC: UPDATED FRI, JUL 31 20205:40 PM EDT Stock market live Friday: NASDAQ jumps 1.5%, Gold tops $2,000 for first time, Apple record high. July 31, 2020. 14BNY Mellon via Bloomberg. Accessed August 7, 2020. 15BNY Mellon via Bloomberg. Accessed August 7, 2020. 16CNBC: Gold hits new record, posts best month since 2016. July 31, 2020.

Substance on Stocks

“S&P 500 forward price estimates have steadily recovered from their February to April descent and are just below where they were pre- Covid. Further upwards momentum for estimates would be positive for risk assets.”

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

Under the Macro-scope

“A slowing recovery in the job market could derail the economic recovery and weaken sentiment. Additional fiscal stimulus will likely be required to patch the income gap and propel the economy further along. If economic restrictions linger and consumer confidence stalls, risks will continue to grow and the path forward will become more uncertain.”

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

Recovery on the Horizon?

Commodity Club

“Copper, a barometer of global economic activity, has underperformed gold, since July. This suggests the global economic recovery may be slowing.”

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

S&P 500: A stock market index that measures stock performance of 500 large companies listed on the stock exchanges in the United States. MSCI All-Country World index: The MSCI All-Country World is an index that tracks the performance of both Developed and Emerging Market equities. Bloomberg Commodity index: The Dow Jones UBS Commodity index is designed to provide diversified commodity exposure with weightings based on the commodity’s liquidity and economic significance 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. Conference Board Consumer Confidence: Published by The Conference Board to measure the degree of optimism on the state of the US economy that consumers are expressing through their activities of savings and spending. Analysts’ Consensus 12-month target price: Analysts’ projection of a security’s future price.

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 advisor or visit im.bnymellon.com. Please read the prospectus carefully before investing.

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.

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.

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. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission. This information contains projections or other forward-looking statements regarding future events, targets or expectations, and is only current as of the date indicated. There is no assurance that such events or expectations will be achieved, and actual results may be significantly different from that shown here. 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.

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