April snapshot

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May 8, 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.

1Barons: The Dow fell 288 points, but marked the biggest monthly gain in decades: April 30, 2020. 2MarketWatch: Gold ends lower in volatile trading, post a monthly gain of 6%. April 30, 2020. 3MarketWatch: May the 4th be with the stock market: After the best April for Dow, S&P 500 in 82 years, is ‘sell in May’ in coronavirus era a smart strategy? May 4, 2020. 4Forbes: How Investors Should Interpret Shell’s First Dividend Cut In 75 Years. May 3, 2020. 5AP News: Apple pinched by pandemic; profit, iPhone sales decline. April 30, 2020. 6Businesswire: IDC Lowers Forecast for Worldwide IT Spending to a Decline of 5.1% in 2020, but Cloud Spending Remains Relatively Resilient. May 4, 2020. 7Statista: Ranking of the most downloaded mobile apps in the Apple app store after the coronavirus (Covid-19) outbreak in France as of April 3, 2020, by number of downloads. April 3, 2020. 8Financial Times: Alibaba pledges to spend $28bn on cloud computing. April 20, 2020. 9Reuters: China’s April factory activity unexpectedly dips as export orders collapse - Caixan PMI. April 29, 2020. 10CNBC: Manufacturing falls sharply in April, but not as much as expected. May 1, 2020. 11CNN: 30 million Americans have filed initial unemployment claims since mid-March. April 30, 2020. 12US News: Automotive Sales Sink in April as Coronavirus Collapses Consumer Demand. May 1, 2020. 13Bloomberg: Oil plunges below zero for first time in unprecedented wipeout. April 19, 2020. 14Reuters: OPEC April oil output surges to 13-month high before new cut deal. April 30, 2020. 15FX Street: Saudi Arabia’s oil output surged to record high in April. May 1, 2020. 16CNBC: OPEC and allies agree to historic 10 million barrel per day production cut. April 9, 2020.

Market Records

“Global stocks surged across the board in April after the worst monthly performance since October 2008, on improving risk-on sentiment as several countries started to ease lockdown measures and central banks fueled the market liquidity. Overall, small caps outperformed large caps in the US, and growth widened its outperformance gap with value. Small caps had the best monthly performance since 2011.”

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

Tech Takeaways

Economic Examinations

“China’s manufacturing PMI has recovered but growth risks remain skewed to the downside from weak global growth, supply chain disruption, and a slowing job market.”

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

Central Bank Action

“China’s manufacturing PMI has recovered but growth risks remain skewed to the downside from weak global growth, supply chain disruption, and a slowing job market.”

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

Alibaba Cloud: A Chinese cloud computing company and subsidiary of Alibaba Group. US ISM Manufacturing PMI: The US Institute of Supply Management Manufacturing Purchasing Manager Index, which serves as a manufacturing gauge for the US. China Caixan Manufacturing PMI: A gauge of China’s manufacturing sector. PMI: Purchasing Managers’ Index. A figure above 50 signals expansion to the prior month, while below 50 indicates contraction. S&P 500: An index that measures the stock performance of 500 large companies listed on stock exchanges in the United States. S&P 500 equal weighted: Includes the same constituents as the capitalization weighted S&P 500, but each company in the S&P 500 EWI is allocated a fixed weight - or 0.2% of the index total at each quarterly rebalance. S&P 500 top 50: Consists of 50 of the largest companies from the S&P 500, reflecting U.S. mega-cap performance.

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.

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 investment advisor 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.

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.

©2020 BNY Mellon Securities Corporation, distributor, 240 Greenwich St., New York, NY 10286.

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