October snapshot

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November 10, 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.

1The Global Economics and Investment Analysis (GEIA) monthly market roundup: October 2020. 2GEIA monthly market roundup: October 2020. 3As represented by the MSCI All Country World Index, which tracks the performance of both developed and emerging market equities. 4GEIA monthly market roundup: October2020. 5GEIA monthly market roundup: October 2020. Data as of October 27, 2020, Bloomberg. 6S&P Global: Promising October jobs report could lessen chances for US fiscal relief. Accessed November 2020. 7Ibid. 8GEIA monthly market roundup: October2020. 9GEIA monthly market roundup: October 2020 10GEIA monthly market roundup: October2020. 11GEIA Monthly Market Roundup: October 2020. 12GEIA monthly market roundup: October 2020. 13Nasdaq: Mexico inflation slightly above forecast in October at 17-month high. November 9, 2020. 14GEIA Monthly Market Roundup: October 2020. 15GEIA monthly market roundup: October 2020. 16GEIA Monthly Market Roundup: October 2020. 17World Bank: Commodities Price Data: November 3, 2020.

Market Makers

“Companies with business models benefiting from more digital interaction and people staying at home have done well compared to their counterparts in the travel and hospitality industries. However, this may reverse course as promises of an effective vaccine brings hope of a return to normalcy.”

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

Growth in the Green?

“There has been an uneven recovery in the labor market, with higherincome workers faring much better than low earners. We expect increased focus on federal solutions to address this gap.”

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

Inflation Intelligence

Commodity and Currencies

“Oil and commodities remain the worst performing asset class YTD due to restrictions put in place from Covid-19 despite a steadily improving global economic recovery. With the recent and positive vaccine developments, we expect some rotation into more cyclical areas of the market that have lagged YTD.”

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.

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

ISM 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.

Core inflation: Measures inflation but excludes food and energy.

Core Personal Consumption Expenditures (PCE): The Federal Reserves’ preferred measure of inflation.

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

Bloomberg Barclays US Aggregate Index (US Agg): A broad base, market capitalization-weighted bond market index representing intermediate term investment grade bonds traded in the United States

Bloomberg Barclays Global Aggregate Index (Global Agg): The Bloomberg Barclays Global Aggregate Total Return (USD hedged) Index is a broad-based measure of the global investment-grade fixed income market.

MSCI EM: The MSCI EM index tracks the performance of Emerging Market Equities.

MSCI EAFE: The MSCI EAFE Index is an index that tracks the performance of Developed Market equities across Europe, Australasia and the Far East excluding the US and Canada.
EU STOXX 600: The STOXX 600 is an index that represents the performance of 600 large, mid and small capitalization companies across 18 countries in the European Union. The index is hedged in USD.

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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