BNY
Mellon
ETF
Trust
SEMI-ANNUAL
REPORT
April
30,
2022
BNY
Mellon
US
Large
Cap
Core
Equity
ETF
BNY
Mellon
US
Mid
Cap
Core
Equity
ETF
BNY
Mellon
US
Small
Cap
Core
Equity
ETF
BNY
Mellon
International
Equity
ETF
BNY
Mellon
Emerging
Markets
Equity
ETF
BNY
Mellon
Core
Bond
ETF
BNY
Mellon
Short
Duration
Corporate
Bond
ETF
BNY
Mellon
High
Yield
Beta
ETF
Contents
The
Funds
Discussion
of
Funds’
Performance
3
Understanding
Your
Fund’s
Expenses
19
Statements
of
Investments
20
Statements
of
Assets
and
Liabilities
115
Statements
of
Operations
118
Statements
of
Changes
in
Net
Assets
121
Financial
Highlights
125
Notes
to
Financial
Statements
133
Information
About
the
Review
and
Renewal
of
Each
Fund’s
Management
and
Sub-Investment
Advisory
Agreements
144
FOR
MORE
INFORMATION
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The
views
expressed
herein
are
current
to
the
date
of
this
report.
These
views
and
the
composition
of
the
funds’
portfolios
are
subject
to
change
at
any
time
based
on
market
and
other
conditions.
Not
FDIC-Insured
Not
Bank-Guaranteed
May
Lose
Value
3
DISCUSSION
OF
FUND
PERFORMANCE
(Unaudited)
For
the
period
November
1,
2021,
through
April
30,
2022,
as
provided
by
David
France,
CFA,
Todd
Frysinger,
CFA,
Vlasta
Sheremeta,
CFA,
Michael
Stoll,
and
Marlene
Walker
Smith,
Portfolio
Managers
employed
by
the
fund’s
sub-adviser,
Mellon
Investments
Corporation
Market
and
Fund
Performance
Overview
For
the
six-month
period
ending
April
30,
2022,
the
BNY
Mellon
US
Large
Cap
Core
Equity
ETF
(the
“fund”)
produced
a
net
asset
value
total
return
of
−11.59%.
1
In
comparison,
the
Morningstar
®
US
Large
Cap
Index
SM
(the
“Index”),
the
fund’s
benchmark,
returned
−11.61%
for
the
same
period.
2,3
Large-cap
equities
lost
ground
during
the
reporting
period
under
pressure
from
increasing
inflation,
tightening
central
bank
policies
and
uncertainties
related
to
Russia’s
invasion
of
Ukraine.
The
difference
in
returns
between
the
fund
and
the
Index
resulted
primarily
from
transaction
costs
and
operating
expenses
that
are
not
reflected
in
Index
results.
The
Fund’s
Investment
Approach
The
fund
seeks
to
match
the
performance
of
the
Index.
To
pursue
its
goal,
the
fund
normally
invests
substantially
all
of
its
assets
in
equity
securities
comprising
the
Index.
The
Index
is
a
float-adjusted,
market
capitalization-weighted
index
designed
to
measure
the
performance
of
U.S.
large-
capitalization
stocks.
The
Index’s
initial
universe
of
eligible
securities
includes
common
stock,
tracking
stock
and
shares
of
real
estate
investment
trusts
(REITs)
issued
by
U.S.
companies
and
traded
on
the
New
York
Stock
Exchange,
NASDAQ
or
NYSE
Market
LLC.
At
each
reconstitution,
the
initial
universe
is
screened
to
exclude
securities
based
on
the
number
of
non-
trading
days
in
the
preceding
quarter
and
trading
volume
during
the
preceding
six-month
period.
Securities
with
more
than
10
non-trading
days
in
the
preceding
quarter,
or
that
have
a
bottom
25%
liquidity
score,
as
ranked
by
the
Index
provider
based
on
the
preceding
six-month
trading
volume,
are
excluded.
The
remaining
securities
comprise
the
investable
universe.
The
Index
is
composed
of
the
securities
of
companies
whose
cumulative
total
market
capitalization
represents
approximately
the
top
70%
of
the
remaining
securities
comprising
the
investable
universe.
The
Index
rebalances
quarterly
in
March,
June,
September
and
December,
and
reconstitutes
semi-annually
in
June
and
December.
Equities
Decline
as
Inflation
Mounts
Investor
sentiment
started
the
reporting
period
on
a
positive
note,
with
equities
supported
by
economic
recovery
and
the
widespread
availability
of
COVID-19
vaccines
in
the
face
of
the
ongoing
pandemic.
U.S.
large-cap
stocks
rose,
outpacing
small-
and
mid-
cap
shares
as
businesses
reopened,
and
consumer
spending
remained
strong,
while
growth-oriented
stocks
outperformed
their
value-oriented
counterparts
by
a
small
margin.
Swiftly
rising
inflation
began
to
put
a
damper
on
markets
in
early
2022.
Commodity
prices
rose
in
response
to
wage
increases
and
pandemic-related
supply-chain
bottlenecks,
while
government
stimulus
and
accommodative
monetary
policies
continued
to
pressure
prices
as
well.
Inflationary
forces
were
exacerbated
by
the
Russian
invasion
of
Ukraine,
which
heightened
investor
uncertainty
and
drove
U.S.
equities
still
lower.
While
consumer
spending
and
corporate
earnings
remained
positive,
U.S.
GDP
(gross
domestic
product)
declined
in
the
first
quarter
of
the
new
year
in
response
to
supply
shortages,
international
trade
imbalances
and
rising
inflation.
Energy
costs,
already
at
elevated
levels,
spiked
higher,
along
with
prices
of
crucial
agricultural
chemicals
and
industrial
metals.
Value-oriented
shares
held
up
better
than
growth-oriented
equities
as
the
threat
of
rising
interest
rates
from
the
U.S.
Federal
Reserve
(the
“Fed”)
caused
investors
to
question
the
pace
of
future
growth
and
the
relative
value
of
future
earnings.
Financials
Lead
the
Equity
Market
Lower
Financials
stocks
led
the
market
lower
as
the
flattening
yield
curve
cut
into
banks’
net
interest
margins,
detracting
from
profits.
Consumer
discretionary
shares
suffered
due
to
rising
input
prices
and
seemingly
intractable
supply-chain
bottlenecks.
Communications
services
stocks
were
also
subject
to
supply-
chain
disruptions
and
discretionary
spending
constraints.
Information
technology
shares,
which
include
many
of
the
fastest
growing
companies
in
the
Index,
saw
declines
as
investors
discounted
future
earnings
as
measured
against
potentially
higher
interest
rates.
On
the
positive
side,
shares
in
oil
and
natural
gas
exploration
and
production
companies
soared
as
energy
prices
climbed.
Utility
stocks
generated
more
modest
gains
due
to
their
value-oriented
investment
proposition
and
the
ability
of
power
generators
to
insulate
profits
from
rising
input
expenses
by
hedging
energy
costs.
Consumer
staples,
another
value-oriented
sector
that
typically
tends
to
outperform
during
times
of
increasing
economic
stress
and
uncertainty,
gained
ground
as
well.
Replicating
the
Performance
of
the
Index
In
seeking
to
match
the
performance
of
the
Index,
we
do
not
actively
manage
investments
in
response
to
macroeconomic
trends.
We
note,
however,
that
rising
inflation
and
geopolitical
uncertainties
related
to
the
war
in
Ukraine
are
likely
to
pose
challenges
for
equity
investors
for
the
foreseeable
future.
Key
questions
facing
markets
remain:
How
aggressively
the
Fed
will
move
in
raising
interest
rates
to
combat
inflation,
how
quickly
they
will
reduce
their
Treasury
and
mortgage
portfolio,
and
how
effective
their
actions
will
prove
in
avoiding
a
recession
as
they
seek
to
engineer
a
soft
landing
for
the
economy.
While
challenges
clearly
loom
for
equity
markets,
we
also
see
opportunities,
supported
by
persistently
strong
levels
of
consumer
spending
and
corporate
profitability.
We
believe
that,
on
balance,
prospects
for
economic
growth
remain
positive,
if
modest,
for
the
rest
of
2022,
offering
potential
for
a
market
rebound.
As
always,
we
continue
to
monitor
factors
that
affect
the
fund’s
investments.
May
16,
2022
1
ETFs
trade
like
stocks,
are
subject
to
investment
risk,
including
possible
loss
of
principal.
ETF
shares
are
listed
on
an
exchange,
and
shares
are
generally
purchased
and
sold
in
the
4
DISCUSSION
OF
FUND
PERFORMANCE
(Unaudited)
(continued)
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
payment
of
brokerage
commissions.
2
Source:
Morningstar,
Inc.
The
Morningstar
®
US
Large
Cap
Index
SM
is
a
float-
adjusted,
market
capitalization-weighted
index
that
is
designed
to
measure
the
performance
of
U.S.
large-capitalization
stocks.
The
Index’s
initial
universe
of
eligible
securities
includes
common
stock,
tracking
stock
and
shares
of
real
estate
investment
trusts
(REITs)
issued
by
U.S.
companies
and
traded
on
the
New
York
Stock
Exchange,
NASDAQ
or
NYSE
Market
LLC.
At
each
reconstitution,
the
initial
universe
is
screened
to
exclude
securities
based
on
the
number
of
non-trading
days
in
the
preceding
quarter
and
trading
volume
during
the
preceding
six-month
period.
Securities
with
more
than
10
non-trading
days
in
the
preceding
quarter,
or
that
have
a
bottom
25%
liquidity
score,
as
ranked
by
the
index
provider
based
on
the
preceding
six-month
trading
volume,
are
excluded.
The
remaining
securities
comprise
the
investable
universe.
The
Index
is
composed
of
the
securities
of
companies
whose
cumulative
total
market
capitalization
represents
approximately
the
top
70%
of
the
remaining
securities
comprising
the
investable
universe.
Investors
cannot
invest
directly
in
any
index.
Investors
cannot
invest
directly
in
any
index.
3
Morningstar
®
a
service
mark
of
Morningstar,
Inc.
and
has
been
licensed
for
use
for
certain
purposes
by
the
Adviser.
The
fund
is
not
sponsored,
endorsed,
sold
or
promoted
by
Morningstar,
and
Morningstar
makes
no
representation
regarding
the
advisability
of
investing
in
the
fund.
Equities
are
subject
generally
to
market,
market
sector,
market
liquidity,
issuer
and
investment
style
risks,
among
other
factors,
to
varying
degrees,
all
of
which
are
more
fully
described
in
the
fund’s
prospectus.
Recent
market
risks
include
pandemic
risks
related
to
COVID-19.
The
effects
of
COVID-19
have
contributed
to
increased
volatility
in
global
markets
and
will
likely
affect
certain
countries,
companies,
industries
and
market
sectors
more
dramatically
than
others.
To
the
extent
the
fund
may
overweight
its
investments
in
certain
countries,
companies,
industries
or
market
sectors,
such
positions
will
increase
the
fund's
exposure
to
risk
of
loss
from
adverse
developments
affecting
those
countries,
companies,
industries
or
sectors.
5
DISCUSSION
OF
FUND
PERFORMANCE
(Unaudited)
For
the
period
November
1,
2021,
through
April
30,
2022,
as
provided
by
David
France,
CFA,
Todd
Frysinger,
CFA,
Vlasta
Sheremeta,
CFA,
Michael
Stoll,
and
Marlene
Walker
Smith,
Portfolio
Managers
employed
by
the
fund’s
sub-adviser,
Mellon
Investments
Corporation
Market
and
Fund
Performance
Overview
For
the
six-month
period
ending
April
30,
2022,
the
BNY
Mellon
US
Mid
Cap
Core
Equity
ETF
(the
“fund”)
produced
a
net
asset
value
total
return
of
−10.94%.
1
In
comparison,
the
Morningstar
®
US
Mid
Cap
Index
SM
(the
“Index”),
the
fund’s
benchmark,
returned
−11.05%
for
the
same
period.
2,3
Mid-cap
equities
lost
ground
during
the
reporting
period
under
pressure
from
increasing
inflation,
tightening
central
bank
policies
and
uncertainties
related
to
Russia’s
invasion
of
Ukraine.
The
difference
in
returns
between
the
fund
and
the
Index
resulted
primarily
from
transaction
costs
and
operating
expenses
that
are
not
reflected
in
Index
results.
The
Fund’s
Investment
Approach
The
fund
seeks
to
match
the
performance
of
the
Index.
To
pursue
its
goal,
the
fund
normally
invests
substantially
all
of
its
assets
in
equity
securities
comprising
the
Index.
The
Index
is
a
float-adjusted,
market
capitalization-weighted
index
designed
to
measure
the
performance
of
U.S.
medium-
capitalization
stocks.
The
Index’s
initial
universe
of
eligible
securities
includes
common
stock,
tracking
stock
and
shares
of
real
estate
investment
trusts
(REITs)
issued
by
U.S.
companies
and
traded
on
the
New
York
Stock
Exchange,
NASDAQ
or
NYSE
Market
LLC.
At
each
reconstitution,
the
initial
universe
is
screened
to
exclude
securities
based
on
the
number
of
non-
trading
days
in
the
preceding
quarter
and
trading
volume
during
the
preceding
six-month
period.
Securities
with
more
than
10
non-trading
days
in
the
preceding
quarter,
or
that
have
a
bottom
25%
liquidity
score,
as
ranked
by
the
Index
provider
based
on
the
preceding
six-month
trading
volume,
are
excluded.
The
remaining
securities
comprise
the
investable
universe.
The
Index
is
composed
of
the
securities
of
companies
whose
cumulative
total
market
capitalization
falls
approximately
between
the
bottom
10%-30%
of
the
remaining
securities
comprising
the
investable
universe.
The
Index
rebalances
quarterly
in
March,
June,
September
and
December,
and
reconstitutes
semi-annually
in
June
and
December.
Equities
Decline
as
Inflation
Mounts
Investor
sentiment
started
the
reporting
period
on
a
mixed
note.
Large-cap
stocks
rose
as
businesses
reopened,
and
consumer
spending
remained
strong,
while
small-
and
mid-cap
stocks
retreated,
buffeted
by
inflation
concerns.
Inflation-related
fears
deepened
in
early
2022
as
commodity
prices
rose
in
response
to
wage
increases
and
pandemic-related
supply-chain
bottlenecks.
Government
stimulus
and
accommodative
monetary
policies
further
added
to
inflationary
pressures.
Those
pressures
were
exacerbated
by
the
Russian
invasion
of
Ukraine,
which
heightened
investor
uncertainty
and
drove
equites
still
lower.
While
consumer
spending
and
corporate
earnings
remained
positive,
U.S.
GDP
(gross
domestic
product)
declined
in
the
first
quarter
of
the
new
year
in
response
to
supply
shortages,
international
trade
imbalances
and
rising
inflation.
Energy
costs,
already
at
elevated
levels,
spiked
higher,
along
with
prices
of
crucial
agricultural
chemicals
and
industrial
metals.
Value-
oriented
shares
held
up
better
than
growth-oriented
equities
as
the
threat
of
rising
interest
rates
from
the
U.S.
Federal
Reserve
(the
“Fed”)
caused
investors
to
question
the
pace
of
future
growth
and
the
relative
value
of
future
earnings.
Mid-cap
shares
outperformed
their
large-cap
counterparts
in
early
2022,
ending
the
full,
six-month
reporting
period
with
slightly
milder
losses,
as
measured
by
the
Index.
Financials
Lead
the
Equity
Market
Lower
Financials
stocks
led
the
market
lower
as
the
flattening
yield
curve
cut
into
banks’
net
interest
margins,
detracting
from
profits.
Consumer
discretionary
shares
suffered
due
to
rising
input
prices
and
seemingly
intractable
supply-chain
bottlenecks.
Communications
services
stocks
were
also
subject
to
supply-chain
disruptions
and
discretionary
spending
constraints.
Information
technology
shares,
which
include
many
of
the
fastest
growing
companies
in
the
Index,
saw
declines
as
investors
discounted
future
earnings
as
measured
against
potentially
higher
interest
rates.
Pricing
pressures
undermined
industrials,
while
health
care
stocks
saw
declining
revenues
from
pandemic-related
testing
and
immunization.
On
the
positive
side,
shares
in
oil
and
natural
gas
exploration
and
production
companies
soared
as
energy
prices
climbed.
Utility
stocks
generated
more
modest
gains
due
to
their
value-oriented
investment
proposition
and
the
ability
of
power
generators
to
insulate
profits
from
rising
input
expenses
by
hedging
energy
costs.
Materials
companies
were
beneficiaries
of
rising
commodity
prices.
Replicating
the
Performance
of
the
Index
In
seeking
to
match
the
performance
of
the
Index,
we
do
not
actively
manage
investments
in
response
to
macroeconomic
trends.
We
note,
however,
that
rising
inflation
and
geopolitical
uncertainties
related
to
the
war
in
Ukraine
are
likely
to
pose
challenges
for
equity
investors
for
the
foreseeable
future.
Key
questions
facing
markets
remain:
How
aggressively
the
Fed
will
move
in
raising
interest
rates
to
combat
inflation,
how
quickly
they
will
reduce
their
Treasury
and
mortgage
portfolio,
and
how
effective
their
actions
will
prove
in
avoiding
a
recession
as
they
seek
to
engineer
a
soft
landing
for
the
economy.
While
challenges
clearly
loom
for
equity
markets,
we
also
see
opportunities,
supported
by
persistently
strong
levels
of
consumer
spending
and
corporate
profitability.
We
believe
that,
on
balance,
prospects
for
economic
growth
remain
positive,
if
modest,
for
the
rest
of
2022,
offering
potential
for
a
market
rebound.
As
always,
we
continue
to
monitor
factors
that
affect
the
fund’s
investments.
May
16,
2022
1
ETFs
trade
like
stocks,
are
subject
to
investment
risk,
including
possible
loss
of
principal.
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
6
DISCUSSION
OF
FUND
PERFORMANCE
(Unaudited)
(continued)
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
payment
of
brokerage
commissions.
2
Source:
Morningstar,
Inc.
The
Morningstar
®
US
Mid
Cap
Index
SM
is
a
float-adjusted,
market
capitalization-weighted
index
that
is
designed
to
measure
the
performance
of
U.S.
mid-capitalization
stocks.
he
Index’s
initial
universe
of
eligible
securities
includes
common
stock,
tracking
stock
and
shares
of
real
estate
investment
trusts
(REITs)
issued
by
U.S.
companies
and
traded
on
the
New
York
Stock
Exchange,
NASDAQ
or
NYSE
Market
LLC.
At
each
reconstitution,
the
initial
universe
is
screened
to
exclude
securities
based
on
the
number
of
non-trading
days
in
the
preceding
quarter
and
trading
volume
during
the
preceding
six-month
period.
Securities
with
more
than
10
non-trading
days
in
the
preceding
quarter,
or
that
have
a
bottom
25%
liquidity
score,
as
ranked
by
the
index
provider
based
on
the
preceding
six-month
trading
volume,
are
excluded.
The
remaining
securities
comprise
the
investable
universe.
The
index
is
composed
of
the
securities
of
companies
whose
cumulative
total
market
capitalization
falls
approximately
between
the
bottom
10%-30%
of
the
remaining
securities
comprising
the
investable
universe.
Investors
cannot
invest
directly
in
any
index.
3
Morningstar
®
is
a
service
mark
of
Morningstar,
Inc.
and
has
been
licensed
for
use
for
certain
purposes
by
the
Adviser.
The
fund
is
not
sponsored,
endorsed,
sold
or
promoted
by
Morningstar,
and
Morningstar
makes
no
representation
regarding
the
advisability
of
investing
in
the
fund.
Equities
are
subject
generally
to
market,
market
sector,
market
liquidity,
issuer
and
investment
style
risks,
among
other
factors,
to
varying
degrees,
all
of
which
are
more
fully
described
in
the
fund’s
prospectus.
Recent
market
risks
include
pandemic
risks
related
to
COVID-19.
The
effects
of
COVID-19
have
contributed
to
increased
volatility
in
global
markets
and
will
likely
affect
certain
countries,
companies,
industries
and
market
sectors
more
dramatically
than
others.
To
the
extent
the
fund
may
overweight
its
investments
in
certain
countries,
companies,
industries
or
market
sectors,
such
positions
will
increase
the
fund’s
exposure
to
risk
of
loss
from
adverse
developments
affecting
those
countries,
companies,
industries
or
sectors.
The
prices
of
mid-cap
company
stocks
tend
to
be
more
volatile
than
the
prices
of
large
company
stocks,
mainly
because
these
companies
have
less
established
and
more
volatile
earnings
histories.
They
also
tend
to
be
less
liquid
than
larger
company
stocks.
7
DISCUSSION
OF
FUND
PERFORMANCE
(Unaudited)
For
the
period
November
1,
2021,
through
April
30,
2022,
as
provided
by
David
France,
CFA,
Todd
Frysinger,
CFA,
Vlasta
Sheremeta,
CFA,
Michael
Stoll,
and
Marlene
Walker
Smith,
Portfolio
Managers
employed
by
the
fund’s
sub-adviser,
Mellon
Investments
Corporation
Market
and
Fund
Performance
Overview
For
the
six-month
period
ending
April
30,
2022,
the
BNY
Mellon
US
Small
Cap
Core
Equity
ETF
(the
“fund”)
produced
a
net
asset
value
total
return
of
−15.03%.
1
In
comparison,
the
Morningstar
®
US
Small
Cap
Index
SM
(the
“Index”),
the
fund’s
benchmark,
produced
a
return
of
−15.04%
for
the
same
period.
2,3
Small-cap
equities
lost
ground
during
the
reporting
period
under
pressure
from
increasing
inflation,
tightening
central
bank
policies
and
uncertainties
related
to
Russia’s
invasion
of
Ukraine.
The
difference
in
returns
between
the
fund
and
the
Index
resulted
primarily
from
transaction
costs
and
operating
expenses
that
are
not
reflected
in
Index
results.
The
Fund’s
Investment
Approach
The
fund
seeks
to
match
the
performance
of
the
Index.
To
pursue
its
goal,
the
fund
normally
invests
substantially
all
of
its
assets
in
equity
securities
comprising
the
Index.
The
Index
is
a
float-adjusted,
market
capitalization-weighted
index
designed
to
measure
the
performance
of
U.S.
small-
capitalization
stocks.
The
index’s
initial
universe
of
eligible
securities
includes
common
stock,
tracking
stock
and
shares
of
real
estate
investment
trusts
(REITs)
issued
by
U.S.
companies
and
traded
on
the
New
York
Stock
Exchange,
NASDAQ
or
NYSE
Market
LLC.
At
each
reconstitution,
the
initial
universe
is
screened
to
exclude
securities
based
on
the
number
of
non-
trading
days
in
the
preceding
quarter
and
trading
volume
during
the
preceding
six-month
period.
Securities
with
more
than
10
non-trading
days
in
the
preceding
quarter,
or
that
have
a
bottom
25%
liquidity
score,
as
ranked
by
the
Index
provider
based
on
the
preceding
six-month
trading
volume,
are
excluded.
The
remaining
securities
comprise
the
investable
universe.
The
Index
is
composed
of
the
securities
of
companies
whose
cumulative
total
market
capitalization
represents
approximately
the
bottom
3%-10%
of
the
remaining
securities
comprising
the
investable
universe.
The
Index
rebalances
quarterly
in
March,
June,
September
and
December,
and
reconstitutes
semi-annually
in
June
and
December.
Equities
Decline
as
Inflation
Mounts
Investor
sentiment
started
the
reporting
period
on
a
mixed
note.
Large-cap
stocks
rose
as
businesses
reopened,
and
consumer
spending
remained
strong,
while
small-
and
mid-cap
stocks
retreated,
buffeted
by
inflation
concerns.
Inflation-related
fears
deepened
in
in
early
2022
as
commodity
prices
rose
in
response
to
wage
increases
and
pandemic-related
supply-chain
bottlenecks.
Government
stimulus
and
accommodative
monetary
policies
further
added
to
inflationary
pressures.
Those
pressures
were
exacerbated
by
the
Russian
invasion
of
Ukraine,
which
heightened
investor
uncertainty
and
drove
equites
still
lower.
While
consumer
spending
and
corporate
earnings
remained
positive,
U.S.
GDP
(gross
domestic
product)
declined
in
the
first
quarter
of
the
new
year
in
response
to
supply
shortages,
international
trade
imbalances
and
rising
inflation.
Energy
costs,
already
at
elevated
levels,
spiked
higher,
along
with
prices
of
crucial
agricultural
chemicals
and
industrial
metals.
Value-
oriented
shares
held
up
better
than
growth-oriented
equities
as
the
threat
of
rising
interest
rates
from
the
U.S.
Federal
Reserve
(the
“Fed”)
caused
investors
to
question
the
pace
of
future
growth
and
the
relative
value
of
future
earnings.
Small-cap
shares
significantly
underperformed
their
large-
and
mid-cap
counterparts,
as
measured
by
the
Index.
Information
Technology
Leads
the
Small-Cap
Market
Lower
The
information
technology
sector,
which
includes
many
of
the
fastest
growing
companies
in
the
Index,
saw
shares
decline
as
investors
discounted
future
earnings
as
measured
against
potentially
higher
interest
rates.
Consumer
discretionary
stocks
suffered
due
to
rising
input
prices
and
seemingly
intractable
supply-chain
bottlenecks.
Health
care
companies
saw
declining
revenues
from
pandemic-related
testing
and
immunization,
leading
to
lower
share
prices.
Financials
stocks
lost
ground
as
the
flattening
yield
curve
cut
into
banks’
net
interest
margins,
detracting
from
profits.
On
the
positive
side,
shares
in
oil
and
natural
gas
exploration
and
production
companies
soared
as
energy
prices
climbed.
Utility
stocks
generated
more
modest
gains
due
to
their
value-oriented
investment
proposition
and
the
ability
of
power
generators
to
insulate
profits
from
rising
input
expenses
by
hedging
energy
costs.
Consumer
staples,
another
value-oriented
sector
that
typically
tends
to
outperform
during
times
of
increasing
economic
stress
and
uncertainty,
gained
ground
as
well.
Replicating
the
Performance
of
the
Index
In
seeking
to
match
the
performance
of
the
Index,
we
do
not
actively
manage
investments
in
response
to
macroeconomic
trends.
We
note,
however,
that
rising
inflation
and
geopolitical
uncertainties
related
to
the
war
in
Ukraine
are
likely
to
pose
challenges
for
equity
investors
for
the
foreseeable
future.
Key
questions
facing
markets
remain:
How
aggressively
the
Fed
will
move
in
raising
interest
rates
to
combat
inflation,
how
quickly
they
will
reduce
their
Treasury
and
mortgage
portfolio,
and
how
effective
their
actions
will
prove
in
avoiding
a
recession
as
they
seek
to
engineer
a
soft
landing
for
the
economy.
While
challenges
clearly
loom
for
equity
markets,
we
also
see
opportunities,
supported
by
persistently
strong
levels
of
consumer
spending
and
corporate
profitability.
We
believe
that,
on
balance,
prospects
for
economic
growth
remain
positive,
if
modest,
for
the
rest
of
2022,
offering
potential
for
a
market
rebound.
As
always,
we
continue
to
monitor
factors
that
affect
the
fund’s
investments.
May
16,
2022
1
ETFs
trade
like
stocks,
are
subject
to
investment
risk,
including
possible
loss
of
principal.
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
8
DISCUSSION
OF
FUND
PERFORMANCE
(Unaudited)
(continued)
active
trading
market
for
an
ETF’s
shares
may
not
develop
or
be
maintained.
Buying
or
selling
ETF
shares
on
an
exchange
may
require
payment
of
brokerage
commissions.
2
Source:
Morningstar,
Inc.
The
Morningstar
®
US
Small
Cap
Index
SM
is
a
float-adjusted,
market
capitalization-weighted
index
that
is
designed
to
measure
the
performance
of
U.S.
small-capitalization
stocks.
he
Index’s
initial
universe
of
eligible
securities
includes
common
stock,
tracking
stock
and
shares
of
real
estate
investment
trusts
(REITs)
issued
by
U.S.
companies
and
traded
on
the
New
York
Stock
Exchange,
NASDAQ
or
NYSE
Market
LLC.
At
each
reconstitution,
the
initial
universe
is
screened
to
exclude
securities
based
on
the
number
of
non-trading
days
in
the
preceding
quarter
and
trading
volume
during
the
preceding
six-month
period.
Securities
with
more
than
10
non-trading
days
in
the
preceding
quarter,
or
that
have
a
bottom
25%
liquidity
score,
as
ranked
by
the
index
provider
based
on
the
preceding
six-month
trading
volume,
are
excluded.
The
remaining
securities
comprise
the
investable
universe.
The
Index
is
composed
of
the
securities
of
companies
whose
cumulative
total
market
capitalization
represents
approximately
the
bottom
3%-10%
of
the
remaining
securities
comprising
the
investable
universe.
Investors
cannot
invest
directly
in
any
index.
3
Morningstar®
is
a
service
mark
of
Morningstar,
Inc.
and
has
been
licensed
for
use
for
certain
purposes
by
the
Adviser.
The
fund
is
not
sponsored,
endorsed,
sold
or
promoted
by
Morningstar,
and
Morningstar
makes
no
representation
regarding
the
advisability
of
investing
in
the
fund.
Equities
are
subject
generally
to
market,
market
sector,
market
liquidity,
issuer
and
investment
style
risks,
among
other
factors,
to
varying
degrees,
all
of
which
are
more
fully
described
in
the
fund’s
prospectus.
Recent
market
risks
include
pandemic
risks
related
to
COVID-19.
The
effects
of
COVID-19
have
contributed
to
increased
volatility
in
global
markets
and
will
likely
affect
certain
countries,
companies,
industries
and
market
sectors
more
dramatically
than
others.
To
the
extent
the
fund
may
overweight
its
investments
in
certain
countries,
companies,
industries
or
market
sectors,
such
positions
will
increase
the
fund’s
exposure
to
risk
of
loss
from
adverse
developments
affecting
those
countries,
companies,
industries
or
sectors.
The
prices
of
small
company
stocks
tend
to
be
more
volatile
than
the
prices
of
large
company
stocks,
mainly
because
these
companies
have
less
established
and
more
volatile
earnings
histories.
They
also
tend
to
be
less
liquid
than
larger
company
stocks.
9
DISCUSSION
OF
FUND
PERFORMANCE
(Unaudited)
For
the
period
November
1,
2021,
through
April
30,
2022,
as
provided
by
David
France,
CFA,
Todd
Frysinger,
CFA,
Vlasta
Sheremeta,
CFA,
Michael
Stoll,
and
Marlene
Walker
Smith,
Portfolio
Managers
employed
by
the
fund’s
sub-adviser,
Mellon
Investments
Corporation
Market
and
Fund
Performance
Overview
For
the
six-month
period
ending
April
30,
2022,
the
BNY
Mellon
International
Equity
ETF
(the
“fund”)
produced
a
net
asset
value
total
return
of
−10.69%.
1
This
compares
with
a
−10.71%
total
return
for
the
fund’s
benchmark,
the
Morningstar
®
Developed
Markets
ex-US
Large
Cap
Index
SM
(the
“Index”),
during
the
same
period.
2,3
International
equities
lost
ground
during
the
reporting
period
under
pressure
from
increasing
inflation,
tightening
central
bank
policies
and
uncertainties
related
to
Russia’s
invasion
of
Ukraine.
The
difference
in
returns
between
the
fund
and
the
Index
resulted
primarily
from
transaction
costs
and
operating
expenses
that
are
not
reflected
in
Index
results.
The
Fund’s
Investment
Approach
The
fund
seeks
to
track
the
performance
of
the
Index.
To
pursue
its
goal,
the
fund
normally
invests
substantially
all
of
its
assets
in
equity
securities
comprising
the
Index,
depositary
receipts
based
on
securities
comprising
the
Index,
exchange-traded
funds
(ETFs)
providing
exposure
to
such
securities,
and
derivatives
with
economic
characteristics
similar
to
such
securities
or
the
Index.
The
fund’s
derivatives
investments
may
include
futures,
currency
forwards,
total
return
swaps
and
structured
notes.
The
Index
is
a
float-adjusted,
market
capitalization-weighted
index
designed
to
measure
the
performance
of
developed-
market
(excluding
the
United
States)
large-capitalization
stocks.
The
Index’s
initial
universe
of
eligible
securities
includes
equity
securities
(including
common
stock,
preferred
stock
and
shares
of
real
estate
investment
trusts
(REITs)),
issued
by
developed-
market
companies
(excluding
the
United
States)
and
traded
on
a
major
foreign
exchange.
At
each
reconstitution,
the
initial
universe
is
screened
to
exclude
securities
based
on
the
number
of
non-trading
days,
trading
volume
and
turnover
during
the
preceding
six-month
period,
and
market
capitalization.
The
Index
rebalances
quarterly
in
March,
June,
September
and
December,
and
reconstitutes
semi-annually
in
June
and
December.
Equities
Decline
as
Inflation
Mounts
International
developed-market
equities
encountered
challenging
conditions
from
the
start
of
the
reporting
period
as
inflationary
pressures
put
a
damper
on
markets.
Commodity
prices
rose
in
response
to
wage
increases
and
pandemic-related
supply-chain
bottlenecks,
while
government
stimulus
and
accommodative
monetary
policies
pressured
prices
as
well.
Central
banks
responded
with
increasingly
hawkish
rhetoric
regarding
interest-
rate
increases.
The
Bank
of
England
took
the
lead
in
December
2021
with
a
0.15%
increase
of
the
base
rate
to
0.25%.
That
same
month,
the
U.S.
Federal
Reserve
(the
“Fed”)
announced
its
intention
to
scale
back
its
asset
purchases
earlier
in
2022
than
previously
planned,
and
signaled
a
more
rapid
increase
in
interest
rates
in
the
coming
year.
Inflationary
forces
were
exacerbated
by
the
Russian
invasion
of
Ukraine
in
early
2022.
As
the
largest
land
war
in
Europe
since
World
War
II
continued
with
no
sign
of
an
early
resolution,
European
markets
began
contemplating
the
possibility
of
reduced
or
curtailed
oil
and
natural
gas
exports
from
Russia,
a
leading
source
of
energy
commodities
to
the
continent.
Energy
costs,
already
at
elevated
levels,
spiked
higher,
along
with
prices
of
crucial
agricultural
chemicals
and
industrial
metals.
Stocks
in
energy
producers
surged
along
with
oil
and
gas
prices,
while
some
other
sectors,
such
as
utilities
and
materials,
produced
more
modest
gains.
However,
growth-oriented
shares
suffered
as
the
threat
of
rising
interest
rates
caused
investors
to
question
the
pace
of
future
growth
and
the
relative
value
of
future
earnings.
Information
technology,
industrials
and
consumer
discretionary
stocks
experienced
the
most
significant
declines,
and
most
other
sectors
lost
ground
as
well.
Western
Europe
and
Asia
Underperform
the
UK
From
a
regional
perspective,
Western
European
stocks
broadly
lost
ground
due
to
the
region’s
proximity
to
the
Russia/Ukraine
conflict
and
its
dependence
on
Russian
energy
exports.
The
Netherlands,
Germany,
Italy
and
France
were
hit
particularly
hard
by
the
impact
of
the
war
on
their
domestic
economies.
Most
Asian
markets
declined
as
well.
Japan
saw
its
currency
decline
as
the
country
continued
to
experience
long-standing
structural
difficulties
caused
by
its
aging
population
and
anemic
growth
rate.
Hong
Kong
and
South
Korea
were
negatively
affected
by
the
prevailing,
global
inflationary
environment
and
by
their
proximity
and
economic
ties
to
China,
which
experienced
sharply
slowing
economic
growth
due
to
extensive
COVID-19
lockdowns
and
government
regulatory
crackdowns
on
several
key
industries.
Conversely,
the
UK
market
provided
the
developed
international
market’s
best
equity
returns,
generating
modest
gains.
UK
equities
benefited
from
the
nation’s
post-Brexit
economic
insulation
from
Europe
and
from
its
early
start
on
raising
interest
rates,
which
put
it
on
track
to
deal
more
effectively
with
global
inflationary
trends.
The
country’s
North
Sea
oil
resources
added
to
its
economic
resilience
at
a
time
of
rapidly
rising
petroleum
prices.
While
equity
markets
declined
mildly
in
Canada
and
Australia,
these
two
commodity-exporting
developed
nations
outperformed
most
of
the
world’s
other
developed
equity
markets.
Replicating
the
Performance
of
the
Index
In
seeking
to
match
the
performance
of
the
Index,
we
do
not
actively
manage
investments
in
response
to
macroeconomic
trends.
We
note,
however,
that
rising
inflation
and
geopolitical
uncertainties
related
to
the
war
in
Ukraine
are
likely
to
pose
challenges
for
equity
investors
for
the
foreseeable
future.
Key
questions
facing
markets
include
how
aggressively
central
banks
will
raise
interest
rates
to
combat
inflation,
and
how
effective
their
actions
will
prove
in
avoiding
a
global
recession.
European
10
DISCUSSION
OF
FUND
PERFORMANCE
(Unaudited)
(continued)
nations
confront
the
additional
problem
of
replacing
supplies
and
infrastructure
as
the
continent
moves
toward
a
full
energy
embargo
on
Russia,
posing
the
European
Central
Bank
with
a
particularly
difficult
challenge.
On
the
other
hand,
an
inflationary
environment
may
offer
a
hopeful
sign
for
Japan’s
stubbornly
persistent
deflationary
cycle,
while
commodity
exporters,
such
as
the
UK,
Canada
and
Australia
are
likely
to
continue
to
derive
benefits
from
high
commodity
prices.
Accordingly,
we
see
selective
opportunities
for
economic
growth
and
equity
appreciation
for
the
rest
of
2022.
As
always,
we
continue
to
monitor
factors
that
affect
the
fund’s
investments.
May
16,
2022
1
ETFs
trade
like
stocks,
are
subject
to
investment
risk,
including
possible
loss
of
principal.
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
payment
of
brokerage
commissions.
2
Source:
Morningstar
Inc.
The
Morningstar
®
Developed
Markets
ex-US
Large
Cap
Index
SM
is
a
float-adjusted,
market
capitalization-weighted
index
designed
to
measure
the
performance
of
developed-market
(excluding
the
United
States)
large-capitalization
stocks.
A
country
is
considered
developed
if
it
meets
the
following
criteria:
(i)
its
annual
per
capita
gross
national
income
falls
in
the
World
Bank’s
high-income
category
for
the
most
recent
three
years;
(ii)
it
has
not
had
any
broad-based
discriminatory
controls
against
non-domiciled
investors
for
the
most
recent
three
years;
and
(iii)
its
stock
markets
exhibit
the
following
characteristics:
transparency,
market
regulation,
operational
efficiency,
and
the
absence
of
broad-based
investment
restrictions.
The
Index’s
initial
universe
of
eligible
securities
includes
equity
securities
(including
common
stock,
preferred
stock
and
shares
of
real
estate
investment
trusts
(REITs)),
issued
by
developed-market
companies
(excluding
the
United
States)
and
traded
on
a
major
foreign
exchange.
At
each
reconstitution,
the
initial
universe
is
screened
to
exclude
securities
based
on
the
number
of
non-trading
days,
trading
volume
and
turnover
during
the
preceding
six-month
period,
and
market
capitalization.
Securities
not
previously
part
of
the
last
reconstitution
are
excluded
from
a
current
reconstitution
if
the
security
has
20
or
more
non-trading
days
during
the
last
six
months
or
their
trading
volume
and
turnover
ranks
in
the
bottom
25%
of
the
initial
universe
as
determined
by
the
Index
provider
based
on
the
preceding
six
months
of
trade
data.
Securities
previously
part
of
the
last
reconstitution
are
provided
a
one-time
buffer
and
not
excluded
unless
the
security
has
30
or
more
non-trading
days
(20
or
more
non-trading
days
after
the
one-time
buffer)
during
the
last
six
months
or
their
trading
volume
and
turnover
ranks
in
the
bottom
20%
(bottom
25%
after
the
one-time
buffer)
of
the
initial
universe
as
determined
by
the
Index
provider
based
on
the
preceding
six
months
of
trade
data.
Of
the
remaining
securities,
the
Index
includes
large
capitalization
securities
from
each
eligible
country,
targeting
the
top
70%
of
stocks
by
market
capitalization
from
each
eligible
country.
Investors
cannot
invest
directly
in
any
index.
3
Morningstar
®
is
a
service
mark
of
Morningstar,
Inc.
and
has
been
licensed
for
use
for
certain
purposes
by
the
Adviser.
The
fund
is
not
sponsored,
endorsed,
sold
or
promoted
by
Morningstar,
and
Morningstar
makes
no
representation
regarding
the
advisability
of
investing
in
the
fund.
Equities
are
subject
generally
to
market,
market
sector,
market
liquidity,
issuer
and
investment
style
risks,
among
other
factors,
to
varying
degrees,
all
of
which
are
more
fully
described
in
the
fund’s
prospectus.
Recent
market
risks
include
pandemic
risks
related
to
COVID-19.
The
effects
of
COVID-19
have
contributed
to
increased
volatility
in
global
markets
and
will
likely
affect
certain
countries,
companies,
industries
and
market
sectors
more
dramatically
than
others.
To
the
extent
the
fund
may
overweight
its
investments
in
certain
countries,
companies,
industries
or
market
sectors,
such
positions
will
increase
the
fund’s
exposure
to
risk
of
loss
from
adverse
developments
affecting
those
countries,
companies,
industries
or
sectors.
Currencies
are
subject
to
the