How a 1993 Idea Changed Investing

Exchange-traded funds (ETFs) have been around for over three decades. Objectively, they’ve come way farther than investors and advisors ever expected back at launch. When the first ETFs were introduced in the U.S. back in 1993, the wrapper was seen as little more than a means for passive access to well-known indices. Nowadays, ETFs span everything from active management to thematic investing, offering low-cost, diversified market exposure across thousands of funds.

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Recently, the team at BNY Investments released an article examining the rapid evolution of the ETF industry, noting that despite there being only 2,487 ETFs worldwide in 2010, the market has grown exponentially over the past 15 years.

“The appeal of ETFs extends outside U.S. borders,” the BNY Investments report added. “By the end of 2025, there were approximately 14,000 ETFs trading around the world, with assets rising sharply. Over the past 10 years, global ETF assets have grown almost sixfold, from $3.4 trillion to over $19.1 trillion.”

Advantages of the ETF Wrapper

As BNY Investments points out, one reason that ETFs have enjoyed widespread appeal is their wide variety of use cases, making them appropriate for just about any investor. Broadly speaking, the ETF wrapper makes it easy for investors and advisors to access a variety of indices, asset classes, and investment approaches as they work towards just about any investing goal.

The article highlights several specific benefits that have helped ETFs stand out over the years. These features include liquidity, transparency, and tax efficiency, which are the most common benefits that drive the appeal of the ETF wrapper. Additionally, ETFs can help investors make nimble, tactical allocations while generally featuring lower transaction costs compared with comparable mutual funds.

Towards the tail end of the article, BNY Investments included a timeline showcasing key accomplishments for both the ETF industry and its ETF suite. One noticeable accomplishment for BNY Investments came in 2022, when the BNY Mellon US Large Cap Core Equity ETF (BKLC) made history as the first BNY ETF to pass $500 million in assets under management.

How BKLC Redefined Core Large-Cap Exposure

Nowadays, BKLC’s AUM sits far above the $500 million goal post. As of May 5, 2026, the fund has $5.3 billion in AUM. Given that the fund’s inception date was April 7, 2020, BKLC has made significant progress in a crowded field in a relatively short period.

Examining BKLC’s approach to core large-cap investing can help illuminate how the fund is seeing such resonating interest from the investment community. To start, BKLC’s goal is to provide similar results to the Solactive GBS United States 500 Index TR. This index aims to track the 500 largest U.S. companies, weighing them each by free-float market cap.

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Crucially, BKLC has no management fee. In the crowded space of core large-cap passive ETFs, offering a compelling strategy with a 0.00% expense ratio is bound to attract more investor attention.

Most importantly, BKLC is simply putting up strong long-term results. As of April 30, 2026, the fund’s NAV has risen 31.12% over the last 12 months.

BKLC undeniably showcases the advantages of the ETF wrapper. Large-cap core U.S. equity funds are likely among the most crowded fields for exchange-traded funds. Despite that, BKLC offers a distinct approach that has seen significant success with the greater investment community in recent years.

New, innovative funds come online on a near-daily basis. The best is likely yet to come for the ETF wrapper.

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