Zero-Cost ETF War Sees BNY Mellon Unleash First No-Fee Bond Fund

  • New York-based firm launches two funds without any fees
  • ETF providers have cut costs in highly-competitive industry

People enter a Bank of New York Mellon Corp. office building in New York, U.S.

Photographer: Gabriela Bhaskar/Bloomberg
Lock
This article is for subscribers only.

The rush to zero costs in the competitive ETF industry is showing no signs of abating, with BNY Mellon escalating that perilous war.

The New York-based firm is launching the BNY Mellon Core Bond ETF, or BKAG, the first ever no-fee U.S. fixed-income fund, according to a statementBloomberg Terminal on Thursday. Another fund tracking big American companies will also have no cost: the BNY Mellon US Large Cap Core Equity ETF, or BKLC.