This article was originally published on ETFTrends.com.
On Monday, January 12, 2026, BNY Investments expanded its ETF suite with the launch of five new fixed income funds. All five of these funds offer different actively managed approaches to fixed income exposure.
Three of the new BNY ETFs focus on providing distinct takes on gaining expanded municipal bond exposure. This includes the BNY Mellon Municipal Opportunities ETF (BMOP).
BMOP offers a differentiated approach for tapping into income and capital appreciation in the muni space. At least half of the fund’s net assets will be invested in investment-grade municipal bonds.
However, the remainder of the fund’s net assets may be opportunistically allocated to high-yield munis. Given the flexibility of BMOP’s active management, this approach lets the fund potentially tap into stronger yield opportunities than one would expect from a traditional municipal bond fund.
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Those who are looking for more of a short-duration focus for their munis may want to take a look at the BNY Mellon Municipal Short Duration ETF (BKMS). As one would expect from a short-duration bond fund, BKMS looks to invest in investment-grade bonds with a shorter maturity, with the fund seeking an average portfolio duration no longer than three years.
The BNY Mellon Municipal Intermediate ETF (BKMI) could help advisors and investors looking to build out longer-duration muni exposure. Much like BKMS, BKMI focuses on cultivating exposure to investment-grade municipal bonds. However, this fund instead looks to hold an average effective portfolio duration between three to eight years.
Looking beyond municipal bonds, there remains a growing need for actively managed takes on core bond funds. With the Federal Reserve’s interest rate regime in a bit of an uncertain position, it may be time to pivot towards a flexible active core fund with a more distinct strategy.
This includes funds like the BNY Mellon Core Plus ETF (BCPL). As one would expect from a core plus bond fund, BCPL branches out from traditional core bond exposure with a more diversified approach.
While the fund can invest the bulk of its net assets in investment-grade bonds, BCPL can allocate up to 25% of its assets towards high-yield bonds. This high-yield allocation, bolstered by the fund’s active flexibility, can help BCPL maintain more diversified bond exposure while chasing higher income opportunities.
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