Quick Read
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BKLC surged 40% from April to December 2025 and outperformed SPY by 1.2% year-to-date.
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The top three holdings (NVIDIA, Apple, Microsoft) represent nearly 20% of the portfolio.
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BKLC charges 0% in fees versus VOO's 0.03% but has only $5B in assets compared to VOO's $1.5T.
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A recent study identified one single habit that doubled Americans' retirement savings and moved retirement from dream, to reality. Read more here .
When a large-cap ETF with zero fees climbs 40% in eight months, investors notice. The BNY Mellon US Large Cap Core Equity ETF ( NYSEARCA:BKLC ) surged from $94 per share in early April 2025 to around $131.70 today with few significant pullbacks.
What BKLC Actually Does
BKLC tracks the Solactive GBS United States 500 Index, a market-cap-weighted index of the 500 largest U.S. companies. It holds 506 stocks with heavy concentration in mega-cap technology. NVIDIA represents 7.3% of the portfolio, Apple 6.6%, and Microsoft 6.0%. Information technology accounts for 34% of assets, followed by financials at 12% and communication services at 11%.
The ETF delivers appreciation and dividend income from large U.S. companies, weighted by market value. No derivatives, no leverage, no options strategies. It's passive indexing with a 0.00% expense ratio, which BNY Mellon uses as a competitive wedge against VOO and SPY.
Performance That Edges Out the Competition
Over the past year, BKLC returned 15.5% compared to SPY's 14.3%. Year-to-date through December 29, 2025, BKLC gained 18.5% versus SPY's 17.2%. Since inception in April 2020, BKLC returned 100% compared to SPY's 87%.
The April-to-December rally was driven by resilient earnings, AI enthusiasm, and concentrated strength in mega-cap technology. BKLC's slightly higher allocation to top tech names gave it a small edge.
The Tradeoffs You Accept
You're accepting concentration risk. The top 10 holdings represent 31% of the portfolio, and the top three account for nearly 20%. If NVIDIA, Apple, or Microsoft stumble, this ETF will feel it immediately.
BKLC has $5 billion in assets compared to VOO's $1.5 trillion. Liquidity is adequate for most retail investors, but institutional players may find tighter spreads elsewhere. The zero expense ratio competes against VOO's 0.03% fee, a difference of $30 annually on a $100,000 investment.
BKLC's track record is short. Launched in 2020, it hasn't been tested through a prolonged bear market or sustained value outperformance. Its methodology tilts slightly more toward growth than the S&P 500.
This infographic details the BNY Mellon Zero-Fee Large Cap ETF (BKLC), outlining its passive indexing strategy, strong recent performance, and associated risks like heavy tech concentration.
Who Should Avoid This ETF
If you're looking for diversification beyond U.S. large caps, BKLC offers none. It's 100% domestic, 100% large-cap, and heavily tilted toward technology.
Income-focused investors should reconsider. BKLC's dividend yield is 1.1%, paid quarterly. If you're building a portfolio around consistent income, there are better options.
Consider VOO as an Alternative
The Vanguard S&P 500 ETF ( NYSEARCA:VOO ) serves the same role as BKLC but with deeper liquidity and a longer track record. VOO has $1.5 trillion in assets compared to BKLC's $5 billion, which translates to tighter bid-ask spreads and more reliable execution for larger trades. Its 0.03% expense ratio costs just $3 per year on a $10,000 investment.
VOO tracks the actual S&P 500, not a similar index, giving you the exact benchmark most institutional investors use. If you value liquidity and a 15-year performance history over saving $30 annually, VOO is the safer choice.
BKLC works well as a core holding for cost-conscious investors comfortable with tech-heavy exposure, but its short history and smaller asset base mean you're trading proven scale for a zero expense ratio.
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