BNY Mellon Small Cap Stock Index Fund Class I (DISIX)

Overview

The focus of this fund is to mimic the performance of the S&P SmallCap 600® Index, an index composed of 600 small-cap companies. This objective is primarily achieved by fully investing in the stocks that comprise the index, thus closely tracking its performance. The investment strategy involves holding all 600 stocks in the same proportion as they are weighted in the index, ensuring that the fund's performance closely mirrors that of the S&P SmallCap 600® Index itself. However, there are instances where the fund might opt for a representative sampling strategy, holding shares in approximately 500 or more of the index's stocks, alongside investments in futures that are linked to the index's performance. This approach allows for flexibility in portfolio management and can use situations where full replication is not optimal or feasible. The ultimate goal is to provide investors with a means to gain exposure to the small-cap segment of the U.S. stock market, using a passive investment strategy that seeks to replicate the S&P SmallCap 600® Index's performance.

Products and Services

• Full Index Investment

In line with the fund's primary goal, it invests in all of the stocks that form the S&P SmallCap 600® Index. This direct investment approach aims at fully replicating the index's composition and performance, maintaining investments in all 600 constituent stocks in accordance with their index weightings.

• Representative Sampling

In situations where direct full investment may not be practical or optimal, the fund employs a representative sampling strategy. This involves investing in a subset of the index's stocks, generally around 500 or more, chosen to represent the broader index's performance characteristics. This strategy also includes investments in futures contracts whose performance is tied to the index, offering a flexible approach to achieving the fund's investment objectives while managing operational or market constraints.

• Futures Investment

The fund incorporates futures contracts that are linked to the performance of the S&P SmallCap 600® Index as part of its investment strategy. This allows the fund to adjust its exposure to the index more flexibly and efficiently, potentially enhancing the fund's ability to track the index closely or manage liquidity and risk more effectively.