The Federal Reserve was already facing the perils of sticky inflation before tensions escalated to a boiling point in the Middle East.
When war broke out, the Strait of Hormuz effectively closed down, greatly limiting the ability of oil tankers to pass through the critical region. This has unfortunately led to rising oil prices, with the average price for a gallon of gas in the U.S. passing the $4 threshold on the last day of March.
Rising oil and gas prices will only exacerbate the ongoing inflationary pressures the country is already facing. To make matters worse, should inflation trend upward, investors will see their purchasing power decrease in turn.
As such, now may be a very good time to adopt an investment strategy that offers a strong income stream. By doing so, investors can use this income to potentially offset a more perilous inflationary environment.
BEDY: Building Compelling Income & Returns Through Equity Exposure
One such fund is the BNY Mellon Dividend and Income ETF (BEDY). BEDY is an actively managed fund from BNY Investments that offers a compelling blend of income and capital appreciation through its disciplined investment approach.
To start, it’s worth noting just how much yield BEDY has been recently offering. As of March 31, 2026, BEDY has a 30-day subsidized yield of 11.29%. This kind of dynamic yield far outpaces that of a traditional fixed income strategy, and can help investors stay ahead of any inflationary price pressures.
Better yet, BEDY’s yield comes with compelling returns. Year to date, BEDY’s NAV has risen 6.80%, as of April 22, 2026.
How BEDY Builds Exposure to Equity Income
The key to BEDY’s strong progress report comes from its approach to equity income. BEDY’s portfolio team can invest in a variety of equity and equity-related securities that provide income, such as dividend-paying stocks, equity-linked notes, and other instruments.
When it comes to selecting securities for portfolio inclusion, BEDY selects stocks using a mix of computer modeling and fundamental analysis, while keeping risk management front of mind. First, the fund’s portfolio team employs the proprietary computer model to choose and rank stocks based on intrinsic value, sound business fundamentals, positive business momentum, income potential, and more. From there, the portfolio managers will evaluate potential securities based on their fundamentals, while diversifying the portfolio across sectors and companies to manage risk.
A further source of diversified income can come through the portfolio’s equity-linked note allocations. Up to 10% of BEDY’s net assets can be invested in ELNs, which can help bolster the fund’s income potential.
Taken together, BEDY’s approach to equity income can help investors bolster their portfolios with a potent income stream while remaining engaged in the equity market. Given that the threat of inflation is unlikely to go away any time soon, opting for a fund with a strong track record like this may well offer the best path forward.
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