Plenty of headlines were written as the One Big Beautiful Big Bill Act (OBBBA) made its way through U.S. Congressional debates earlier this year. For the advisor community, many were likely wondering how the OBBBA would affect their portfolio strategies. To be more specific, which investing themes could be boosted by this U.S. policy maneuver?
The BNY Investments team recently examined the investment opportunities that could come from the OBBBA. In particular, the BNY Investments team theorizes that the OBBBA could prove to be highly fortuitous for U.S. value strategies.
This is due to how the OBBBA includes a multitude of business benefits that can operate as significant value discounts, according to the BNY Investments report. The report cites a few provisions in particular, including the return of 100% first-year bonus depreciation, and expensing for domestic R&D, among others. As the report highlighted, the bonus depreciation and R&D expensing alone represent potential deep discounts for value investors to take advantage of.
That’s not all that these provisions bring to the table, either. The BNY report explained that these provisions could help lower tax obligations, bolster cash flow, accelerate acquisition timing, and more.
“These dynamics may unlock billions in free cash flow in the upcoming year, encouraging domestic capital investment and innovation with excess capital available for deployment,” the BNY Investments report added.
Considering BKDV’s Take on Value Investing
For those looking to amplify their U.S. value exposure, the BNY Mellon Dynamic Value ETF (BKDV) could help. BKDV is an actively managed fund that provides deep capital appreciation potential through a bottom-up stock selection process.
BKDV goes about choosing companies through the application of both quantitative and fundamental research. This process seeks to focus on three principal factors: intrinsic value, sound business fundamentals, and positive business momentum.
BKDV’s strategy could put the fund in a good position to benefit from OBBBA policy going forward. The fund’s fundamental focus and active management can help it nimbly locate companies that are benefiting from the bill’s provisions in real time.
Meanwhile, BKDV is still providing good results this year. As of December 8, 2025, the fund’s NAV has risen 16.35% year-to-date.
For more news, information, and strategy, visit the Portfolio Strategies Content Hub.
