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Portfolio > ETFs > Bond

AllianceBernstein Launches Its First Active ETFs

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AllianceBernstein Holding L.P. (NYSE: AB) on Wednesday launched its first active ETFs, the AB Ultra Short Income ETF (NYSE: YEAR) and the AB Tax-Aware Short Duration Municipal ETF (NYSE: TAFI).

The AB Ultra Short Income ETF seeks to provide current income, consistent with capital preservation, and to deliver higher yields compared with cash or cashlike investments. This ETF comes with a 0.25% expense ratio, according to AB’s website.

The AB Tax-Aware Short Duration Municipal ETF seeks to provide relative stability of principal and a moderate after-tax return and income by offering municipal bond investors shorter-maturity bonds and opportunistic exposure to Treasurys and taxable bonds as a complement to their core allocations. It has a 0.27% expense ratio.

The two vehicles are “our first of many active ETFs,” AB President and CEO Seth Bernstein said in a statement.

AB said it prioritized fixed income solutions for its first launch, given client preference and needs on short-duration yield-generating solutions in the current rising-rate environment.

“ETFs have evolved into an important execution tool across asset classes, and amidst the recent market volatility, we feel it is critical to offer our clients diversity and efficiency,” said Noel Archard, AB’s global head of ETFs and portfolio solutions.

“Our first set of actively managed fixed-income ETFs draws on AB’s deep research and expertise across both taxable and non-taxable fixed income. We will build upon this momentum to deliver an ETF lineup over time, which will reflect AB’s longstanding commitment to research excellence, investment discipline, and our clients.”

The global trading firm Jane Street will be the lead market maker on both products.

(Image: Chris Nicholls/ALM)


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