AllianceBernstein launches active ETFs
AllianceBernstein Holding L.P. ( NYSE: AB) and AllianceBernstein L.P., have announced the launch of its first set of active ETFs on the New York Stock Exchange (NYSE): the AB Ultra Short Income ETF ( NYSE: YEAR) and the AB Tax-Aware Short Duration Municipal ETF ( NYSE: TAFI).
The firm writes that global trading firm Jane Street will be the Lead Market Maker on both products and will bring extensive industry experience and pricing expertise to AB's ETFs.
"For over 50 years, AB has remained committed to innovation and growth, continuously providing investment solutions and capabilities to help meet expanding client needs," says Seth Bernstein, President and Chief Executive Officer at AB. "Launching our first of many active ETFs is a milestone in our firm's history and a testament to not only our talented team of professionals, but the thoughtfulness of our unique investment strategy and dedication to our clients."
The firm writes that launching active ETFs is a natural extension of AB's existing capabilities and expertise as the firm seeks to bring products to market that are both functional and practical for investors. AB has prioritized fixed income solutions for the firm's first launch, given client preference and needs on short duration yield generating solutions in the current rising rate environment. The firm's ETFs will make AB investment solutions even more accessible to both existing and new clients.
AB's first active ETFs are: ( NYSE: YEAR): The AB Ultra Short Income ETF, an actively managed ETF, seeks to provide current income, consistent with preservation of capital. The ETF aims to deliver higher levels of yield relative to cash or cash-like investments, while aiming for capital preservation in all market cycles.
( NYSE: TAFI): The AB Tax-Aware Short Duration Municipal ETF, an actively managed municipal bond strategy, seeks to provide relative stability of principal and a moderate rate of after-tax return and income. The ETF offers municipal bond investors a distinct complement to their core allocations providing the opportunity to help maximize after-tax income and returns using shorter maturity bonds and opportunistic exposure to treasuries and taxable bonds.
"Today's ETF launch is an exciting achievement for our firm," says Noel Archard, Global Head of ETFs and Portfolio Solutions at AB. "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. 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 line-up over time, which will reflect AB's longstanding commitment to research excellence, investment discipline, and our clients."
Earlier this year, the firm announced Noel Archard, CFA, joined the firm as Global Head of ETFs and Portfolio Solutions. AB has continued to bolster its ETF efforts with the addition of Anita Rausch joining the firm as Global Head of ETF Capital Markets, Julie Gunts, an AB veteran leading Global Strategy & Partnerships, Brett Sheely as Head of ETF Specialists, and Jason Thalmann as ETF Operations Manager. The firm writes that the Global ETF team at AB has a combined average of two decades of experience in the ETF and financial services industry. While AB is starting with active fixed income ETFs in the US, its intent over time is to expand globally among multiple asset classes.