AllianceBernstein unveils three active equity ETFs

Mar 24th, 2023 | By | Category: Equities

Global asset manager AllianceBernstein has launched three new actively managed equity ETFs providing exposure to low volatility, high dividend, and disruptive innovation investment strategies.

Noel Archard, Global Head of ETFs and Portfolio Solutions at AllianceBernstein

Noel Archard, Global Head of ETFs and Portfolio Solutions at AllianceBernstein.

Listed on NYSE Arca, the new funds are the AB US Low Volatility Equity ETF (LOWV US), the AB US High Dividend ETF (HIDV US), and the AB Disruptors ETF (FWD US).

The AB US Low Volatility Equity ETF holds between 60 and 80 stocks selected from the US large- and mid-cap segments. Utilizing fundamental and quantitative research, the fund seeks to invest in high-quality, stable businesses trading at attractive prices. Its expense ratio is 0.48%.

The AB US High Dividend ETF also invests in US-listed large and mid-cap companies, selecting dividend-paying firms that are deemed to also have the potential for long-term capital appreciation based on balance sheet strength, industry leadership, and share price momentum, among other factors. The fund may also invest partially in non-dividend paying companies. Its expense ratio is 0.45%.

The AB Disruptors ETF holds between 80 and 120 stocks of any market capitalization that have been selected from developed or emerging markets worldwide. The strategy seeks out companies that are aligned with long-term secular growth trends and are innovative market leaders who are poised to disrupt their respective industries. Eligible firms should reflect durable high-growth opportunities with proven business models and a clear path to potential profitability. The fund’s expense ratio is 0.65%.

The three new listings add to the two actively managed short-duration fixed income strategies that AllianceBernstein unveiled in September of last year during the firm’s ETF debut. The AB Ultra-Short Income ETF (YEAR US) and AB Tax-Aware Short Duration Municipal ETF (TAFI US), which come with expense ratios of 0.25% and 0.27%, respectively, have collectively gathered $450 million in assets since launch.

Commenting on the new listings, Noel Archard, Global Head of ETFs and Portfolio Solutions at AllianceBernstein, said: “Drawing upon the success of our inaugural ETFs launched in 2022, this new suite of equity ETFs demonstrates our commitment to delivering best-in-class investment strategies in adaptable and accessible vehicles for all investors. Our clients look to us for unique capital market insights across market cycles, and to introduce products that allow them to best manage their portfolios across evergreen investment themes like growth or income generation.”

Onur Erzan, Head of Global Client Group and Private Wealth at AllianceBernstein, added: “AB and Bernstein Private Wealth Management are focused on providing differentiated investment capabilities and wealth planning services to help clients manage their portfolios across market cycles. The launch of these new ETFs, led by our veteran investment teams, furthers our commitment to customizing investment solutions for different clients and their varying needs.”

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