AB ETFs

Pursue Your Income Goals with Actively Managed ETFs

 
 

The Importance of Being Active in High Yield 

Navigate volatility, seize opportunities, and build resilient fixed-income portfolios.
  

We believe active high-yield strategies are equipped with the flexibility to adjust to market shifts, uncover value, and manage risk more effectively than passive strategies. 
 

Are you maximizing your fixed income potential? 

Get Expert Income Advice

Connect with our team to see firsthand how active high-yield investing can elevate your clients’ fixed income portfolios. 

 
ETFs
 
 

Active Management is a
Competitive Advantage

Choose an active strategy aligned with your investment goals..

 
 

AB’s High-Yield ETFs: Smarter Income Solutions

AB’s Short Duration High Yield ETF (NYSE: SYFI) and AB High Yield ETF (NYSE: HYFI) seek to provide attractive income while aiming for less volatility than traditional high-yield approaches. Our active strategies are designed to capitalize on opportunities in the U.S. high-yield bond market.

 
Fixed Income
 

Our Fixed Income Team is Commited to Delivering Better Investment Outcomes for Our Clients.

 

Broad Fixed-Income Sector Capabilities

Shared Insights That Drive Alpha

Repeatable and Scallable Process

Efficiency of the Investment Process

 

50+ Years of Fixed Income Leadership

Decades of experience navigating global fixed income markets.

 

 

10 Key Global Hubs

A truly international team with deep local insights across major financial centers.

 

$318+ Billion in Fixed Income AUM

Serving a diverse investor base, from individuals to large institutions.

 

 

Cutting-Edge AB Technology

Enhancing portfolio and empowering smarter investment decisions.

 

187 Investment Experts Driving Results
A multidisciplinary team spanning technology, research, portfolio management to optimize investment outcomes.

 
 

Stay informed on Active High-Yield Investing

 
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Embrace the Active Advantage

Empower your clients’ portfolios with AB’s actively managed investment solutions offering high income, stability, and adaptability in a shifting market.

 

Why Invest in Active Fixed Income ETFs?

Fixed income plays an important role in any well-diversified portfolio, providing the potential for income generation and risk mitigation.  AB’s actively managed bond ETFs have the potential to provide even more benefits: 

  1. Generate More Income
    Bonds are back. Take advantage of higher yields today with AB ETFs. Our funds are designed to align with your investment goals, no matter your risk tolerance.

  2. Active Human Approach
    AB’s portfolio managers combine research with a disciplined investment process to select bonds that have the potential to benefit most in today’s market while managing for unintended risks. 

  3. A Better Product Structure
    ETFs have advantageous characteristics that provide for greater tax efficiency, liquidity and flexibility than individual bond holdings and mutual funds. 

 
 

Featured Fixed Income ETFs

Our Fixed Income Team is Commited to Delivering Better Investment Outcomes for Our Clients.

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  • Taxable
  • Municipal
 
 

Yield to worst is a measure of the lowest possible yield that can be received on a bond that fully operates within the terms of its contract without defaulting.

Duration can measure the sensitivity of a bond’s or fixed-income portfolio’s price to changes in interest rates.

The Bloomberg US Corporate High Yield Bond Index measures the USD-denominated, high-yield, fixed-rate corporate bond market. Securities are classified as high yield if the middle rating of Moody’s, Fitch and S&P is Ba1/BB+/BB+ or below.

The Bloomberg US High Yield 1-5 Year Index measures the USD-denominated, high-yield, fixed-rate bond market, rated BB or B by S&P or the equivalent rating by Fitch or Moody's. The Bloomberg U.S. High Yield (1-5 Year) (BB/B) Index measures that part of the market with maturities of five years or less.

Risks to Consider

Investing in ETFs involves risk and there is no guarantee of principal.

Investors should consider the investment objectives, risks, charges and expenses of the Fund/Portfolio carefully before investing. For copies of our prospectus or summary prospectus, which contain this and other information, visit our Literature Center or contact your AB representative. Please read the prospectus and/or summary prospectus carefully before investing.

Shares of the ETF may be bought or sold throughout the day at their market price on the exchange on which they are listed. The market price of an ETF’s shares may be at, above or below the ETF’s net asset value (“NAV”) and will fluctuate with changes in the NAV and with supply and demand in the market for the shares. Shares of the ETF may only be redeemed directly with the ETF at NAV by Authorized Participants, in very large creation units. There can be no guarantee that an active trading market for the Fund’s shares will develop or be maintained, or that their listing will continue or remain unchanged. Buying or selling the Fund’s shares on an exchange may require the payment of brokerage commissions, and frequent trading may incur brokerage costs that detract significantly from investment returns.

Below-Investment-Grade Securities Risk: Investments in fixed-income securities with lower ratings (a.k.a. junk bonds) are subject to a higher probability that an issuer will default or fail to meet its payment obligations. These securities may be subject to greater price volatility due to such factors as specific municipal or corporate developments and negative performance of the junk bond market generally and may be more difficult to trade than other types of securities.
Credit Risk: A bond’s credit rating reflects the issuer’s ability to make timely payments of interest or principal—the lower the rating, the higher the risk of default. If the issuer’s financial strength deteriorates, the issuer’s rating may be lowered and the bond’s value may decline.
Derivatives Risk: Derivatives may be more sensitive to changes in market conditions and may amplify risks.
Foreign (Non-US) Investment Risk: Investments in securities of non-US issuers may involve more risk than those of US issuers. These securities may fluctuate more widely in price and may be more difficult to trade than domestic securities due to adverse market, economic, political, regulatory or other factors.
Inflation Risk: Prices for goods and services tend to rise over time, which may erode the purchasing power of investments.
Investment Securities Risk: To the extent the Fund invests in other funds, shareholders will bear layers of asset-based expenses, which could reduce returns.
Leverage Risk: To the extent the Fund uses leveraging techniques, its NAV may be more volatile because leverage tends to exaggerate the effect of changes in interest rates and any increase or decrease in the value of the Fund’s investments.
Management Risk: The Fund is subject to management risk because it is an actively-managed ETF. The Adviser will apply its investment techniques and risk analyses in making investment decisions, but there is no guarantee that its techniques will produce the intended results. Some of these techniques may incorporate, or rely upon, quantitative models, but there is no guarantee that these models will generate accurate forecasts, reduce risk or otherwise perform as expected.
Market Risk: The market values of the portfolio’s holdings rise and fall from day to day, so investments may lose value.

AllianceBernstein L.P. (AB) is the investment Advisor for the Fund.
Distributed by Foreside Fund Services, LLC. Foreside is not affiliated with AllianceBernstein.

Prior to close of business on 5/12/2023, the Fund operated as an open-end mutual fund. The Fund has an identical investment objective and substantially similar investment strategies and investment risk profiles to those of the predecessor mutual fund. The NAV returns include returns of the Advisor Share Class of the predecessor mutual fund prior to the Fund’s commencement of operations. Performance for the Fund’s shares has not been adjusted to reflect the Fund shares’ lower expenses compared to those of the predecessor mutual fund’s Advisor Share Class. Had the predecessor fund been structured as an exchange-traded fund, its performance may have differed. Please refer to the current prospectus for further information. Performance prior to 7/27/16 reflects the AB High Yield Portfolio, a series of AB Pooling Portfolios that was reorganized into the Fund and is the surviving entity in the reorganization. Performance for those periods would have been lower if such an accounting survivor had operated at the Fund’s current expense levels. Prior to 4/30/21, the Fund was called the AB FlexFee High Yield Portfolio. Data prior to 4/30/21 relate to the AB FlexFee High Yield Portfolio.

 

Important Information

Investing in securities involves risk and there is no guarantee of principal.

Investors should consider the investment objectives, risks, charges, and expenses of the Fund/Portfolio carefully before investing. For copies of our prospectus or summary prospectus, which contain this and other information, visit us online at www.alliancebernstein.com or contact your AB representative. Please read the prospectus and/or summary prospectus carefully before investing.

Shares of the ETF may be bought or sold throughout the day at their market price on the exchange on which they are listed. The market price of an ETF's shares may be at, above or below the ETF’s net asset value ("NAV") and will fluctuate with changes in the NAV as well as supply and demand in the market for the shares. Shares of the ETF may only be redeemed directly with the ETF at NAV by Authorized Participants, in very large creation units. There can be no guarantee that an active trading market for the Fund’s shares will develop or be maintained, or that their listing will continue or remain unchanged. Buying or selling the Fund’s shares on an exchange may require the payment of brokerage commissions and frequent trading may incur brokerage costs that detract significantly from investment returns.

Active Trading Risk: The Fund expects to engage in active and frequent trading, which will increase the portfolio turnover rate. A higher portfolio turnover increases transaction costs and may negatively affect the Fund’s return. Below-Investment-Grade Securities Risk: Investments in fixed-income securities with lower ratings (commonly known as “junk bonds”) tend to have a higher probability that an issuer will default or fail to meet its payment obligations. Bond Risk: The Fund is subject to the same risks as the underlying bonds in the portfolio such as credit, prepayment, call and interest rate risk. As interest rates rise the value of bond prices will decline. Credit Risk: A bond’s credit rating reflects the issuer’s ability to make timely payments of interest or principal—the lower the rating, the higher the risk of default. If the issuer’s financial strength deteriorates, the issuer’s rating may be lowered, and the bond’s value may  decline.  Currency Risk: Fluctuations in currency exchange rates may negatively affect the value of the Fund’s investments or reduce its returns. Depositary Receipts Risk: Investing in depositary receipts involves risks that are similar to the risks of direct investments in foreign securities. Derivatives Risk: Derivatives may be more sensitive to changes in market conditions and may amplify risks.  Dividend Paying Securities Risk: The Fund invests in securities that pay dividends. There can be no assurance that dividends will be declared or paid on securities held by the Fund in the future, or that dividends will remain at current levels or increase. Emerging Market Risk: Investments in emerging market countries may have more risk because the markets are less developed and less liquid as well as being subject to increased economic, political, regulatory, or other uncertainties. Equity Securities Risk: The Fund invests in publicly traded equity securities, and their value may fluctuate, sometimes rapidly and unpredictably, which means a security may be worth more or less than when it was purchased. Foreign (Non-U.S.) Investment Risk: Investments in securities of non-U.S. issuers may involve more risk than those of U.S. issuers. These securities may fluctuate more widely in price and may be more difficult to trade than domestic securities due to adverse market, economic, political, regulatory, or other factors. Global Risk: The Fund invests in companies in multiple countries. These companies may experience differing outcomes with respect to safety and security, economic uncertainties, natural and environmental conditions, health conditions, and/or systemic market dislocations. The global interconnectivity of industries and companies, especially with respect to goods, can be negatively impacted by events occurring beyond a company’s principal geographic location, which can contribute to volatility, valuation, and liquidity issues. Inflation Risk: Prices for goods and services tend to rise over time, which may erode the purchasing power of investments. Interest Rate Risk: As interest rates rise, bond prices fall and vice versa; long-term securities tend to rise and fall more than short-term securities. Investment Securities Risk: To the extent the Fund invests in other funds, shareholders will bear to layers of asset-based expenses, which could reduce returns. Leverage Risk: Trying to enhance investment returns by borrowing money or using other leverage transactions such as reverser purchase agreements—magnifies both gains and losses, resulting in greater volatility. Market Capitalization Risk: Investments in mid-capitalization companies may be more volatile than investments in large-capitalization companies. Market Risk: The market values of the portfolio’s holdings rise and fall from day to day, so investments may lose value. Municipal Market Risk: Economic conditions, political or legislative changes, public health crises, uncertainties related to the tax status of municipal securities, or the rights of investors in these securities may negatively impact the yield or value of a municipal security. New Fund Risk: The Fund is a recently organized, giving prospective investors a limited track record on which to base their investment decision. Non-Diversification Risk: The Fund may have more risk because it is “non-diversified”, meaning that it can invest more of its assets in a smaller number of issuers. Accordingly, changes in the value of a single security may have a more significant effect, either negative or positive, on the Fund’s net asset value. Quantitative Model Risk: AB uses a quantitative model to identify investment opportunities for the Fund. There is a risk that market behavior will change and the patters upon which the models are based will weaken or disappear which would reduce the ability of the models to generate and excess return. Sector Risk: The Fund may have more risk because it may invest to a significant extent in one or more particular market sectors, such as the information technology sector. To the extent it does so, market or economic factors affecting the relevant sector(s) could have a major effect on the value of the Fund’s investments. Tax Risk: The U.S. Government and the U.S. Congress may periodically consider changes in federal tax law that could limit or eliminate the federal tax exemption for municipal bond income, which would in effect reduce the income received by shareholders from the Fund by increasing taxes on that income.

AllianceBernstein L.P. (AB) is the investment adviser for the Fund.
Distributed by Foreside Fund Services, LLC. Foreside is not related to AB.

© 2024 AllianceBernstein L.P.