What is the primary goal of LOWV?

LOWV seeks long-term growth of capital by investing primarily in US large-cap equity companies with stable performance patterns and attractive valuations.

What do up-capture and down-capture ratios mean for LOWV?

LOWV aims to capture approximately 90% of benchmark gains during rising markets and limit losses to about 70% during market declines, helping smooth returns over time.

How many holdings does LOWV typically maintain?

The fund typically holds between 60 and 80 stocks, balancing diversification and focus on high-quality, stable businesses.

How does LOWV differ from passive US equity index funds?

Unlike passive strategies, LOWV actively selects stocks to manage volatility while maintaining exposure to quality and growth sectors, avoiding unintended factor tilts.

Does low volatility mean sacrificing returns?

No. By targeting an up-capture of 90% and down-capture of 70%, LOWV aims to outperform the benchmark over time with lower volatility.

AB US Low Volatility Equity ETF

Overview

An actively managed portfolio of primarily US large-cap equity companies that seeks long-term growth of capital

About this Fund

The portfolio is an actively managed, high-conviction, core equity portfolio designed to outperform the S&P 500 over time, while emphasizing risk mitigation and seeking to capture most of the upside in rising markets
It invests in stocks of quality companies that have stable performance patterns and that trade at attractive prices

Investment Approach

Holds approximately 60–80 stocks with balanced exposure to quality, stability and reasonable price
Target upside and downside capture of 90%/70%

Why Invest in the AB US Low Volatility ETF?

Attractive Growth Potential
LOWV is an actively managed core equity portfolio that seeks to outperform the market with lower volatility.
Focus on QSP
We believe an effective defensive strategy should be grounded in company fundamentals and focused on firms that exhibit characteristics of quality (consistent cash flows and measures of profitability like return on invested capital), stability (low volatility of returns relative to the market) and attractive pricing that make them less susceptible to wide market swings (QSP).
Better Outcome
By focusing on the fundamental drivers of high-quality, resilient business models at attractive prices, our US low-volatility ETF allows investors to participate in rising markets (upside capture of 90%) and mitigate risk (downside capture of 70%) when markets are declining, enabling investors to stay in the market through challenging conditions.
Access the Active Advantage
While traditional passive approaches to low volatility tend to focus on individual equities with low standard deviation, which can sacrifice high-growth names, the active approach to targeting lower down capture with relatively higher up capture can provide more of a core exposure with the benefits of lower volatility.
High-Conviction Stock Selection
Integrated use of both quantitative and fundamental research in making investment decisions allows us to build a high-conviction, core equity portfolio for this US equity low-volatility ETF.  
Experienced Team
With over a decade of live track record, our investment team members use their judgment and experience to correct for biases and unintended risks, supporting the stability of our US low-volatility ETF. We have successfully navigated turbulent market conditions since the launch of our platform in September 2011.
Uncorrelated Source of Return
Our active core equity portfolio with lower volatility, the AB US Low Volatility ETF, can be used diversify the equity bucket or to complement existing defensive strategies in other asset classes.

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Additional Information

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Statement of Policies and Procedures for Proxy Voting

Frequently Asked Questions:

LOWV is an actively managed exchange-traded fund that seeks long-term growth of capital by investing primarily in US large-cap equity companies. Its strategy combines fundamental and quantitative research to target high-quality, stable businesses trading at attractive prices while managing overall share-price volatility below that of many international mutual funds.

Upside capture measures how much of a benchmark’s positive returns an ETF captures during market rallies, while downside capture measures how much it declines when the benchmark falls. LOWV aims to capture approximately 90% of the benchmark’s gains in up markets and reduce its losses to around 70% of benchmark declines in down markets, helping smooth returns over time and compound in favor of the investor.

Active management allows LOWV to direct sector overweight and underweight decisions dynamically. This means that, unlike an inherent tilt toward defensive sectors or a low-volatility factor that passive strategies often exhibit, LOWV has the capability to overweight high-growth sectors when appropriate while still targeting a low-volatility approach, maintaining an overall core equity exposure.

Unlike a passive index ETF, LOWV leverages active stock selection to manage volatility. Its managers use proprietary research to underweight companies that may exhibit higher potential downside risk and overweight companies with competitive advantages, quality management, solid balance sheets and stable earnings. The result is a portfolio designed to participate strongly in up markets while aiming to cushion against sharp drawdowns. Passive low-volatility strategies often screen for companies that simply exhibit low standard deviation that could cause unintended tilts toward factors including low beta and value, and away from factors including momentum and growth. LOWV intentionally seeks to limit unintended factor tilts.

Traditional passive approaches to screening securities based on standard deviation can have the unintended consequence of sacrificed up capture. By actively targeting an up capture of 90% and down capture of 70% with an intention to limit factor tilts, LOWV has the potential to outperform the benchmark over time with lower overall volatility.

Risks To Consider

There is no guarantee the fund will meet its investment objectives.
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 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.
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.
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.
New Fund Risk: The Fund is a recently organized, giving prospective investors a limited track record on which to base their investment decision.
Distributed by Foreside Fund Services, LLC. Foreside is not affiliated with AllianceBernstein.
AB funds may be offered only to persons in the United States and by way of a prospectus. This website should not be considered a solicitation or offering of any investment products or services to investors residing outside of the United States.

Investment Products Offered:

Are not FDIC Insured | May Lose Value | Are Not Bank Guaranteed

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