Fixed Income
Overview
An actively-managed, short-duration multi-sector bond ETF that seeks to provide attractive income across different market environments.
About this Fund
- Seeks to generate a high level of income while aiming to maximize risk-adjusted returns
- Attempts to provide attractive upside/downside capture relative to core bond strategies
Investment Approach
- Invests primarily in at least 65% of investment-grade debt securities of corporate bonds, securitized assets and government bonds and up to 35% in below-investment-grade bonds
- Employs a short duration multi-sector approach using investment-grade assets
- Will typically maintain a dollar-weighted average duration of less than three years
Why Invest in the Short Duration Income ETF?
- Seek Attractive Income with Lower Duration Risk
The AB Short Duration Income ETF (SDFI) invests in short-term bonds across the government, corporate, and securitized sectors seeking competitive income with meaningfully less interest-rate sensitivity than longer-duration fixed income funds. - Balance Credit and Rate Exposure Through a Multi-Sector Approach
By allocating across investment-grade bonds and selectively up to 35% in high yield, SDFI aims to enhance return potential while managing volatility across different market environments. - Leverage the Power of Fundamental and Quantitative Research
SDFI integrates human-driven credit insights with systematic security-level forecasts. This two-pronged process identifies opportunities mispriced by the market and challenges assumptions when fundamentals and data diverge - Capture Opportunities with Advanced Fixed Income Technology
The fund relies on AB’s proprietary platforms to analyze liquidity, construct portfolios, and synthesize broad credit data. These integrated systems enable faster, more informed decisions than peers relying on standard tools. - Benefit from Active Credit Selection in a Short-Term Bond Framework
SDFI is designed to generate income with less rate risk by emphasizing credit selection over interest-rate positioning. This approach is especially valuable in environments where credit conditions dominate returns. - Improve Portfolio Efficiency While Reducing Rate Sensitivity
SDFI can serve as a short duration complement or replacement for core aggregate bond exposure—lowering duration risk while preserving competitive income potential.
Meet The Team
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Annual Portfolio Turnover measures how frequently securities are bought and sold. As of the most recent fiscal year, consult the prospectus for more information.
Additional Information
AB Short Duration Income ETF (SDFI) FAQs
Risks To Consider
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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.
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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.
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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.
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Derivatives Risk: Derivatives may be more sensitive to changes in market conditions and may amplify risks.
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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.
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Inflation Risk: Prices for goods and services tend to rise over time, which may erode the purchasing power of investments.
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Market Risk: The market values of the portfolio’s holdings rise and fall from day to day, so investments may lose value.
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AllianceBernstein L.P. (AB) is the investment Advisor for the Fund. -
Distributed by Foreside Fund Services, LLC. Foreside is not affiliated with AllianceBernstein.
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Prior to close of business on 6/10/2024, 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 as 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’s shares’ lower expenses than 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. Prior to 6/7/2024, the Fund was called AB Short Duration Income Portfolio. Data prior to 6/7/2024 relates to AB Short Duration Income Portfolio.