Important Notice: Bernstein Intermediate Duration Institutional Portfolio converted to AB Core Bond ETF on November 10th — Read More

Overview

An actively managed core fixed-income ETF that seeks to provide safety of principal and a moderate to high rate of income, subject to taxes

About this Fund

  • Core fixed-income strategy with a global, multi-sector approach that seeks an attractive risk-and-return profile
  • Leverages the strength of AB’s award-winning fixed-income platform to actively manage a risk-weighted barbell of rates and credits seeking to boost income

Investment Approach

  • Invests in a broad range of fixed-income securities, seeking an average portfolio quality of securities rated A or above
  • May invest up to 25% in below-investment-grade bonds, but in no more than 5% CCC-rated securities, and include bonds with a range of maturities, from short term to long term
 

Why Invest in the AB Core Bond ETF?

  • Harness the power of active management
    Active oversight allows the portfolio managers to dynamically position the portfolio along the yield curve and credit spectrum, targeting opportunities beyond passive exposure.
  • Leverage proprietary technology
    The fund is powered by patented technology that integrates research, trading and liquidity data to construct portfolios with precision and efficiency to help manage risk and enhance opportunities.
  • Access sources of excess returns
    AB’s active management goes beyond passive benchmarks by actively seeking excess returns from multiple sources. The portfolio team prioritizes sector allocation and security selection as the main drivers of performance, while also strategically managing yield-curve positioning, duration and country allocation to further enhance return potential.
  • Navigate complex markets
    The team integrates rigorous quantitative models with deep fundamental research to identify undervalued bonds and manage credit risk. During market disruptions—such as trade wars or the COVID-19 epidemic—robust analysis helps guide investment decisions. By leveraging momentum signals, mean reversion, relative value and default probability metrics, the team uncovers opportunities and proactively manages risk.
  • Proactive risk management
    The ongoing monitoring of portfolio exposures ensures alignment with target levels and allows for timely adjustments as market conditions change, helping to minimize downside risk.
 
Invest for Income icon
Explore Solutions

Fixed Income

Looking for more information about fixed-income strategies? Explore our other products and thought leadership. 

Learn More 
 

Additional Information

Understanding Sales Charges and Expenses 
Statement of Policies and Procedures for Proxy Voting 
 

 AB Core Bond ETF (CORB) FAQs

Risks To Consider

  • 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 our Literature Center or contact your AB representative. Please read the prospectus and/or summary prospectus carefully before investing.

  • Below Investment Grade Securities Risk: Investments in fixed-income securities with lower ratings (commonly known as “junkbonds”) are subject to a higher probability that an issuer will default or fail to meet its payment obligations. 

  • 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.

  • Duration Risk: Duration is a measure that relates the expected price volatility of a fixed-income security to changes in interest rates. The duration of a fixed-income security may be shorter than or equal to full maturity of a fixed-income security. Fixed-income securities with longer durations have more risk and will decrease in price as interest rates rise. 

  • Emerging Markets Securities Risk: The risks of investing in foreign (non-U.S.) securities are heightened with respect to issuers inemerging-market countries because the markets are less developed, less liquid and subject to increased potential for marketmanipulation, and there may be a greater amount of economic, political and social uncertainty.

  • Illiquid Investment Risk: Illiquid investments risk exists when certain investments are or become difficult to purchase or sell. Difficulty in selling such investments may result in sales at disadvantageous prices affecting the value of your investment in the Fund. 

  • 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.

  • 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.

  • Lower-rated Securities Risk: Lower-rated securities, or junk bonds/high-yield securities, are subject to greater risk of loss ofprincipal and interest and greater market risk than higher-rated securities.

  • Market Risk: The market values of the portfolio’s holdings rise and fall from day to day, so investments may lose value. 

  • Mortgage-Related Securities Risk: Mortgage-related securities represent interests in “pools” of mortgages, including consumerloans or receivables held in trust.

  • Distributed by Foreside Fund Services, LLC. Foreside is not affiliated with AllianceBernstein.