Fixed Income
Overview
An actively managed investment-grade corporate bond ETF that seeks to maximize total return through current income and long-term capital appreciation
About this Fund
- Implements a bottom-up security selection approach, facilitated by advanced quantitative processes and AB’s premier trading technology
- Identifies essential bond characteristics (predictive factors) that have demonstrable links to potential outperformance over full market cycles
- Relies on an investment philosophy that focuses on avoiding the wrong bonds as much as it does on owning the right bonds
Investment Approach
- Invests at least 80% of its net assets in investment-grade fixed-income securities of corporate issuers
- Seeks to generate excess returns relative to its benchmark, while maintaining similar levels of volatility
Why Invest in the AB Corporate Bond ETF?
- Pursue Consistent Income from Investment-Grade Corporate Bonds
The AB Corporate Bond ETF (EYEG) invests at least 80% of assets in high-quality investment-grade corporate issuers, seeking steady income and long-term total return while maintaining benchmark-like volatility. - Enhance Return Potential with Active Corporate Bond Selection
Through bottom-up security selection supported by quantitative scoring and proprietary data, EYEG targets bonds expected to outperform the broader corporate bond universe, an advantage over passive corporate bond ETFs that hold every constituent regardless of fundamentals. - Leverage AB’s Advanced Fixed Income Technology
EYEG integrates AB’s fixed-income technology suite for real-time liquidity assessment, factor analysis, and efficient execution in the often-opaque corporate bond market. - Avoid Weaker Issuers with a Research-Driven Approach
The asymmetric nature of bond returns means avoiding deteriorating credits is just as important as owning strong ones. EYEG’s philosophy emphasizes rigorous credit evaluation to minimize downgrade and default risks. - Access a Dynamic, Factor-Informed Investment Process
AB’s quantitative research evaluates each bond across value, volatility, momentum, and other predictive factors. The Portfolio adjusts dynamically as different factors dominate in different market environments - Replace or Complement Broad Corporate Bond Index Funds
EYEG is designed to outperform corporate bond index funds with similar risk levels. It can act as a direct replacement for passive corporate bond ETFs or complement them to improve Portfolio outcomes.
Meet the Team
NASDAQ Just For Funds- Behind the Ticker: EYEG
Just for Funds with Nasdaq ETFs
Additional Information
AB Corporate Bond ETF (EYEG) FAQs
Risks To Consider
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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.
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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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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.
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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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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.
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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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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.
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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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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.
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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.
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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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New Fund Risk: The Fund is a recently organized, giving prospective investors a limited track record on which to base their investment decision.
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Distributed by Foreside Fund Services, LLC. Foreside is not affiliated with AllianceBernstein.