Pursue Your Income Goals with AB's Actively Managed Fixed Income ETFs
Our active fixed income ETFs can help generate income, preserve capital, and manage risks.
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:
-
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. -
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. -
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.
-
Taxable
-
Municipal
- Taxable
- Municipal
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.
Why Consider Active High Yield ETFs
Markets shift quickly, risks evolve, and opportunities emerge. At AB, our actively managed high yield bond ETFs are designed with flexibility in mind, using a research-driven approach to assess credit quality, monitor risks and adjust as market conditions change
Higher Income, Lower Stress
We help to identify and seize the best high-yield opportunities while managing downside risks.
Risk Management That Thinks Ahead
Market conditions shift fast. Our active strategies adapt in real time to changing risks and opportunities.
Flexibility That Works for You
Break free from the limitations of benchmarks. Active high-yield strategies adapt to help maximize potential returns and minimize inefficiencies and transaction costs.
3 Reasons Active High Yield Deserves a Spot in Your Portfolio
As more ETFs enter the market, investors have increased access to active management, indexing, and everything in between. But what role do active high yield ETFs play in a portfolio?
Active Management is a Competitive Advantage
Choose an active strategy that aligns with your investment goals.
Our Latest Fixed Income Thinking
Position portfolios now to seize opportunities as they ripen.
Elevated yields and conservative balance sheets are helping high yield stay resilient amid trade uncertainty.
Explore the latest thoughts and fixed income market updates from AB's Senior Portfolio Managers
Equity markets can be volatile and unpredictable. As a result, we are seeing more investors turn to actively managed equity ETFs. See why we believe active equity ETFs may provide opportunity.
SUBSCRIBE
Visibility Into Our ETF Insights.
Get periodic insights, tools and access to events from AB’s ETF experts.
Thank You
Thank you for contacting us. Expect a reply soon.
Frequently Asked Questions
Get in touch for help getting started.
[[fa-icon-phone]] 800-247-4154, select 3
[[fa-icon-envelope]] ETFSpecialist@alliancebernstein.com
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.
The Morningstar Rating™ for funds, or star rating, is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. The star rating is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product’s monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The Morningstar Rating does not include any adjustment for sales loads. The top 10.0% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35.0% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10.0% receive 1 star. The Overall Morningstar Rating™ for a managed product is derived from a weighted average of the performance figures associated with its three-, five- and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36–59 months of total returns, 60% five-year rating/40% three-year rating for 60–119 months of total returns and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.
AB Short Duration High Yield ETF was rated against the following numbers of Multisector Bond funds over these time periods: 3 stars against 606 funds in the last three years, 3 stars against 577 funds in the last five years, and 2 stars against 523 funds in the last 10 years based on risk adjusted returns.
AB High Yield ETF was rated against the following numbers of High Yield Bond funds over these time periods: 3 stars against 606 funds in the last three years and 4 stars against 577 funds in the last five years. The fund does not yet have 10-years of history.
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.
Spread Duration: The measure used in fixed-income investing to estimate the sensitivity of a bond's price to changes in its credit spread. This measure reflects the potential change in the bond's value in response to a 100 basis point (1%) change in the credit spread, helping investors understand the associated risks.
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.
Sharpe ratio measures return relative to investment risk taken.
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 Flex Fee High Yield Portfolio.