AllianceBernstein Adds 3 New Active ETFs

AllianceBernstein Holding debuted three new actively managed products Wednesday, increasing its burgeoning exchange-traded fund arm.   

The firm launched the following new funds on the NYSE, according to a company statement:  

• AB US Low Volatility Equity ETF (LOWV)  
• AB US High Dividend ETF (HIDV)  
• AB Disruptors ETF (FWD)  

LOWV’s strategy will include “capital appreciation with an emphasis on lower volatility compared to the broader equity market,” and charges an expense ratio of 0.48%. HIDV’s portfolio will comprise “US companies that pay dividends and have the potential for long-term capital generation,” and has an expense ratio of 0.45%. Meanwhile, FWD “seeks to invest in ‘disruptive’ innovation leaders” across industries, and charges 0.65%.  

“We want to focus on products that are there for investors’ long-term portfolio needs as well as their tactical trading plans that they might be making,” Noel Archard, global head of ETFs at AllianceBernstein, said in an interview with etf.com. “These are enduring investment themes, regardless of what's going on in the market cycle.”  

He added that the offerings are targeted toward “core portfolio holdings that fit across broad themes that investors are always thinking about,” such as income generation, risk mitigation and growth opportunities.  

The three new funds add to AllianceBernstein’s suite of two other active ETFs: the AB Ultra Short Income ETF (YEAR) and the AB Tax-Aware Short Duration Municipal ETF (TAFI), which have collectively gathered more than $440 million in assets since their launch in September of last year, according to etf.com data.  

The fund’s launches come as actively managed ETFs have gained increased market share over the last few years, and are projected to increase in the coming ones.  

About one-third of all exchange-traded products are actively managed, with $396 billion in assets under management, according to etf.com data. Still, they make up a small, but growing, fraction of the $6.9 trillion ETF industry.  

Active ETFs have pulled in a total of $16.8 billion through Feb. 22. Almost 48% of actively managed ETFs had positive inflows compared to roughly 45% of passively managed ETFs during that period.

Contact Shubham Saharan at [email protected]