AllianceBernstein added two new actively managed funds to its emerging exchange-traded fund arm on Wednesday, marking the firm’s foray into the U.S.-based ETF industry.
The two funds include the following:
Both YEAR and TAFI are listed on the New York Arca and have expense ratios of 0.25%,and 0.27% respectively, according to a company statement. Both funds will focus on fixed income investment vehicles; YEAR will “deliver higher levels of yield relative to cash or cash-like investments,” while TAFI will serve municipal bond investors.
The asset manager, which has more than $735 billion in assets under management, announced in February it would be launching its first active ETF in the U.S. this year. The news comes just months after the appointment of former State Street veteran Noel Archard as its global head of ETFs and portfolio solutions.
“ETFs have evolved into an important execution tool across asset classes, and amidst the recent market volatility, we feel it is critical to offer our clients diversity and efficiency,” Archard said in the statement. “We will build upon this momentum to deliver an ETF lineup over time, which will reflect AB’s longstanding commitment to research excellence, investment discipline and unwavering commitment to clients.”
The lead market maker for all funds will be Jane Street Capital.
Contact Shubham Saharan at [email protected]