AllianceBernstein Hits $1 Billion in Managed ETF Assets

Inflows surge on demand for fixed-income investments.

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Finance Reporter
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Reviewed by: Mark Nacinovich
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Edited by: Ron Day

AllianceBernstein, which manages $670 billion in a range of institutional, retail and wealth-management accounts, crossed the $1 billion mark for assets in its exchange-traded fund business earlier this month, barely a year after it entered the ETF market. 

In addition, the Nashville, Tenn.-based fund issuer, which launched its first ETF in September 2022, has seen another $150 million pour into its ETFs in the past three weeks, as investors begin to rebalance for the new year, according to Anita Rausch, the firm's global head of ETF capital markets. 

The firm, which manages seven ETFs according to its website, sees its distribution network and client relationships as drivers of the explosive growth just over a year after the ETF business was started, Rausch told etf.com in an email.

“We are seeing interest from all manners of clients, including advisors and institutions,” she said. “There is a desire for more flexibility and efficiency in certain parts of the portfolio, and ETFs fulfill that."

AllianceBernstein Focused on Fixed-Income ETFs

As interest rates achieved record peaks this year, investors poured money into fixed income. AllianceBernstein’s largest ETF—the $538 million AB Ultra Short Income ETF (YEAR), with an expense ratio of 0.25%—has alone brought in nearly $380 million in inflows year to date, a staggering 70% of its assets under management.

Looking forward, the firm will continue to focus on fixed income. 

“Next year we are going to continue to grow our suite to showcase our strengths and build our brand. That being said, the first half of 2024 will have a fixed-income focus, and in the second half of the year, we’ll be more focused on launching additional equity and alternative products,” Rausch wrote. 

In addition to offering ETFs, AllianceBernstein has 51 mutual funds through its wealth-management arm. The company in September launched a new actively managed exchange-traded fund, continuing its push into the increasingly popular segment.

Contact Lucy Brewster at [email protected].

Lucy Brewster is a finance reporter at etf.com covering asset managers, emerging technologies, and regulation. She hosts etf.com webinars and appears on Exchange Traded Fridays, etf.com’s flagship podcast. She previously was a finance fellow at Fortune Magazine where she covered markets, investment strategy, and venture capital. She has also been a freelancer writer at the publication Mergers & Acquisitions and a research fellow at the Historic Hudson Valley. 

She graduated from Vassar College in 2022 with a degree in History and was an editor of The Miscellany News, the college's award winning student run newspaper. 

Lucy lives in Brooklyn, NY, and in her free time she loves to run and find new recipes to cook.