On the heels of crossing the $1 billion threshold in active ETF AUM, AllianceBernstein has launched five active exchange-traded funds today: two on the New York Stock Exchange, and three on the Nasdaq.
The two NYSE-listed funds are the AB Tax-Aware Intermediate Municipal ETF (TAFM ) and the AB Tax-Aware Long Municipal ETF (TAFL ). TAFM and TAFL both seek to provide relative stability of principal and a moderate rate of after-tax return and income.
TAFM and TAFL pursue their objective by investing principally in a national portfolio of both municipal and taxable fixed income securities. They invest at least 80% of their net assets in municipal securities.
TAFM seeks to maintain an effective duration of four to seven years, under normal market conditions. Meanwhile, TAFL seeks to maintain an effective duration of seven to 14 years, under normal market conditions.
“In 2023, active ETFs have been gaining share,” said Todd Rosenbluth, head of research at VettaFi. “AB has quickly established itself as a strong provider of active fixed income ETFs leveraging a strong heritage.”
Meanwhile, on the Nasdaq…
BUFC invests in a combination of exchange-traded options contracts on an underlying ETF that seeks to track the investment results of the S&P 500. EYEG invests at least 80% of its net assets in investment-grade fixed income securities of corporate issuers. CPLS, meanwhile, invests at least 80% of its net assets in a broad range of debt securities.
AB’s Global Head of ETFs and Portfolio Solutions Noel Archard expressed enthusiasm over these funds in a news release.
“[T]hese new ETFs will… help investors navigate the evolving market cycles we see coming in 2024 and beyond,” he said.
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