In September 2025, AllianceBernstein (AB) will hit the three-year anniversary of launching its active ETF suite. When we last spotlighted the suite in November 2023, the firm had just crossed the $1 billion mark. At the end of May 2025, AB’s active ETF suite had more than $7 billion in assets thanks to a growing lineup, net inflows and market performance.
The firm’s largest ETF was one of its first. The AB Ultra Short Income ETF (YEAR ) managed $1.4 billion at the end of May. Approximately $280 million has flowed into YEAR during the last six months. Industrywide, demand has been strong for ultra-short fixed income ETFs given elevated bond market volatility.
YEAR has been one of the beneficiaries, with its 4.4% 30-day SEC yield. The ETF’s average duration of 0.8 years and investment-grade exposure — primarily to corporates and U.S. government securities — provide a relatively low risk way to obtain an attractive yield.
Demand for International Equity Exposure
Meanwhile, the AB International Low Volatility Equity ETF (ILOW ) is the second largest AB ETF. ILOW converted into an ETF from a mutual fund in July 2024. The $1.2 billion ETF will have a ten-year track record this July. ILOW currently has a four-star Morningstar rating.
While some mutual-fund-to-ETF conversions do not garner interest, ILOW has been different. The lower-risk equity ETF pulled in $200 million in the last six months. The active ETF primarily holds developed international stocks like BAE Systems, Shell, and Tesco. ILOW was up 20% in the first five months of 2025. VettaFi expects AB to add an active emerging markets ETF in the coming months.
Advisors Sought Tax-Free Income
AB has more than $1 billion spread across three municipal bond ETFs. The largest, the AB Tax-Aware Short-Duration Municipal ETF (TAFI ), has over $740 million. TAFI is the least interest-rate sensitive of the trio. Meanwhile, the AB Tax-Aware Intermediate Municipal Bond ETF (TAFM ) and the AB Tax-Aware Long Municipal ETF TAXL provide advisors and their clients the ability to leverage the AB expertise and take on additional rate risk if they choose.
During VettaFi’s Income Strategy Symposium in early May, advisors told us they found municipal bond strategies particularly appealing. Indeed, the $285 million TAFM has more than doubled in size due to relatively strong net inflows in 2025. TAFM is diversified across the U.S., with bonds issued in New York, California, and Illinois well represented.
Both TAFM and TAFL launched in late 2023. VettaFi believes that AB will further expand its lineup in the next year with more municipal bond ETFs. The firm has strong active management expertise to leverage.
AB’s lineup also includes other taxable bond ETFs and options-based buffer ETFs. We believe the firm has room to grow, aided by advisor education.
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