Secure Your Future: Unveiling AllianceBernstein's Latest Income-Focused ETFs
Expansion of Actively Managed Fixed Income ETFs and Market Impact
AllianceBernstein has enhanced its collection of actively managed fixed-income exchange-traded funds by launching the AB New York Intermediate Municipal ETF (NYM) and the AB Core Bond ETF (CORB). These new funds will have Jane Street, a global trading entity, serving as their primary market maker. With these recent additions, AllianceBernstein's total assets in active fixed-income ETFs have surpassed $5.5 billion, and its broader platform for active ETFs has exceeded $10 billion in assets under management.
Strategic Importance and Investor Benefits of the New Funds
According to Noel Archard, Global Head of ETFs & Portfolio Solutions at AllianceBernstein, these two new funds are crucial additions to the firm's active fixed-income ETF offerings. He noted that the NYM fund reinforces the company's dedication to broadening its municipal bond selections, which currently hold approximately $2.5 billion in assets. Meanwhile, the CORB fund presents investors with a proven method for gaining exposure to actively managed taxable fixed income. Archard emphasized that these latest products are crafted to address the changing demands of investors who seek varied and flexible options in bond investments.
Investment Objectives and Target Audiences
The AB New York Intermediate Municipal ETF is structured to prioritize capital preservation and maximize overall returns for residents of New York, taking into account federal, state, and local tax implications. Conversely, the AB Core Bond ETF focuses on the safety of principal and aims to deliver a moderate to high level of current income, making it particularly suitable for investors looking for a foundational allocation within fixed-income portfolios.
Leadership and Expertise in Municipal Bonds
Scott DiMaggio, AllianceBernstein's Head of Fixed Income, highlighted the substantial growth of the firm's municipal bond platform, which has expanded from $35 billion in assets under management in 2016 to over $83 billion. This growth, he indicated, demonstrates the extensive experience and robust capabilities his team brings to the market. DiMaggio underscored that the two new ETFs embody the firm's dedication to integrating innovative research with a forward-thinking investment methodology.
Industry Recognition and Future Prospects
This announcement follows AllianceBernstein's recent acknowledgment as the Money Management Institute/Barron’s 2025 Asset Manager of the Year in the retail advisory sector, specifically for firms managing assets between $25 billion and $500 billion. The firm stated that this award confirms its commitment to achieving strong investor results through actively managed strategies. As the demand for active fixed-income ETFs continues to escalate, these new launches are expected to provide investors with additional avenues for tax-efficient municipal income and core bond exposure within a versatile, actively managed framework.