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AllianceBernstein Joins Wall Street's ETF Mania With Active Bond Funds

  • Asset manager debuts two short-duration fixed-income funds
  • Follows Capital Group, Neuberger in launching first ETFs

Photographer: Witthaya Prasongsin/Moment/Getty Images

AllianceBernstein Holding LP is launching two actively managed exchange-traded funds Wednesday, becoming the latest large asset manager to leap into the $6.6 trillion ETF industry despite a brutal rout in markets.

The AB Ultra-Short Income ETF (ticker YEAR) will invest in US government and investment-grade corporate bonds that will typically have an average duration of less than one year. The AB Tax-Aware Short-Duration Municipal ETF (TAFI) will invest in municipal bonds that pay interest exempt from federal income tax. While YEAR has an expense ratio of 0.25%, TAFI’s is 0.27%.