"The AB High Yield ETF broadens our offerings for clients by ultimately supplying them with a flexible vehicle to weather various market conditions," said Global Head of ETFs and Portfolio Solutions
The investment objective of HYFI is to seek to maximize total return consistent with prudent investment management. HYFI invests at least 80% of its net assets in US high-yield corporate bonds (fixed-income securities rated Ba1 or lower by Moody's or BB+ or lower by
"Following the success of our initial Fixed Income and Equity active ETFs, the addition of the AB High Yield ETF represents another exciting milestone for the ETF, Fixed Income and broader teams at AB," said Head of
"The NYSE is pleased to welcome the AB High Yield ETF to NYSE Arca, the world's largest and most liquid exchange for the listing and trading of ETFs," said Head of Exchange Traded Products at the NYSE Douglas Yones. "Now home to six AB ETFs, NYSE Arca continues to support the ETF ecosystem's growth with industry-leading market quality, world-class technology and a focus on ETF education."
Today's official launch of HYFI represents the successful completion of the firm's first mutual fund to ETF conversion. The planned conversion of AB High Yield Portfolio, a series of AB Bond Fund, Inc. into AB High Yield ETF, a series of AB Active ETFs, Inc. was first announced in February.
For more information and to learn more about AB's ETF platform, visit www.alliancebernstein.com/go/etfs.
About
Disclosures:
Investment Objective: The Fund's investment objective is to seek to maximize total return consistent with prudent investment management. Principal Strategies: The Fund invests, under normal circumstances, at least 80% of its net assets in fixed-income securities rated Ba1 or lower by
AB combines quantitative analysis with fundamental credit and economic research in seeking to exploit these inefficiencies. The AB High Yield ETF invests most often in securities of
Beta Definition: Beta measures the sensitivity of an investment to the movement of its benchmark. A beta higher than 1.0 indicates the investment has been more volatile than the benchmark and a beta of less than 1.0 indicates that the investment has been less volatile than the benchmark.
Investing in securities involves risk and there is no guarantee of principal.
Investors should consider the investment objectives, risks, charges, and expenses of the Fund/Portfolio carefully before investing. For copies of our prospectus or summary prospectus, which contain this and other information, visit us online at www.alliancebernstein.com or contact your AB representative. Please read the prospectus and/or summary prospectus carefully before investing.
Shares of the ETF may be bought or sold throughout the day at their market price on the exchange on which they are listed. The market price of an ETF's shares may be at, above or below the ETF's net asset value ("NAV") and will fluctuate with changes in the NAV as well as supply and demand in the market for the shares. Shares of the ETF may only be redeemed directly with the ETF at NAV by Authorized Participants, in very large creation units. There can be no guarantee that an active trading market for the Fund's shares will develop or be maintained, or that their listing will continue or remain unchanged. Buying or selling the Fund's shares on an exchange may require the payment of brokerage commissions and frequent trading may incur brokerage costs that detract significantly from investment returns.
Market Risk: The market values of the portfolio's holdings rise and fall from day to day, so investments may lose value. Interest Rate Risk: Changes in interest rates will affect the value of investments in fixed-income securities. When interest rates rise, the value of existing investments in fixed-income securities tends to fall and this decrease in value may not be offset by higher income from new investments. Interest rate risk is generally greater for fixed-income securities with longer maturities or durations. Credit Risk: A bond's credit rating reflects the issuer's ability to make timely payments of interest or principal—the lower the rating, the higher the risk of default. If the issuer's financial strength deteriorates, the issuer's rating may be lowered and the bond's value may decline. Below-Investment-Grade Securities Risk: Investments in fixed-income securities with lower ratings (commonly known as "junk bonds") tend to have a higher probability that an issuer will default or fail to meet its payment obligations. Duration Risk: Duration is a measure that relates the expected price volatility of a fixed-income security to changes in interest rates. Inflation Risk: Prices for goods and services tend to rise over time, which may erode the purchasing power of investments. Derivatives Risk: Investing in derivative instruments such as options, futures, forwards or swaps can be riskier than traditional investments, and may be more volatile, especially in a down market. Leverage Risk: Trying to enhance investment returns by borrowing money or using other leverage tools—magnify both gains and losses, resulting in greater volatility. Foreign (Non-US) Investments Risk: Non-US securities may be more volatile because of political, regulatory, market and economic uncertainties associated with such securities. Fluctuations in currency exchange rates may negatively affect the value of the investment or reduce returns. These risks are magnified in emerging or developing markets. Currency Risk: Fluctuations in currency exchange rates may negatively affect the value of the Fund's investments in fixed-income securities denominated in foreign currencies or reduce the Fund's returns. Illiquid Investments Risk: Illiquid investments risk exists when certain investments are or become difficult to purchase or sell. Difficulty in selling such investments may result in sales at disadvantageous prices affecting the value of your investment in the Fund. Authorized Participant Risk: Only a limited number of financial institutions that enter into an authorized participant agreement with the Fund ("Authorized Participants") may engage in creation or redemption transactions. If the Fund's Authorized Participants decide not to create or redeem shares, Fund shares may trade at a premium or discount to the Fund's NAV, or the Fund could face trading halts or de–listing.
The [A/B] logo is a registered service mark of
View original content:https://www.prnewswire.com/news-releases/alliancebernstein-launches-ab-high-yield-etf-hyfi-on-nyse-arca-301823947.html
SOURCE
Carly Symington, Media (US), 615-417-5701, Carly.Symington@alliancebernstein.com; Mark Griffin, Investors, 629-213-5672, Mark.Griffin@alliancebernstein.com