AllianceBernstein Finalizes Two New ETF Conversions
Latest additions bring AB's total ETF offering to 14 products
"When you observe the ETF market and the spectrum of investors in this space, you can see how active ETFs have really started to take root," said AB Global Head of ETFs and Portfolio Solutions
Details on the funds include:
- SDFI is an actively managed, short duration multisector bond ETF. The investment objective of AB Short Duration Income ETF is to seek high current income consistent with preservation of capital.
- SYFI is an actively managed, short duration high yield bond ETF. The investment objective of AB Short Duration High Yield ETF is to seek the highest level of income that is available without assuming what AB considers to be undue risk to principal.
"Today's launch demonstrates AB's robust global fixed income business, adding additional building blocks for efficient income," says AB's Head of Fixed Income
For more information and to learn more about AB's ETF platform, which has surpassed
About
Disclosures
Investing in securities involves risk, and there is no guarantee of principal.
Investors should consider the investment objectives, risks, fees 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.
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Investment Risk |
SDFI |
SYFI |
Cash Transactions Risk |
X |
X |
ETF Share Price and Net Asset Value Risk |
X |
X |
Authorized Participant Risk |
X |
X |
Active Trading Market Risk |
X |
X |
Derivatives Risk |
X |
X |
Leverage Risk |
X |
|
Credit Risk |
X |
X |
Duration Risk |
X |
X |
Illiquid Investments Risk |
X |
X |
Inflation Risk |
X |
X |
Interest Rate Risk |
X |
X |
Market Risk |
X |
X |
Loan Participants and Assignments Risk |
|
X |
Management Risk |
X |
X |
Foreign (Non- |
X |
X |
Currency Risk |
X |
X |
Emerging Market Risk |
X |
X |
Mortgage-Related and Other Asset-Backed Securities Risk |
X |
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Market Risk: The value of the Fund's assets will fluctuate as the market or markets in which the Fund invests fluctuate. 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. Below Investment Grade Securities Risk: Investments in fixed-income securities with lower ratings (commonly known as "junk bonds") are subject to a higher probability that an issuer will default or fail to meet its payment obligations. These securities may be subject to greater price volatility due to such factors as specific corporate developments and negative perceptions of the junk bond market generally and may be more difficult to trade than other types of securities. Credit Risk: An issuer or guarantor of a fixed-income security, or the counterparty to a derivatives or other contract, may be unable or unwilling to make timely payments of interest or principal, or to otherwise honor its obligations. The issuer or guarantor may default, causing a loss of the full principal amount of a security and accrued interest. Risk: Duration is a measure that relates the expected price volatility of a fixed-income security to changes in interest rates. The duration of a fixed-income security may be shorter than or equal to full maturity of a fixed-income security. Fixed income securities with longer durations have more risk and will decrease in price as interest rates rise. Inflation Risk: This is the risk that the value of assets or income from investments will be less in the future as inflation decreases the value of money. As inflation increases, the value of the Fund's assets can decline as can the value of the Fund's distributions. Derivatives Risk: Derivatives may be difficult to price or unwind and may be leveraged so that small changes may produce disproportionate losses for the Fund. A short position in a derivative instrument involves the risk of a theoretically unlimited increase in the value of the underlying asset, reference rate or index, which could cause the Fund to suffer a potentially unlimited loss. Derivatives, especially over-the-counter derivatives, are also subject to counterparty risk, which is the risk that the counterparty (the party on the other side of the transaction) on a derivative transaction will be unable or unwilling to honor its contractual obligations to the Fund. Mortgage-Related and Other Asset-Backed Securities Risk: Investments in mortgage-related and other asset-backed securities are subject to certain additional risks. The value of these securities may be particularly sensitive to changes in interest rates. These risks include "extension risk", which is the risk that, in periods of rising interest rates, issuers may delay the payment of principal, and "prepayment risk", which is the risk that in periods of falling interest rates, issuers may pay principal sooner than expected, exposing the Fund to a lower rate of return upon reinvestment of principal. Mortgage-backed securities offered by nongovernmental issuers and other asset-backed securities may be subject to other risks, such as higher rates of default in the mortgages or assets backing the securities or risks associated with the nature and servicing of mortgages or assets backing the securities. Foreign (Non-
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