ETFs
AB converted short duration mutual funds into ETFs
“Today’s launch demonstrates the robustness of AB’s global fixed income business, adding additional building blocks for effective income,” noted Scott DiMaggio, head of fixed income at AB.
“These conversion products provide a user-friendly package for investment models, and we believe they will ultimately fit into client portfolios across multiple economic cycles,” he added.
SDFI’s bond portfolio targets a dollar-weighted average duration of three years. The fund selects its portfolio based on criteria such as credit quality and interest rate sensitivity of securities. It currently has $101.2 million in assets under management and first became available as a mutual fund in 2018.
Meanwhile, SYFI targets the junk bond sector and a dollar-weighted average duration of four years. The AllianceBernstein website notes that SYFI has avoided 75% of defaults in the domestic high yield sector. The fund’s prospectus states that it can invest in foreign and domestic securities. It also seeks to exploit inefficiencies in the bond market using a wide range of data. At the same time, the objective of the fund is to maximize the income it offers to investors. With a creation dating back to 2011, SYFI has assets under management of $676.2 million.
“This year, advisors have shown increasing interest in active fixed income ETFs. These are extremely timely launches given the rapid increase in demand for tools refined to target shorter durations,” said Kirsten Chang, Senior Industry Analyst at VettaFi.
AB Funds’ ETF lineup now includes 14 funds with approximately $3.7 billion in combined assets under management.
For more news, information and analysis, visit VettaFi | ETFDB.