AllianceBernstein expands ETF footprint globally

AllianceBernstein has expanded its exchange-traded fund business from two ETFs four years ago to 23 U.S. ETFs holding just under $20 billion, while launching products in Taiwan, Australia and Europe.

The firm introduced its first active fixed income ETF in Taiwan in August and has since added another fixed income fund and a Taiwan equity ETF that uses an option-income overlay. In Australia, AB listed additional share classes to meet local investor demand. Earlier this year the firm listed two equity UCITS ETFs in Europe, the AB Global Research Advanced UCITS ETF and the AB Global Disruptors UCITS ETF, taking its European active ETF platform to five funds after an April debut.

Julie Gunts, AB’s head of ETF strategy and partnerships, said the firm began planning its European push about three years ago after noting rising client interest in countries such as Germany and Italy, particularly from neo-wealth platforms and robo-advisers. Part of the group’s review looked at how its products would fit local markets and policy changes, including the German pension savings plan known as the AVD, which market participants expect could influence ETF demand.

Anita Rausch, global head of ETF capital markets, noted that much of current demand in Europe is for passive funds, reflecting available supply, but that active ETFs are gaining traction. ‘Most people are using passive but as active ETFs launch, we are all figuring out how to teach our clients to use active and passive together,’ she said.

Executives described a shift in the types of active ETFs entering Europe. Gunts pointed out that early offerings tended to be research-enhanced-beta products; over the past year more traditional active strategies have appeared, including fixed income, concentrated equity portfolios and options strategies.

AB highlighted retail and advisory channels as growth areas. The firm reports rising appetite from retail investors and a need to support advisers on integrating active ETFs alongside passive funds. Rausch welcomed industry efforts in the U.K. to modernize platform infrastructure to better accommodate ETFs and contrasted Europe’s gradual platform development with faster adoption in parts of Asia, where distribution has often been digital-first.

In Australia, the firm has concentrated on digital engagement to reach retail investors through mobile channels, independent financial advisers and institutional partners. Gunts said the firm is designing products and distribution approaches to match local demand in Taiwan, Australia and the U.S.

AB plans to expand its European lineup with additional thematic and options-based active products and to continue adapting its ETF offerings to local market requirements. The firm’s recent rollouts mirror a broader trend of bringing active strategies into ETF wrappers and using local distribution and platform infrastructure to reach advisors and retail clients.