AllianceBernstein expands ETF line to 23 US funds

AllianceBernstein has expanded its exchange-traded fund business globally, growing from two ETFs four years ago to 23 US-listed ETFs holding just under $20 billion and rolling out new products in Taiwan, Australia and Europe.

The firm launched its first active fixed income ETF in Taiwan in August and has since added a second fixed income product and a Taiwan equity ETF that uses an option income overlay. In Australia, AllianceBernstein listed local ETF share classes to broaden its offering for domestic investors.

In Europe, the firm introduced two equity UCITS ETFs earlier this year — the AB Global Research Advanced UCITS ETF and the AB Global Disruptors UCITS ETF — bringing its European active ETF platform to five funds after debuting in April.

Julie Gunts, head of ETF Strategy and Partnerships at AllianceBernstein, noted the ETF push started four years ago and that the firm began discussions with its European team about three years ago after seeing shifts in client demand, particularly in Germany and Italy through neo-wealth platforms and robo-advisers. The firm asked distribution partners detailed questions about product fit and local rules, including the new German pension savings plan, the AVD, as part of its market assessment.

Anita Rausch, Global Head of ETF Capital Markets, described the current European ETF market as largely driven by passive products because those are the most available. Active ETFs are appearing across traditional active categories such as fixed income, concentrated equity strategies and option-based approaches.

Gunts said, “Most people are using passive but as active ETFs launch, we are all figuring out how to teach advisers to use active and passive together.” She added the firm aims to deliver funds that match local demand, noting that products in Taiwan, Australia and the US reflect local investor needs while Europe will see more thematic and option strategies.

Rausch welcomed efforts by The Platform Association in the UK to modernize platform infrastructure to make ETFs easier to use. She noted the advisory infrastructure in the US was built around ETFs and said other regions must develop similar systems to support broader ETF adoption.

Both executives reported rising retail interest in ETFs across jurisdictions and a need to educate advisers on active ETF use. Rausch expects significant ETF growth in the coming years as more markets build supporting infrastructure and more active strategies become available within the ETF wrapper.