Issuer Q&A with Alliance Bernstein

Anita Rausch, Global Head of ETF Capital Markets at Alliance Bernstein
Danielle Rutsky, Senior Product Manager, Nasdaq ETP Listings

What drove the firm to expand into ETFs?

We listened to our investors and the marketplace. There is a desire for more flexibility and efficiency in certain parts of the portfolio, and ETFs fulfill that. Alliance Bernstein [AB] wants to meet investors where they are, and where they are is growing their ETF usage. ETFs also allow AB to complement our line up with a flexible wrapper, and introduce our brand and time tested research based investing to all those with a brokerage account

You recently launched BUFC, EYEG, AND CPLS on Nasdaq. What trends are you seeing for active and defined outcome ETFs? 

The trend we are seeing in active strategy ETFs is one of certain growth. Many assets managers are acknowledging that ETFs have become a part of all types of investors toolbox. Thus in order to serve demand, active strategies once reserved only for the largest clientele, are being offered in an efficient wrapper for all to consume. In the defined outcome ETF space, we are also seeing increased usage. As we live through periods of volatility, especially over the last few years, buffer-type strategies allow investors to stay invested in equities while maintaining significant levels of downside protection.

What types of use cases are you seeing investors utilize these strategies for?

We are seeing active ETFs being used in many different ways. In certain market environments and asset classes, active management can make more sense, so we are seeing some use active ETFs as core positions. Also, we are seeing a growing adoption of active ETFs being used as liquidity sleeves alongside mutual fund or SMA positions. The recent growth of active ETFs is an evolution and the ETF users now have the chance to easily combine active and passive strategies as well as ETFs and more traditional wrappers to get the best of all worlds.

What's next for Alliance Bernstein over the next 12 months?

Over the course of the year, AB is going to continue to grow our suite of ETFs to showcase our strengths and build our brand. We will be adding to our fixed income and equity line-up as well as building out alternative products. For all new product launches at AB, the ETF wrapper will be considered and used when it makes sense. AB has entered a new phase with more flexible product offerings to fulfill more client’s needs.

For more information, please visit https://www.alliancebernstein.com/us/en-us/investments/etfs.html

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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