New High Yield ETF From AllianceBernstein Launches

AllianceBernstein has launched the AB High Yield ETF (NYSE Arca: HYFI) as an active ETF on the New York Stock Exchange.

HYFI invests at least 80% of its net assets in US high-yield corporate bonds and related derivatives. It seeks to provide income through broad diversification, dynamic beta exposures, and quantitative and fundamental research.

AB’s global head of ETFs and portfolio solutions Noel Archard said HYFI “unlocks a new opportunity to invest in additional income-generating products.” He added the fund supplies clients “with a flexible vehicle to weather various market conditions.”

See more: “AllianceBernstein Launches 3 New Active Equity ETFs

HYFI represents AB’s first mutual fund to ETF conversion. The conversion of AB High Yield Portfolio into HYFI was first announced in February.

“Both actively managed ETFs and fixed income ETFs are gaining traction in 2023,” said VettaFi’s head of research Todd Rosenbluth. “It is great to see an established asset manager like AB expand their lineup.”

AB entered the ETF space in September with the launch of two actively managed fixed income funds: the AB Ultra Short Income ETF (YEAR) and the AB Tax-Aware Short Duration Municipal ETF (TAFI). Last month, the firm launched its first equity-focused ETFs: the AB US Low Volatility Equity ETF (LOWV), the AB US High Dividend ETF (HIDV), and the AB Disruptors ETF (FWD).

AB’s head of global client group and head of private wealth Onur Erzan said HYFI “represents another exciting milestone.”

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