AllianceBernstein Looks to Enter Active ETF Market

AllianceBernstein has asked the Securities and Exchange (SEC) for permission to launch an actively managed exchange-traded fund (ETF).

The AllianceBernstein request said the initial fund in what could eventually be a series of offerings would be called the AllianceBernstein Active ETF – U.S. Quantitative Strategy.

The company said its investment objective is longer-term growth of capital by investing principally in large-cap U.S. equities as well as in other securities; it will use a quantitative approach for its investing activities.

AllianceBernstein said in the application that the fund’s portfolio of securities will have adequate transparency that would “mitigate the potential conflicts of interest that might arise as a result of the Adviser’s active investment management of its relevant Fund.”

“Applicants submit that (a) the Funds will operate, function and trade in a manner very similar to the Index-ETFs that are currently in the marketplace, (b) the process for ensuring each Fund’s transparency adequately resolves the concerns that might arise from the active nature of the Funds and (c) the Funds merit the requested relief,” AllianceBernstein wrote in the SEC document.