Global asset manager AllianceBernstein has rolled out a new actively managed ETF providing exposure to a high-conviction portfolio of US large-cap equities.

Noel Archard, Global Head of ETFs and Portfolio Solutions at AllianceBernstein.

The AB US Large Cap Strategic Equities ETF (LRGC US) has been listed on NYSE with an expense ratio of 0.48%.

Noel Archard, Global Head of ETFs and Portfolio Solutions at AllianceBernstein, said: “The launch of the AB US Large Cap Strategic Equities ETF demonstrates our continued commitment to innovation and growth in order to meet evolving client needs.”

Christopher Hogbin, Head of Equities at AllianceBernstein, added: “We are thrilled to provide a new investment option for our clients in one of our core US equity strategies. With this new ETF, a broad range of clients will have access to a compelling active equity strategy delivered in a liquid, transparent, and tax-efficient vehicle.”

Investment approach

The fund is managed by Shri Singhvi, Chief Investment Officer – Strategic Equities, who has 19 years of investment experience including 15 years at AllianceBernstein.

The strategy seeks long-term growth of capital by selecting a subset of stocks from the S&P 500 based on both fundamental and quantitative research.

In applying quantitative analysis, AllianceBernstein considers metrics related to valuation, quality, investor behavior, and corporate behavior. In assessing corporate behavior, the firm focuses on a company’s capital allocation decisions including share repurchases, net equity issuances, and balance sheet management.

As of 20 September, the ETF contained 75 holdings with the most notable positions being Microsoft (8.4%), Alphabet (5.7%), Apple (4.9%), Visa (3.9%), Amazon.com (3.5%), and UnitedHealth (3.4%).