Active ETF Wars Heat Up As AllianceBernstein Rolls Out New Tax-Efficient ETF

AllianceBernstein has expanded its active ETF lineup with the launch of the AB US Equity ETF (NYSE:XCHG) earlier this week. XCHG is an actively managed fund aimed at long-term capital appreciation through investments in U.S. equities.

The fund will typically allocate at least 80% of its net assets to equity securities of U.S. companies. The ETF highlights the firm's push to translate institutional and private wealth strategies into the ETF wrapper. The launch also makes use of a 351-exchange mechanism at seeding, a structure designed to enhance tax efficiency when transitioning assets into an ETF vehicle.

AllianceBernstein framed XCHG as part of a broader effort to integrate tax-aware portfolio construction with active management. The fund is intended to complement holistic wealth strategies that balance equity exposure, diversification, and after-tax outcomes, particularly for investors sensitive to capital gains and portfolio turnover.

The launch comes as asset managers increasingly lean on actively managed ETFs to meet demand for transparency, liquidity, and potential tax advantages over traditional mutual funds. Active equity ETFs have been one of the fastest-growing segments of the U.S. ETF market, as firms seek to differentiate through research-driven strategies rather than pure index tracking.

XCHG adds to AllianceBernstein's steadily expanding ETF platform in the U.S. As of Dec 15, the firm manages 23 U.S.-listed ETFs with more than $13 billion in assets under management. The lineup spans both equity and fixed-income strategies, reflecting a broader industry shift toward delivering active management through exchange-traded vehicles.

With XCHG, AllianceBernstein is positioning itself to capture investor interest in actively managed U.S. equity exposure that emphasizes tax efficiency alongside long-term growth, as market volatility and tax considerations remain top of mind for investors.

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