AllianceBernstein launches actively managed equity income ETF
Investment firm AllianceBernstein has introduced the AB Equity Premium Income ETF, a fund designed to provide income through S&P 500 exposure and a covered call option strategy.
AllianceBernstein (AB) has launched the AB Equity Premium Income ETF (INK) on the Nasdaq exchange. The firm has appointed Jane Street to serve as the lead market maker for the new vehicle.
The fund utilizes an active management approach to seek both current income and capital appreciation. It achieves this by combining broad exposure to the S&P 500 Index with a written covered call option overlay, a strategy designed to generate cash flow from option premiums while retaining potential upside from equity market participation.
According to AB, the fund is intended for investors seeking to navigate market volatility through outcome-oriented strategies. The product leverages the firm’s existing expertise in index and derivative strategies, a division managing approximately $90 billion. AllianceBernstein currently manages $900 billion in total assets across various client segments.