AB Disruptors ETF

AB Disruptors ETF (FWD) is an actively managed AllianceBernstein fund. Its managers pick about 118 global stocks they see as innovation leaders, led by NVIDIA, Microsoft and Amazon as of August 31, 2026. It differs from similar funds in two ways: it relies on stock picking with heavy trading, and its 0.65% expense ratio is the highest of the nine funds compared, where the average for the eight similar funds is 0.17%.

• Over the year to Oct 27, 2026, FWD returned +15.2%, 3rd of 9 among similar funds.
• Its worst full calendar year was 2024 (+29.3%); its best was 2025 (+32.0%).
• The deepest fall in its price history was 29% (Jan 23, 2025 to Apr 4, 2025), recovered by Jun 26, 2025.

As of Aug 31, 2026, the fund held 118 securities; the ten largest made up 22.29% of assets.

By sector

• Over the three months to Aug 31, 2026, investors added a net $621.5M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +3.76%, -14.77%, +2.32%.

FWD does not track an index. AllianceBernstein, the fund's adviser, chooses stocks of any size from developed and emerging markets. It looks for "disruptive" innovation leaders: companies that use technology to change their markets, create new products or improve existing ones. The managers first look for broad innovation trends. They then study individual companies, weighing current and expected profits, growth prospects, competitive position, pricing power, technological edge and the strength of management.

The fund can invest in any sector, but this approach often leads to a heavy tilt toward information technology. It is "non-diversified," meaning the law lets it put more money into fewer companies than a diversified fund could. As of August 31, 2026, it held 118 stocks, and the top 10 made up 22.29% of assets. The largest were NVIDIA (4.17%), Microsoft (2.92%), Amazon (2.68%), Taiwan Semiconductor (2.25%) and Alphabet (2.14%). About 72.85% was in US companies, followed by Japan (4.01%) and Taiwan (3.51%). The prospectus sets no fixed weighting or rebalancing schedule. Those choices are left to the managers.

The fund trades a lot. Its portfolio turnover, the share of holdings replaced in a year, was 196%. That raises trading costs and can produce short-term gains that are taxed. The fund does not usually hedge its currency exposure, so exchange-rate moves affect returns. Shares trade on NYSE Arca at market prices, which can drift from the value of the holdings.

• FWD charges 0.65% a year, versus an average of 0.17% for the similar funds below (9th of 9, cheapest first).
• Using the prospectus's standard example, $10,000 invested would cost about $66 in the first year and $810 over 10 years (assuming a 5% annual return).

FWD is a concentrated, high-turnover bet on innovation stocks with almost no income, so it fits as a small add-on rather than a foundation.

FWD launched on March 22, 2023, so it has not been through the 2008, 2020 or 2022 downturns. Both of its full calendar years were gains: 29.46% in 2024 and 32.04% in 2025. Its deepest drop was 29%, from January 23 to April 4, 2025. It recovered by June 26, 2025, about 2.7 months later. Its one-year beta was 1.96 as of October 27, 2026. Beta measures how much a fund moves compared with the broad market, so the fund swung roughly twice as much. Anyone forced to sell in a slump could lock in steep losses. The yield was 0.09%, paid once a year, so it adds almost no income. Under the SEC's standard example, $10,000 would cost about $66 in fees in the first year and $810 over 10 years. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.

Matched by holdings overlap from the latest N-PORT reports.