AB High Yield ETF

AB High Yield ETF (HYFI) is an actively managed AllianceBernstein fund. It holds mostly below-investment-grade corporate bonds, often called junk bonds, and owned 648 different issues as of August 31, 2026. It pays income monthly, with a trailing yield of 6.77% as of October 27, 2026. It charges 0.40% a year, far more than lower-cost rivals such as HYLB and SPHY at 0.05%, and its managers may use derivatives, including to add leverage.

• Over the year to Oct 27, 2026, HYFI returned +1.7%, 4th of 8 among similar funds.
• Its worst full calendar year was 2024 (+8.0%); its best was 2025 (+8.9%).
• The deepest fall in its price history was 6.3% (Feb 28, 2025 to Apr 7, 2025), recovered by May 12, 2025.

As of Aug 31, 2026, the fund held 648 securities; the ten largest made up 6.21% of assets, and 2.05% sat in cash and money-market holdings.

The bonds mature in 4.8 years on average (weighted by size), with an average coupon of 6.67%.

• Over the three months to Aug 31, 2026, investors withdrew a net $85K (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +0.19%, -0.20%, +0.81%.

HYFI does not track an index. AllianceBernstein's managers pick the holdings, aiming to "maximize total return consistent with prudent investment management." Normally, at least 80% of net assets goes into bonds rated Ba1 or lower by Moody's, or BB+ or lower by S&P or Fitch. These are below investment grade, which means a higher chance the issuer misses payments. The fund can also hold unrated bonds of similar quality and related derivatives. The managers combine quantitative analysis with credit and economic research. They look for mispriced bonds that they believe come from investor behavior, market complexity and limits on what investors can own.

The portfolio is broad. As of August 31, 2026, it held 648 issues, and the 10 largest made up just 6.21% of assets. TransDigm led at 0.87%, followed by Sopaipilla Investor (0.75%) and DaVita (0.64%). Bonds made up 91.6% of assets and loans 4.5%. U.S. issuers were 74.6%, with Canada next at 5.3%. Average maturity was 4.8 years. Trading is frequent: the prospectus reports 83% turnover.

The prospectus says the fund expects to use futures, forwards, options and swaps to a significant extent. It may also create market exposure substantially larger than its net assets. That is leverage, and it magnifies both gains and losses. On August 31, 2026, its 12 derivative positions netted to about -0.03% of assets.

• HYFI charges 0.4% a year, versus an average of 0.42% for the similar funds below (5th of 8, cheapest first).
• Using the prospectus's standard example, $10,000 invested would cost about $41 in the first year and $505 over 10 years (assuming a 5% annual return).

HYFI pays monthly from a broad portfolio of high-yield bonds, but its credit risk makes it a source of income, not a stabilizer.

HYFI may add monthly income: its trailing 12-month yield was 6.77% as of October 27, 2026. The trade-off is credit risk, which tends to hurt when the economy weakens. The ETF launched on May 15, 2023, so its own price history misses 2008, 2020 and 2022. The prospectus record goes back to 2016, and those earlier years likely reflect history from before the ETF shares existed. That record shows an 11.7% loss in 2022 and a 14.01% drop in the first quarter of 2020. Since launch, its deepest fall was 6.3%, from February 28 to April 7, 2025. It recovered by May 12, 2025.

Someone drawing income in a bad year could have to sell shares at low prices. Costs are 0.40% a year, or $41 in the first year on $10,000 under the SEC's standard example. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.

Matched by bond funds with the closest average maturity and issuer mix (N-PORT).