AB International Low Volatility Equity ETF

AB International Low Volatility Equity ETF (ILOW) is an actively managed AllianceBernstein fund. Instead of tracking an index, it picks non-U.S. stocks that its managers judge to be profitable, steady and reasonably priced, and it held 85 companies as of August 31, 2026. Its goal is a smoother ride than many international funds. The trade-off is cost: its 0.50% expense ratio is the highest among seven similar funds, which average 0.22%.

• Over the year to Oct 27, 2026, ILOW returned +9.7%, 7th of 7 among similar funds.
• Its worst full calendar year was 2025 (+27.0%); its best was 2025 (+27.0%).
• The deepest fall in its price history was 10.4% (Mar 19, 2025 to Apr 8, 2025), recovered by Apr 22, 2025.

As of Aug 31, 2026, the fund held 85 securities; the ten largest made up 21.06% of assets.

• Over the three months to Aug 31, 2026, investors added a net $13.4M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +0.56%, +2.93%, +1.28%.

ILOW does not follow an index. AllianceBernstein's managers choose the stocks. They must keep at least 80% of net assets in shares of non-U.S. companies, spread across at least three countries outside the United States. They mainly buy mid-size and large companies worth $1.5 billion or more. Some holdings may be in emerging markets, meaning developing economies.

The managers combine two methods. Fundamental research means studying a company's business, management and competitive edge. Quantitative screens use data models to rank stocks. The managers look for lasting profits, low share-price swings, reasonable valuations, reliable company information and shares that trade easily. They then compare each company with the wider stock market. The prospectus does not set a fixed weighting formula or rebalancing schedule, so holdings change when the managers decide. Portfolio turnover was 27%, meaning roughly a quarter of the portfolio was replaced over the year.

Currency swings can change returns for U.S. investors. The managers may use currency forwards (contracts to swap currencies at a set rate on a later date) to reduce that risk, but they are not required to. As of August 31, 2026, the fund held 62 currency derivative positions with a net value of about -0.2% of assets. The prospectus also warns that much of the fund's value comes from gains on its holdings, so it may pay taxable capital gain distributions.

• ILOW charges 0.5% a year, versus an average of 0.22% for the similar funds below (7th of 7, cheapest first).
• Using the prospectus's standard example, $10,000 invested would cost about $51 in the first year and $628 over 10 years (assuming a 5% annual return).

It adds non-U.S. stocks picked for steadier prices to a portfolio that may lean heavily on U.S. shares.

ILOW gives a portfolio international stocks, led by the UK and Japan, picked to swing less than the broad market. Its record as an ETF is short. It launched in July 2024, so it did not trade through the 2008, 2020 or 2022 sell-offs. Its only full calendar year, 2025, returned 27%. Its deepest drop was 10.4%, from March 19 to April 8, 2025, and it had recovered by April 22. A short, mild record says little about how it would hold up in a long bear market, when a retiree might have to sell shares at low prices. Income is modest: the yield was 1.47% as of October 27, 2026, paid once a year. In the SEC's standard $10,000 example, its 0.50% fee costs $51 in the first year and $628 over 10 years. Past results don't predict future returns, and a plan should look at the whole portfolio, not one fund.

Matched by closest holdings overlap from the latest N-PORT reports (no similar fund shares 20% or more of its holdings).