At a glance
YEAR charges 0.25% a year, above the 0.2% average of the 7 funds most like it (the 6th cheapest of 8). It has $1.54B in assets, the 6th largest of that group; it paid 3.99% of its price in distributions over the past 12 months, monthly. Over the past year it returned +3.0% with distributions reinvested, 6th of those 8 funds; over three years it returned +4.7% a year. Its ten largest positions make up 33.6% of the fund, out of 145 in all.
The short version
AB Ultra Short Income ETF (YEAR) is an actively managed bond ETF from AllianceBernstein. It holds US Treasury notes and investment-grade corporate bonds and keeps its average duration (how sensitive its price is to interest rates) under one year. Its deepest price drop since its September 2022 launch was 0.6%. Its 0.25% expense ratio is higher than the 0.20% average for similar ultra-short funds.
Price history
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YEAR +3.0% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| YEAR official prospectus, to Dec 31, 2025 | — | +4.77% | — | — | — | +5.18% |
| YEAR price data to Oct 27, 2026 | +2.3% | +3.0% | +4.7% | — | — | +4.7% |
- Over the year to Oct 27, 2026, YEAR returned +3.0%, 6th of 8 among similar funds.
- Its worst full calendar year was 2025 (+4.7%); its best was 2023 (+5.9%).
- The deepest fall in its price history was 0.6% (Sep 15, 2022 to Oct 20, 2022), recovered by Nov 10, 2022.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +2.3% | — |
| 2025 | +4.7% | +4.77% |
| 2024 | +5.4% | +5.41% |
| 2023 | +5.9% | +5.96% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Before this security existed |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Before this security existed |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $1.4600 | |
| 2025 | $2.1800 | -16.5% |
| 2024 | $2.6100 | +3.2% |
| 2023 | $2.5300 |
What's inside
As of Aug 31, 2026, the fund held 145 securities; the ten largest made up 33.63% of assets, and 16.39% sat in cash and money-market holdings.
| Holding | Weight | |
|---|---|---|
| United States Treasury Bonds and notes | 7.76% | |
| United States Treasury Bonds and notes | 4.27% | |
| United States Treasury Bonds and notes | 4.22% | |
| United States Treasury Bonds and notes | 4.04% | |
| United States Treasury Bonds and notes | 3.49% | |
| United States Treasury Bonds and notes | 2.39% | |
| United States Treasury Bonds and notes | 2.37% | |
| United States Treasury Bonds and notes | 1.87% | |
| United States Treasury Bonds and notes | 1.79% | |
| United States Treasury Bonds and notes | 1.41% | |
| CITIGROUP INC Bonds and notes | 1.33% | |
| BANK OF AMERICA CORP Bonds and notes | 1.32% | |
| MORGAN STANLEY Bonds and notes | 1.32% | |
| JPMORGAN CHASE & CO Bonds and notes | 1.32% | |
| STANDARD CHARTERED PLC Bonds and notes | 1.30% |
By country
United States 70.3%United Kingdom 3.21%Japan 2.84%Canada 2.49%France 2.37%By issuer
Companies 48.01%US Treasury 33.63%Other 1.15%The bonds mature in 1.2 years on average (weighted by size), with an average coupon of 4.07%.
Source: N-PORT holdings report as of Aug 31, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Aug 31, 2026, investors added a net $76.6M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +0.20%, +0.26%, +0.29%.
How it works
AB Ultra Short Income ETF, from AllianceBernstein, is actively managed and follows no index. Its managers buy mainly U.S. government bonds and investment-grade corporate bonds, which are bonds rated less likely to default. In normal conditions they keep average duration under one year. Duration measures how sensitive a bond is to interest rates, so a short duration tends to keep price swings small. The fund may also own mortgage-backed and other asset-backed securities, certificates of deposit, commercial paper (short-term company IOUs) and foreign bonds, usually issued in U.S. dollars.
There is no set formula for what to buy. The managers pick holdings and decide how much to own based on market conditions, liquidity, credit quality, interest-rate sensitivity and each bond's effect on the fund's overall risk. They trade often: the prospectus filed March 27, 2026 reported portfolio turnover of 114%. As of August 31, 2026, the 10 largest positions were all U.S. Treasury notes, totaling 33.6% of assets. The biggest company bonds, about 1.3% each, came from Citigroup, Bank of America, Morgan Stanley, JPMorgan Chase and Standard Chartered.
Derivatives play a minor role. On August 31, 2026, the fund held a tiny position in two- and five-year Treasury note futures, which are contracts tied to Treasury prices. The fund expects to keep part of its assets in AB Government Money Market Portfolio, but it is not a money market fund itself, so its share price is not fixed at $1.00.
What it really costs
- YEAR charges 0.25% a year, versus an average of 0.2% for the similar funds below (6th of 8, cheapest first).
- Using the prospectus's standard example, $10,000 invested would cost about $26 in the first year and $318 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| YEAR | $26 | $80 | $141 | $318 |
Structure and tax notes
- Bond prices move opposite to interest rates; the longer the maturities it holds, the more its price reacts to rate changes.
In a retirement portfolio
It holds short-term, high-quality bonds whose prices have barely moved, so it may suit money that could be needed within a year or two.
YEAR could hold a cash reserve for upcoming withdrawals and pay monthly income along the way. Its trailing 12-month yield was 3.99% as of October 27, 2026. It launched in September 2022, so it missed the 2008 and 2020 crashes and most of the 2022 bear market. Its deepest drop was 0.6%, from September 15 to October 20, 2022, and it recovered by November 10, 2022. Its weakest calendar year, 2025, still returned 4.77%. Its worst quarter through 2025 still gained 0.73%. For someone selling shares in a bad year, that record points to small losses. There are drawbacks. Income drops when short-term rates fall, and inflation can outpace the returns. At 0.25% a year, it costs more than most peers. The SEC's standard example puts costs at $318 over 10 years on a $10,000 investment. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Retirees keeping a one- to two-year cash reserve who want monthly income; the trailing yield was 3.99% as of October 27, 2026.
- Investors who want managers choosing among Treasury notes and investment-grade bonds from banks such as Citigroup and JPMorgan, rather than an index fund.
- People who value small price swings: since its 2022 launch, the deepest drop was 0.6%, and it recovered within a month.
Look elsewhere if
- Cost-focused investors: the 0.25% expense ratio is above ICSH (0.08%), VUSB (0.10%), BKUI (0.12%) and JPST (0.18%).
- Anyone who needs a fixed $1 share price; YEAR is not a money market fund, and its share price moves every day.
- Investors seeking growth or inflation protection; with an average maturity of 1.2 years, income follows short-term rates and drops when they fall.
Close alternatives
Matched by bond funds with the closest average maturity and issuer mix (N-PORT).
| Fund | Avg. maturity | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| YEAR this fund | 1.2 yrs | 0.25% | $1.54B | +3.0% | +4.7% |
| ULST SPDR SSgA Ultra Short Term Bond ETF | 1.3 yrs | 0.2% | $532.7M | +3.1% | +4.7% |
| BKUI BNY Mellon Ultra Short Income ETF | 1.6 yrs | 0.12% | $574.7M | +3.5% | +4.9% |
| ICSH iShares Ultra Short-Term Bond Active ETF | 1.8 yrs | 0.08% | $8.14B | +3.5% | +4.9% |
| JPST JPMorgan Ultra-Short Income ETF | 2 yrs | 0.18% | $41.13B | +3.1% | +4.8% |
| VUSB Vanguard Ultra-Short Bond ETF | 2.8 yrs | 0.1% | $8.94B | +3.5% | +5.1% |
| SHYG iShares 0-5 Year High Yield Corporate Bond … | 3.1 yrs | 0.3% | $7.60B | +2.4% | +8.0% |
| SJNK SPDR Bloomberg Short Term High Yield Bond E… | 3.1 yrs | 0.4% | $4.88B | +1.5% | +7.8% |
Questions investors ask
Does YEAR pay monthly dividends?
Yes. YEAR pays income monthly. Its trailing 12-month yield was 3.99% as of October 27, 2026, or about $2 per share over the prior year. The payments come from interest on short-term Treasury notes, corporate bonds and cash holdings. Because the fund holds such short-term bonds, its income follows short-term interest rates. Payments tend to rise when rates go up and shrink when they come down.
What's the difference between YEAR and ULST?
They are similar ultra-short bond ETFs, but ULST costs less: 0.20% a year against YEAR's 0.25%. Their average maturities were close, at 1.2 years for YEAR and 1.3 years for ULST. As of October 27, 2026, one-year price returns were 3.0% for YEAR and 3.1% for ULST, and both returned 4.7% a year over three years. YEAR is larger, with $1.54 billion in net assets as of August 31, 2026, against $533 million for ULST as of June 30, 2026.
Is YEAR a money market fund?
No. The prospectus says YEAR is not a money market fund and does not try to keep a stable $1.00 share price. It holds Treasury notes, investment-grade corporate bonds and some asset-backed securities, with average duration under one year. Its price can dip. The deepest drop since launch was 0.6%, in the fall of 2022. The fund can put part of its assets into an affiliated government money market fund, but the ETF itself has a share price that moves.
Is YEAR safe for retirement savings?
It is low-risk but not risk-free. One-year volatility was 0.8% as of October 27, 2026. Through December 31, 2025, the fund returned 5.18% a year since launch. About 48% of assets were in company bonds as of August 31, 2026, including bonds from Citigroup, Bank of America, Morgan Stanley and JPMorgan. That brings credit risk and exposure to the financial sector. Inflation can also wear away the value of its returns over time.
How much does YEAR cost per year?
YEAR charges 0.25% a year, all of it management fee, with no fee waiver, according to the prospectus filed March 27, 2026. In the SEC's standard example, $10,000 invested with a 5% annual return would cost about $26 after one year, $80 after three, $141 after five and $318 after ten. It ranks 6th of 8 on cost among similar ultra-short bond funds, which average 0.20%.