Investment Strategy - AB Multisector Income ETF

Apr. 24, 2026

Prospectus [Line Items]

Strategy [Heading]

PRINCIPAL STRATEGIES

Strategy Narrative [Text Block]

The Fund is an actively-managed exchange-traded fund (“ETF”). The Fund pursues its objective by investing, under normal circumstances, at least 80% of its net assets, including any borrowings for investment purposes, in income-producing securities. Under normal circumstances, the Fund will typically maintain a dollar-weighted average duration between one and six years, although it may invest in securities of any duration or maturity.

The Fund invests across several fixed-income sectors without limitation. The Fund’s investments may include non‑government fixed-income securities, including corporate debt securities, non‑government mortgage-backed and other asset-backed securities, certificates of deposit and commercial paper. The Fund also invests in securities of U.S. and foreign governments and their agencies and instrumentalities (including mortgage-backed securities), derivatives related to such securities, and repurchase agreements relating to U.S. Government securities. The Fund may invest up to 65% of its net assets in below investment grade securities (commonly known as “junk bonds”). The Fund’s investments in foreign securities may include both government and corporate

securities, and securities of emerging market countries or of issuers in emerging markets. The Fund’s investments in foreign securities may be denominated in local currency or U.S. Dollar-denominated. The Fund may also invest in loan participations, inflation-indexed securities, structured securities, variable, floating, and inverse floating-rate instruments and preferred stock.

The Adviser selects securities across various sectors for purchase or sale based on its assessment of the securities’ risks and return characteristics as well as the securities’ impact on the overall risks and return characteristics of the Fund. In making this assessment, the Adviser takes into account various factors, including the credit quality and sensitivity to interest rates of the securities under consideration and of the Fund’s other holdings.

The Fund may utilize derivatives, such as options, futures contracts, forwards and swaps. The Fund may, for example, use interest rate futures contracts and swaps to establish exposure to the fixed-income markets or particular fixed-income securities. Derivatives may provide a more efficient and economical exposure to market segments than direct investments, and may also be a more efficient way to alter the Fund’s exposure. The Fund may also enter into transactions such as reverse repurchase agreements that are similar to borrowings for investment purposes. The Fund’s use of derivatives and these borrowing transactions may create aggregate exposure that is substantially in excess of its net assets, effectively leveraging the Fund.

The Adviser may hedge the foreign currency exposure resulting from the Fund’s security positions, and may take long or short positions in currencies, through the use of currency-related derivatives.