AllianceBernstein's Global Head of ETF Strategy and Partnerships, Julie Gunts, discussed the resilience of ETF inflows, particularly into the tech sector, even during periods of volatility in July. Despite a "pretty volatile market for tech stocks," net inflows continued, indicating investors are using ETFs for portfolio repositioning and to "buy the dip" after tech's strong year-to-date performance. Gunts noted that ETFs with broader tech exposure saw inflows, distinguishing them from more volatile leveraged ETFs, which constitute only 1% of the $16 trillion US ETF market.
Gunts highlighted AllianceBernstein's disciplined approach to the ETF market, which has led to significant growth. In just four years, the firm has launched 23 US ETFs and accumulated over $19 billion in assets under management (AUM). This growth is attributed to repackaging AB's research-driven active capabilities into the ETF wrapper, focusing on unique investment strategies and long-term client goals rather than chasing market trends or IPOs. Performance is considered "table stakes," with a strong emphasis on a research-driven process.
AllianceBernstein reported its preliminary assets under management increased to $909 billion as of July 31, 2026, up from $906 billion at the end of June. This increase was driven by firmwide net inflows, which offset unfavorable market movements during the month. Institutional clients recorded strong net inflows, including a $12 billion commercial mortgage loans mandate, while private wealth saw modest net inflows, and the retail channel experienced net outflows.
The firm has also been active in converting mutual funds to ETFs, having already transformed seven, which helps unlock new platform placement for strong performers. Gunts anticipates further flexibility and opportunities, particularly for taxable investors, once industry plumbing advances to automate ETF share classes. Tax awareness is also influencing portfolio managers, especially in equity, with the ETF structure itself helping to insulate funds from forced capital gains during heavy outflows, though bond funds still must distribute income.
