About AB Active ETFs, Inc. AB Tax-Aware Short Duration Municipal ETF (TAFI)

AB Active ETFs, Inc. AB Tax-Aware Short Duration Municipal ETF (TAFI) is an exchange-traded fund that seeks to provide investors with tax-efficient income by investing in a portfolio of short-term municipal bonds. This ETF is managed by AB, a global asset management firm with a long history of expertise in fixed income investing. TAFI aims to provide investors with a diversified portfolio of investment grade municipal bonds while minimizing the impact of taxes on their investment returns. The fund's investment strategy focuses on bonds with shorter maturities, which helps to reduce interest rate risk and increase liquidity. In addition, the portfolio is actively managed, allowing the fund's managers to capitalize on market opportunities and adjust the allocation based on their assessment of market conditions.

One of the key advantages of TAFI is its tax-awareness. The fund's managers take into consideration the tax implications of each investment decision, aiming to maximize after-tax returns for investors. Municipal bonds are generally exempt from federal income taxes and may also be exempt from state and local taxes, depending on the issuer and the investor's place of residence. By investing in municipal bonds, TAFI provides investors with an opportunity to generate tax-free income, potentially enhancing their overall after-tax returns. The fund also seeks to minimize the impact of the alternative minimum tax (AMT) on its investors, which can be a significant tax burden for some individuals.