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Could ABND Be the Best Income ETF for Your Core Allocation?

BY | ETF Database

4:17 am ET 11/05/26 | 11 VIEWS

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ABND

Income ETF strategies have proliferated in recent years as investors look to navigate rising costs and, for many, looming retirement. Add in some active management, and those funds can potentially outperform rival bond funds at a greater clip. The American Century Core Plus Income ETF (ABND) takes just that approach while looking to serve a core allocation role in portfolios, delivering strong income for investors.Key Takeaways: Income ETFs have become a very popular segment of bond and equity strategies in recent years. Finding the right income ETF, then, becomes an important task for investors. ABND’s approach, offering a core income ETF strategy, could help it contend in that area. ABND charges a 32 basis point fee to actively invest in income-generating bonds. The strategy looks to craft a broad portfolio without requiring a particular target duration. The ETF seeks out investment grade high yield, corporate, bank loans, and other debt offerings. ABND can also invest in equities and preferreds to generate income. The fund’s team rotates between sectors based on a model of both quantitative and fundamental inputs, considering global macroeconomic factors and interest rates. Derivatives, too, are used to generate income to help the fund meet its goals. What’s more, the strategy’s active approach can help augment its approach. Where index-tracking bond funds must wait before they can adapt to either events or bonds being called early, active strategies like ABND can adjust to meet their income or performance goals. According to American Century Investments, the fund provided a 5.38% 12-month distribution rate as of September 30. The fund also provided a 7.1% yield to maturity as of the same date per American Century Investments data. See more: American Century’s Bartolini Talks Rate Hikes, AI, Midterms Over the last three years, as well, the fund has returned 6.7%, per ETF Database data. That has notably outperformed the fund’s benchmark, the Bloomberg U.S. Aggregate Bond Index, in that time. Together, the fund can make for a strong option to serve in that core or core plus allocation. Especially as investors look to tax loss harvest out of other bond strategies, ABND can appeal. For more news, information, and analysis, visit the Core Strategies Content Hub.

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