U.S. One files to offer ETFs that invest in individual securities

U.S. One Inc. has filed with the Securities and Exchange Commission for approval to offer exchange-traded funds that invest in individual U.S. and foreign-listed securities. The company launched its first ETF, the One Fund Ticker:(ONEF), on May 11. The actively managed ETF essentially acts as a model portfolio of ETFs and is composed of a portfolio of global equity index-based ETFs managed by BlackRock Inc. and The Vanguard Group Inc. The fund has $5 million in assets. When U.S. One filed to launch the One Fund, most firms that were filing for exemptive relief to launch active ETFs were doing it through this fund of ETFs structure, said the company’s president Paul Hrabal. But since then, firms have launched active ETFs that invest in individual securities, and U.S. One wants to do that as well, he said. “This could allow us to reduce expenses of our funds,” said Mr. Hrabal, a former executive at Dell Inc. If the SEC approves the request, U.S. One will be able to add individual securities to its current ETF as well as to new ones, he said. OneFund’s total operating expenses are 0.51%, which include a 0.16% fee for the ETFs in the portfolio and a 0.35% management fee.