U.S. One plans three new ETFs

U.S. One plans to file for three additional funds: a global-fixed-income ETF; a balanced ETF and a series of portfolios that will mimic target date funds.
JUN 30, 2010
A recent entrant to the world of exchange-traded funds is looking to launch new funds, including one that’s similar to a target date strategy. U.S. One 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 The Vanguard Group Inc. and BlackRock Inc. Once that fund hits $35 million in assets, U.S. One plans to file for three additional funds: a global-fixed-income ETF; a balanced ETF and a series of portfolios that will mimic target date funds. “The end date won’t be retirement,” said president Paul Hrabal. “We think this portfolio structure would work with a target-date-like approach because it’s easy to use and understand,” he said. He declined to elaborate on what the dates of the portfolios would be based on, or how the portfolios will be designed. While model portfolios in the ETF world are gaining popularity among advisers, it’s not clear what value U.S. One brings with its ETFs, said Paul Justice, an analyst at Morningstar Inc. “For the fees they charge to wrap up existing fees, it doesn’t seem to be a good solution for anyone unless they need those exact ETFs,” Mr. Justice said. OneFund’s total operating expenses are 0.52%, which include the 0.16% fees for the ETFs in the portfolio and a 0.35% management fee. But as the fund gains assets, and if the ETFs within the portfolio lower their expenses, shareholders will see reductions, Mr. Hrabal said. “There are lots of advisers who want this because it’s a way to allow small investors to own a diversified portfolio,” he said. “For a $20,000 IRA, an adviser doesn’t want to spend time doing all the allocation work.” Mr. Hrabal, who spent most of his career as director of finance for development at Dell Inc., said he has all of his investible equity assets in the OneFund.

Latest News

Mesirow acquires part of flexPATH in second retirement deal of 2026
Mesirow acquires part of flexPATH in second retirement deal of 2026

Chicago-based Mesirow Fiduciary Solutions adds flexPATH's plan-level outsourced fiduciary book, boosting its retirement market reach to $164 billion.

Advisor moves: LPL lands $350M veteran advisor duo in Florida
Advisor moves: LPL lands $350M veteran advisor duo in Florida

Also, Raymond James's employee advisor channel adds breakaways from Wells Fargo and Stifel, while UBS welcomes an ex-Morgan Stanley duo in Indiana.

SEC accuses crypto firm founder of running $425 million Ponzi scheme
SEC accuses crypto firm founder of running $425 million Ponzi scheme

It promised guaranteed principal and 10% monthly returns. The SEC says it invested nothing.

MassMutual Ascend tops $2 billion in RIA annuity sales as advisors warm to income products
MassMutual Ascend tops $2 billion in RIA annuity sales as advisors warm to income products

Ten years after entering the fee-based annuity market, MassMutual Ascend says nearly half its lifetime sales came in the past two years alone – but barriers remain among fee-only advisors.

Fintech bytes: Wealth tech firms target advisor productivity with new integrations
Fintech bytes: Wealth tech firms target advisor productivity with new integrations

Amplify, WealthReach, Zeplyn and Zocks have unveiled partnerships aimed at automating portfolio management, content creation, account opening, and client communication.

SPONSORED Direct indexing webinar targets tax-loss harvesting amid market swings

Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income