ActiveETFs | InFocus

U.S. One, Inc. had previously filed a 40-APP with the SEC on Feb 1^st, 2010, seeking the exemptions required to create an Actively-Managed ETF that was initially described in that filing as a “fund of funds” that will hold shares of underlying ETFs. On April 5^th, U.S. One filed the N-1A form with the SEC which provides a lot more detail and colour on the Active ETF launch that is being planned.

The planned ETF, for now called “One Fund”, will trade on the NYSE with the ONEF ticker. It will have a fund of funds structure and will invest in other ETFs in order achieve its objective of long-term capital appreciation. The fund can hold ETFs that invest in securities from both developed and emerging markets but the ETFs have to be listed in the US. ONEF will sport an expense ratio of 0.51%, which includes a management fee of 0.35%. This is quite a competitive figure given that the only other Active ETF with a fund of funds structure – the AdvisorShares Dent Tactical ETF (DENT: 19.52 +0.26%) – has an expense ratio of 1.56%. Even compared to regular actively-managed equity ETFs, which have an average expense ratio of 0.90%, ONEF is very competitive. The fund will generally look to pursue a buy-and-hold strategy, utilizing an asset allocation strategy that pre-determines a target mix of investment types for the fund. Find a complete, detailed break-down of ONEF here.

U.S. One Inc., based out of Nevada, will be responsible for the management of the fund. U.S. One is a registered investment advisory firm which focuses on low-cost and simple investing, following buy-and-hold principles. Specifically, the portfolio manager the fund will be Paul Hrabal, who is the President of U.S. One Inc. and founded the investment advisor in 2008.

ONEF specifically states that it will not utilize derivatives as part of its investment process. This should help it get around the recent clampdown by the SEC on new ETFs that utilize derivatives.

Disclosure: No positions in above-mentioned names.

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