Reno, Nevada-based investment management start-up U.S. One Trust
is gambling on exchange-traded funds. The company is launching its inaugural fund on Tuesday, after 27 months of work, company founder and chief investment
officer Paul Hrabal
told the MFWire
The One Fund
is a passively managed ETF of ETFs, which invests almost solely in passive index tracking exchange-traded funds, with a 70 percent allocation in domestic equities and 30 percent oversees. Hrabal also has plans to create a bond version of the fund in the future.
"I've always done a passive indexing approach. I was taught the John Bogle approach," said Hrabal, who is also the fund's portfolio manager.
The fund will have mostly Vanguard and iShares ETFs in its portfolio, and Hrabal said he's a big fan of the MSCI indices.
"I love the whole group [of MSCI ETFs] and how they divide the world. I chose the ones that had the best segmented tracking at the lowest cost," Hrabal added. "Our shareholders will get 95 percent of the world stock market for 51 basis points."
U.S. One designed the fund to appeal to the small, retail investor, specifically those investing less that $100,000. The One Fund will be marketed directly to retail investors and also sold through advisors.
"I wanted to build a fund that would be simple and diversified for 30 to 50 year old asset accumulators so they wouldn't have to diversify on their own," said Hrabal.
Hrabal founded the company is 2008.
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