Exchange traded fund with futures contract based assets
OwnerVictor Feldman, Sharon Karsten +2inventors
InventorsVictor Feldman, Sharon Karsten, Daniel Gramza, William Dale
Life of this patent
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Abstract
An exchange trade fund comprising: an amount of a commodity trading in a spot and futures market, wherein the commodity is deposited with one or more custodians in exchange for one or more creation units as assets of the fund; wherein each creation unit represents a plurality of shares of the fund; and wherein each creation unit is redeemable for an amount of the commodity equal to the net asset value of the creation unit plus interest and less fund expenses and wherein the assets of the fund are invested in futures contracts. Also disclosed is a method for creating an exchange traded fund and a method for facilitating trading of an exchange traded fund.
Claims69
An exchange traded fund comprising:
- an amount of a commodity, wherein the commodity is deposited with one or more custodians in exchange for one or more creation units as assets of the fund;
- wherein each creation unit represents a plurality of shares of the fund;
- and
- wherein each creation unit is redeemable for an amount of the commodity equal to the net asset value of the creation unit;
- and
- wherein the assets of the fund are invested in futures contracts
The exchange traded fund of claim 21 wherein the custodian banks and subcustodian banks are selected based on selection criteria.
The exchange traded fund of claim 22 wherein the selection criteria comprise one or more of the following:
- capitalization, credit rating, product offering, operational capabilities, investment yield, or current asset base exposure.
A method for converting one or more commodities tradable on a spot market and a futures market to shares of a fund tradable on a secondary market comprising:
- establishing an investment company;
- accumulating assets to the trust for the purchase of the one or more commodities;
- purchasing an amount of the one or more commodities with the assets;
- depositing the one or more commodities with one or more custodians;
- creating creation units comprising a plurality of shares, wherein the creation units are redeemable for an amount of the one or more commodities based on the net asset value of the creation unit;
- and
- issuing the creation units to investors;
- wherein the assets are used to acquire a position in one or more futures contracts derived from the one or more commodities.
A method for facilitating the trading of an exchange traded fund comprising:
- providing an exchange comprising a secondary market for shares of the fund;
- and
- wherein the exchange traded fund comprises:
- an amount of a commodity trading in a spot and futures market, wherein the commodity is deposited with one or more custodians in exchange for one or more creation units as assets of the fund;
- wherein each creation unit represents a plurality of shares of the fund;
- and
- wherein each creation unit is redeemable for an amount of the commodity equal to the net asset value of the creation unit;
- and
- wherein the assets of the fund are invested in futures contracts.
Dependencies are inferred from the claim text.