System and method for ETF investing
AssigneeETF Labs, LLC
InventorSean P. Brennan
Life of this patent
Estimating the term…
Abstract
A system and method for ETF investing that provides a primary exchange traded fund (PETF) that comprises a plurality of shares, wherein the primary exchange traded fund comprises investments in a plurality of secondary exchange traded funds (SETF). The system and method enable intraday, or other periodic, trading of a variable number and type of ETFs through a single ETF, based on one or more categories and factors including, but not limited to, real-time NAVs.
Claims13
A computer-implemented method of providing investment in a number of pre-existing exchange traded funds (ETFs) through a single ETF, comprising the steps of:
- a) providing an automatically-managed primary exchange traded fund (PETF) having a plurality of PETF shares that are traded intraday, wherein the PETF has an intraday net asset value (NAV), and consists of shares of a plurality of pre-existing ETFs that are designated as secondary exchange traded funds (SETF), each SETF having a NAV that is determined intraday, and each SETF having a plurality of SETF shares that can be traded intraday;
- b) automatically selecting, according to preset rules, the SETFs in the PETF based on a defined category or pre-existing ETFs;
- c) using a programmed computer to make intraday purchases and sales of shares of the selected SETFs;
- d) using a programmed computer to calculate a real-time intraday NAV of the PETF the calculation made according to a formula that is based on the real-time intraday NAVs of all of the selected SETFs;
- and
- e) selling PETF shares intraday at the calculated real-time NAV of the PETF.
A computer-implemented method of providing investment in a number of pre-existing exchange traded funds (ETFs) through a single ETF, comprising the steps of:
- a) providing an automatically-managed primary exchange traded fund (PETF) having a plurality of PETF shares that are traded intraday, wherein the PETF has an intraday net asset value (NAV), and consists of shares of a plurality of pre-existing ETFs that are designated as secondary exchange traded funds (SETF), each SETF having an NAV that is determined intraday, and each SETF having a plurality of SETF shares that can be traded intraday;
- b) using a programmed computer to automatically select, according to preset rules, the SETFs in the PETF based on the NAVs of pre-existing ETFs;
- c) using a programmed computer to make intraday purchases and sales of shares of the selected SETFs;
- d) using a programmed computer to calculate the real-time intraday NAV of the PETF, the calculation made according to a formula that is based on the real-time intraday NAVs of all of the selected SETFs;
- and
- e) selling PETF shares intraday at the calculated real-time NAV of the PETF.
Dependencies are inferred from the claim text.