USRE44625EExpiredUtility

System and method for ETF investing

Individually held — no corporate assignee on recordPriority: Jul 19, 2005Filed: Oct 5, 2011Granted: Dec 3, 2013

Est. expiryJul 19, 2025(expired)· nominal 20-yr term from priority

Inventors:Sean Brennan

G06Q 40/06G06Q 40/04

PatentIndex Score

Cited by

References

Claims

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.

Claims

exact text as granted — not AI-modified

What is claimed is:

1. 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.

2. The method of claim 1 , wherein each of said pre-existing ETFs has an intraday NAV, and the pre-existing ETFs are ranked based on their respective intraday NAVs.

3. The method of claim 2 , wherein said defined category of pre-existing ETFs is defined as ETFs having an intraday NAV that is within a top tier of said pre-existing ETFs based on said ranking.

4. The method of claim 3 , wherein said pre-existing ETFs are ranked from highest to lowest intraday NAV and said top tier comprises the 40 or fewer highest ranked pre-existing ETFs.

5. The method of claim 3 , wherein said pre-existing ETFs are ranked from highest to lowest intraday NAV and said top tier comprises the 40 or fewer lowest ranked pre-existing ETFs.

6. The method of claim 1 , wherein said defined category is defined by one or more factors selected from a group consisting of intraday NAV, sector, capitalization, geography, asset quality, whether an ETF is indexed or closed end, rating, security type, class, equity type, index type, and trading trend.

7. The method of claim 1 , wherein the selection of the SETFs in the PETF is made based on the intraday NAVs of said pre-existing ETFs.

8. The method of claim 1 wherein shares of the SETFs are purchased and sold at sub-minute intervals.

9. The method of claim 1 wherein the selection of the SETFs in the PETF takes place intraday.

10. 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.

11. The method of claim 1 wherein the selection of the SETFs in the PETF is made based only on the NAVs of said pre-existing ETFs.

12. The method of claim 11 wherein the selected SETFs are those with the highest NAVs.

13. The method of claim 1 wherein the intraday purchases and sales of shares of the SETFs are made at intervals as short as 30 seconds or less.

14. A non-transitory computer-readable storage medium for storing a computer program for managing trading of electronically traded funds (ETFs) through a single primary exchange traded fund (PETF), which, when executed by a computer, performs a method, the method comprising:
(a) providing an automatically-managed primary exchange traded fund (PETF) having a plurality of PETF shares that are traded intraday, with the PETF having 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 of pre-existing ETFs; (c) making intraday purchases and sales of shares of the selected SETFs using a programmed computer; (d) calculating a real-time intraday NAV of the PETF, the calculation made according to a formula based on at least the real-time intraday NAVs of all of the selected SETFs using the programmed computer; and (e) selling PETF shares intraday at the calculated real-time NAV of the PETF.

15. The non-transitory computer-readable storage medium as recited in claim 14, wherein, the computer program calculates the intraday share price of the PETF at the time of intraday trading.

16. The non-transitory computer-readable storage medium as recited in claim 15, wherein the ETFs in which the PETF is invested include a predetermined number of ETFs having a highest or lowest NAV.

17. The non-transitory computer-readable storage medium as recited in claim 15, wherein the ETFs in which the PETF is invested include a predetermined number of ETFs having a highest or lowest NAV in a predetermined market sector.

18. The non-transitory computer-readable storage medium as recited in claim 15, wherein the ETFs in which the PETF is invested includes a predetermined number of indexed ETFs having a highest or lowest NAV.

19. The non-transitory computer-readable storage medium as recited in claim 15, wherein, the ETFs in which the PETF is invested include a predetermined number of closed-end ETFs having a highest or lowest NAV.

20. The non-transitory computer-readable storage medium as recited in claim 15, wherein one or more factors for a selection of ETFs in which the PETF is invested are selected from a group consisting of intraday NAV, sector, capitalization, geography, asset quality, whether the ETF is indexed or closed-end, rating, security type, class, equity type, index type, or trading trend.

21. A non-transitory computer-readable storage medium for storing a computer program for the managing trading of electronically traded funds (ETFs) through a single primary exchange traded fund (PETF), which, when executed by a computer, performs a method, the method, comprising:
(a) providing an automatically-managed primary exchange traded fund (PETF) having a plurality of PETF shares that are traded intraday, with the PETF having 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) automatically selecting using a programmed computer, according to preset rules, the SETFs in the PETF based on at least the NAVs of pre-existing ETFs; (c) making intraday purchases and sales of shares of the selected SETFs using the programmed computer; (d) calculating the real-time intraday NAV of the PETF using the programmed computer, the calculation including being made according to a formula based on at least 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.

22. The non-transitory computer-readable storage medium as recited in claim 21, wherein the other predetermined securities types include at least stocks or bonds.

23. The non-transitory computer-readable storage medium as recited in claim 22, wherein, the computer program calculates the intraday share price of the PETF at the time of intraday trading.

24. The non-transitory computer-readable storage medium as recited in claim 23, wherein ETFs in which the PETF is invested include a predetermined number of ETFs having a highest or lowest NAV.

25. The non-transitory computer-readable storage medium as recited in claim 23, wherein the ETFs in which the PETF is invested include a predetermined number of ETFs having a highest or lowest NAV in a predetermined market sector.

26. The non-transitory computer-readable storage medium as recited in claim 23, wherein ETFs in which the PETF is invested include a predetermined number of indexed ETFs having a highest or lowest NAV.

27. The non-transitory computer-readable storage medium as recited in claim 23, wherein the ETFs in which the PETF is invested include a predetermined number of closed-end ETFs having a highest or lowest NAV.

28. The non-transitory computer-readable storage medium as recited in claim 23, wherein one or more factors for a selection of ETFs in which the PETF is invested are selected from a group consisting of intraday NAV, sector, capitalization, geography, asset quality, whether an ETF is indexed or closed-end, rating, security type, class, equity type, index type, or trading trend.

29. A computer programmed with a computer program to manage the trading of electronically traded funds (ETFs) through a single primary exchange traded fund (“PETF), when the computer program is executed by the computer, performs a method, the method comprising:
(a) providing an automatically-managed primary exchange traded fund (PETF) having a plurality of PETF shares that are traded intraday, With the PETF having 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) automatically selecting using a programmed computer, according to preset rules, the SETFs in the PETF based on at least the NAVs of pre-existing ETFs;
(c) making intraday purchases and sales of shares of the selected SETFs using the programmed computer;
(d) calculating the real-time intraday NAV of the PETF using the programmed computer, with the calculation including being made according to a formula based on at least 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.

30. The computer as recited in claim 29, wherein, the computer calculates the intraday share price of the PETF at the time of intraday trading.

31. The computer as recited in claim 30, wherein the ETFs include a predetermined number of ETFs having a highest or lowest NAV.

32. The computer as recited in claim 30, wherein the ETFs in which the PETF is invested include a predetermined number of ETFs having a highest or lowest NAV in a predetermined market sector.

33. The computer as recited in claim 30, wherein the type of ETFs in which the PETF is invested include a predetermined number of indexed ETFs having a highest or lowest NAV.

34. The computer as recited in claim 30, wherein, the ETFs in which the PETF is invested include a predetermined number of closed-end ETFs having a highest or lowest NAV.

35. The computer as recited in claim 30, wherein one or more factors for a selection of ETFs in which the PETF is invested are selected from a group consisting of NAV, sector, capitalization, geography, asset quality, whether an ETF is indexed or closed-end, rating, security type, class, equity type, index type, or trading trend.

36. A system for managing trading of electronically traded funds (ETFs) through a single primary exchange traded fund, the system comprising:
(a) a computer; (b) a memory communicatively connected to the computer and storing a computer program which, when executed by the computer, performs a method, the method comprising:
(1) 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;
(2) automatically selecting, according to preset rules, the SETFs in the PETF based on a defined category or pre-existing ETFs;
(3) using a programmed computer to make intraday purchases and sales of shares of the selected SETFs;
(4) 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
(5) selling PETF shares intraday at the calculated real-time NAV of the PETF.

37. The method of claim 36, wherein each of said pre-existing ETFs has an intraday NAV and the pre-existing ETFs are ranked based on their respective intraday NAVs.

38. The system of claim 36, wherein said defined category of pre-existing ETFs is defined as ETFs having an intraday NAV that is within a top tier of said pre-existing ETFs based on said ranking.

39. The system of claim 36, wherein said pre-existing ETFs are ranked from highest to lowest intraday NAV and said top tier comprises the 40 or fewer highest ranked pre-existing ETFs.

40. The system of claim 36, wherein said pre-existing ETFs are ranked from highest to lowest intraday NAV and said top tier comprises the 40 or fewer lowest ranked pre-existing ETFs.

41. The system of claim 36, wherein said defined category is defined by one or more factors selected from a group consisting of intraday NAV, sector, capitalization, geography, asset quality, whether an ETF is indexed or closed end, rating, security type, class, equity type, index type, and trading trend.

42. The system of claim 36, wherein the selection of the SETFs in the PETF is made based on the intraday NAVs of said pre-existing ETFs.

43. The system of claim 36 wherein shares of the SETFs are purchased and sold at sub-minute intervals.

44. The system of claim 36 wherein the selection of the SETFs in the PETF takes place intraday.

Join the waitlist — get patent alerts

Track USRE44625E — get alerts on status changes and closely related new filings.

We store only your email — no account needed. See our privacy policy.