Patent ID: 7937316

Claim:
A method for administering a multi-basket exchange traded fund (ETF), comprising: publishing an electronic portfolio composition file on a non-transitory computer readable medium by a computing system of a fund advisor that administers the exchange traded fund (ETF), the portfolio composition file specifying a creation basket of assets and a redemption basket of assets, wherein the redemption basket and the creation basket specify different assets; electronically receiving a creation request from a first authorized participant at the computing system of the fund advisor; responsive to the creation request, initiating an ETF creation transaction on a primary market by the computing system of the fund advisor, the ETF creation transaction providing shares of the ETF from the fund advisor to the first authorized participant in exchange for the assets in the creation basket specified in the published portfolio composition file; electronically receiving a redemption request from a second authorized participant at the computing system of the fund advisor; responsive to the redemption request, initiating an ETF redemption transaction on the primary market by the computing system of the fund advisor, the ETF redemption transaction providing the assets in the redemption basket specified in the published portfolio composition file to the second authorized participant in exchange for shares of the ETF; and publishing a holdings basket that represents the assets held in the ETF.