Commodity Exchange Traded Fund Design

The combination of Exchange-Traded Funds(ETF)and futures enriches the variety of investment products,expanding the asset allocation toolkit,and makes it all together for funds and futures.It helps for the development of both of the fund market and the futures market.This paper is based on the CFMMC China Commodity Futures Index,considering investor appeal and product innovation,and a product of ETF comes into being.It aims to provide a feasible design idea and explore the connotation of the product of commodity futures index ETF,so that investors have a clearer understanding of this new investment product.Qualitative analysis is the main method of product design,and quantitative analysis works as a supplement.This article can be divided into four main parts: The first part is about the theoretical introduction of commodity indexes,exchange-traded funds,and so on.The second part is the preparation of product design.In this part,the product requirements,product positioning and effects are analyzed,and the necessity and feasibility of product design are demonstrated.The third part is the product design plan.At first,the target index and investor type are analyzed,and then product parameters,operation mode,and product pricing are argued,and the relative risks are identified and responded also,and finally an empirical simulation analysis is carried out through the data return test.The fourth part is about product marketing strategy.The importance of product quality is emphasized,and this part also provides several evaluation methods.For product promotion,this article gives a promotion strategy based on 4Cs marketing theory.