MacroShares Funds Dip Into Housing Market

MacroShares is taking another swing at the up/down market movement, this time with exchange traded funds (ETFs) that track the upward and inverse movement of U.S. home prices.

MacroShares Major Metro Housing Up (UMM) and MacroShares Major Metro Housing Down (DMM) were filed with the Securities and Exchange Commission (SEC). When launched, they’ll be paired securities with a 10-year term and a 200% leverage factor.

Jon C. Ogg for 24/7 Wall Street lists which cities they will be tracking: Boston, Chicago, Denver, Las Vegas, Los Angeles, Miami, New York, San Diego, San Francisco and Washington, D.C. Clearly, these are some of the most expensive housing markets in the United States.

These funds will be another installment in MacroShares’ unique exchange traded securities. Their previous offerings were the MacroShares Oil Up (UCR) and MacroShares Oil Down (DCR).

The funds contained a termination clause that said they would close if the price of oil topped $111 for three consecutive days. For now, they’re trading as they normally would. On June 25, they’ll cease trading, and on July 3, fund shareholders will receive payouts based in the fund’s net asset value (NAV) that day.

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