Housing: Pure Plays Both Up And Down With ETFs
Sam Masucci, MacroMarkets; Eric Landry, Morningstar; and CNBC’s Bob Pisani discuss how the homebuilder sentiment fits into the greater oulook for the housing market. The group discusses the S&P/Case-Shiller index, the MACROSHARES HOUSING UP (UMM) ETF, and the MACROSHARES HOUSING DOWN (DMM) ETF.
The Major Metro Housing Up (UMM) and Major Metro Housing Down (DMM) are designed to deliver 300% and -300% of the return of the S&P/Case-Shiller Home Price 10 Index over the next five years. They will achieve that return not by buying actual houses, but by following MacroShares’ patented “teeter-totter” product structure.
Under that structure, the Up and Down Macros hold Treasury securities as their sole asset. As the benchmark index moves up or down, those Treasuries are transferred back and forth between the Macros. The structure allows MacroShares to launch products tied to any reference price, including previously uninvestable benchmarks like national home prices.
The Euro’s Demise Has Been Set in Motion: Are you protected?
"Nationalism will emerge. Healthier countries will not see fit to spend their hard earned money to bail out their less responsible neighbors."
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