InvestmentNews reported Friday that MacroMarkets LLC will be closing its oil funds. The MacroShares $100 Oil Up Trust (NYSE Arca: UOY) and the MacroShares $100 Oil Down Trust (NYSE Arca: DOY) will cease trading on June 25, with distribution payments made to shareholders on July 6, the article said.
The trusts hold Treasuries and assets shift between them proportionate to the movement of the price of oil—assets flow into UOY when the price rises, and into DOY when it falls.
These are not the first MacroShares oil products to be terminated. MacroShares closed down its initial Up and Down oil Macros in June 2008, after the skyrocketing price of oil shoved all the assets into the existing “Up” fund and left the existing “Down” fund with nothing.
UOY and DOY, which were launched as replacements of those original funds, are being closed for a different reason: a lack of enthusiasm among investors.
Full Story: http://www.indexuniverse.com/sections/newsinfocus/5842-macromarkets-terminating-oil-updown-etps.html