Last week, the price of oil topped $111 for three consecutive days, setting off a termination trigger for two unusual exchange traded funds (ETFs).
The last trading day for MacroShares Oil Down (DCR) and MacroShares Oil Up (UCR) will be June 25 and will liquidate the week after that.
So, what’s next? MacroShares is not going away. In fact, the company considers their up/down oil funds a success, with $300 million in assets, reports Mathew Hougan for Index Universe.
They’ll be issuing a new round of Macros with the starting price set at $100 a barrel. The prospectus for the down trust is here, and the prospectus for the up trust is here.
Hougan wonders if people will bite on these new funds, as opposed to just going after the other oil-related ETF products out there.
Meanwhile, Hougan reports that the MacroMarkets people are developing a paired trust tied to medical cost inflation, as well.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.