There are few alternatives for investors who want exposure to the residential housing market – real estate investment trusts (REITs) focus on commercial property, and homebuilders don’t give perfect exposure. Investors who want more direct access to housing prices could find these funds attractive.
MacroShares is also the name behind two up/down oil funds. The first incarnation liquidated after oil prices topped $111 for three consecutive days. Last July, they launched a second set of up/down oil funds: MacroShares $100 Oil Up (UOY) and MacroShares Oil Down (DOY).
Just as their predecessors had been, UOY and DOY are paired products that track the price movements of West Texas intermediate oil. The starting price for a share is $25, representing one-quarter of the benchmark oil price. As the price rises and falls, assets are transferred back and forth dollar-for-dollar between the Up and Down trusts.
Yesterday, the Case-Shiller Index of 20 major cities fell 18.6% from a year ago in February.
