A dirge is playing in the world of exchange traded funds (ETFs) as two housing related funds fall silent. The two funds, which track a Case-Shiller Index, were the only ETF play on residential housing prices.
Monday marked the final day of trading for MacroShares Major Metro Housing Up Trust (NYSEArca: UMM) and MacroShares Major Metro Housing Down Trust (NYSEArca: DMM), writes Jon C. Ogg for 24/7 Wall St. The two funds used to track U.S. home prices on the S&P/Case-Shiller Composite-10 Home Price Index.
The final distribution payments will be made to UMM and DMM shareholders on Jan. 6.
Both funds traded at low levels, with both UMM and DMM trading above 10,000 shares in only three of the last 90 days. Usually, a failure of a fund is seen as a bad sign for things to come for related ETFs, but on this occasion, it might have been an isolated occurrence. [What happens when an ETF closes.]
Every industry has its share of both wildly popular products alongside less successful offerings, and ETFs are no exception. Funds can fail to gain traction for any number of reasons that have nothing to do with the overall state of the ETF industry: a poorly timed launch, lack of marketing heft, little investor interest and so on. But rest easy: the ETF industry is thriving. [Other products that have landed with a thud.]
For more information on the real estate sector, visit our real estate category.
Max Chen contributed to this article.
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.