After months of anticipation and behind the scenes maneuvering, the MacroShares Major Metro Housing Down Trust (DMM) and MacroShares Major Metro Housing Up Trust (UMM) are now trading.
The new trusts are the first exchange-traded products (ETPs) that aim to give investors exposure to residential real estate in key cities within the U.S. housing market.
The MacroShares Metro Housing ETPs are based on the S&P/Case-Shiller Composite-10 Home Price Index, a closely watched indicator of U.S. home prices in the 10 largest cities. The index measures single-family housing prices.
Trusts Work in Tandem
Both DMM and UMM are paired trusts that work as follows: When MacroShares Major Metro Housing Up are created, an equal number of MacroShares Major Metro Housing Down are also created. UMM funds are invested in the “Major Metro Housing Up Trust.” DMM investor funds are invested in a separate “Major Metro Housing Down Trust”.