This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Two Housing Index ETFs Shut Down

Stocks in this article: UMMDMMRWR

NEW YORK ( TheStreet) -- As investors digest Tuesday's data from the Case-Shiller housing indexes, they will have one less tool to work with.

On Monday, MacroShares shuttered two ETFs that allowed investors to make bullish and bearish bets on the Case-Shiller Composite-10 Home Price Index.

The Major Metro Housing Up (UMM) ETF and Major Metro Housing Down (DMM) ETF, is the third paired ETF group from MacroShares to close down. MacroShares has also shelved two sets of oil funds since 2008, as structural problems and oil volatility sunk the pairs.

While investors pay particular attention to the release of housing data, UMM and DMM failed to capture its intended audience. These two funds recently reached an early termination trigger when their assets on deposit fell under $50 million.

According to the latest Case-Shiller report, U.S. home prices fell at a slower annual rate in October. While housing declines in major metropolitan areas do not appear to be getting worse, the data show that the indexes are flat when compared with the previous month.

The goal of MacroShares' funds was to allow investors to bet on the direction of the Case-Shiller indexes and the prospects for major metropolitan housing. The paired funds were unable to attract enough investor assets to continue their investment strategy.

The fate of the MacroShares funds should be of particular concern to ETF investors, who face an increasingly broad range of choices when selecting strategies. The failure of the paired-fund approach continues to raise concerns about the future of non-traditional ETF strategies.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,363.92 +168.50 0.98%
S&P 500 0.00 -2.75 -0.14%
NASDAQ 4,625.41 +59.2720 1.30%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs