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MacroShares Major Metro Housing 3X ETF’s To Begin Trading Today (UMM, DMM)

Today marks the first time investors will be able to purchase exchange traded products linked to U.S. Housing. MacroMarkets says it is planning for shares of the MacroShares Major Metro Up (UMM) and the MacroShares Major Metro Down (DMM) to start trading today on the New York Stock Exchange.

MacroShares Major Metro Housing allow investors to express a bullish or bearish view on the movement of the S&P/Case-Shiller Composite-10 Home Price Index.

The underlying value (UV) of UMM tracks the percentage change of the index with three times leverage. The market price of UMM reflects other factors, including consensus expectations of the cumulative return of S&P/Case-Shiller Composite-10 Home Price Index, plus potential quarterly net income distributions, over the remaining term of the security.

The UV of DMM tracks the percentage change of the index in an inverse manner with three times leverage. The market price of DMM reflects other factors, including consensus expectations of the cumulative return of S&P/Case-Shiller Composite-10 Home Price Index, plus potential quarterly net income distributions, over the remaining term of the security.

MacroShares Major Metro Housing funds are collateralized via a trust secured by investments in short-term U.S. Government obligations, overnight repurchase agreements secured by Treasuries and cash.

UMM and DMM are benchmarked to the S&P/Case-Shiller Composite-10 Home Price Index, the most widely watched home price index in the world, which is a weighted measure of home price changes in the following metropolitan areas: Boston, Chicago, Denver, Las Vegas, Los Angeles, Miami, New York, San Diego, San Francisco, and Washington, D.C.

Globe Newswire reports: “Our current financial crisis is largely due to a failure to manage housing risk. At approximately $20 Trillion, U.S. housing is a large and important asset class that has suffered from the lack of liquid, transparent markets. The launch of Major Metro Housing is a major step in filing this void. For the first time, the market will have available exchange traded benchmarks as an indication of where investors believe U.S home prices are headed. This sentiment will be expressed through the traded prices of UMM and DMM, which will be available globally through the public markets,” commented MacroMarkets Chief Economist and co-founder, Robert Shiller.”

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