It's a dying product that tracks absolutely nothing. That's why no one's buying or selling those sh$t. Just take a look today which is an index release day. However the up shares is still at 26% premium. The scammers at macroshares can spin the inherent flaw of their product design into "future price discovery" or whatever crap they spit out, but that doesn't change the fact that you are paying 10% a year in FEES ONLY to buy a product that tracks nothing. Absolutely disgusting.
Is there any future contract out there that ever gained any significant market volume WITHOUT being able to arbitrage the derivative with an underlying, be it baskets of stocks, crude oil delivery or cash settlements for interest rates? These housing ETFs just like the housing future counterparts can not be arb'd in any efficient way (homes are too illiquid, unlike bonds, currencies etc.) hence they will never gain any following. Another fantasy product, doomed to fail. Anybody remember THIS? http://goliath.ecnext.com/coms2/gi_0199-1291222/Chicago-Mercantile-Exchange-sets-Feb.html
huge misunderstanding of whats going on. of course month to month prices will actually increase a bit at some pt and even year over year will increase a little at some pt in 6-12 monhts. housing is down 40% or so in 3 years so of course we'll get some type of bottoming. BUT THE FALLACY IS PRICE INCREASES WILL BE LIKE WATCHING PAINT DRY BUT THE STOCK MKTS 55% RISE IS SAYING PRICES OF HOUSE PRICES WILL SOAR TO ALL TIME HIGHS IN 2-3 YEARS. a reality collision course is near
If I understand these correctly, they are SUPPOSED to keep changing from premium to discounts as people change their views. You are trading people's housing expectation and not necessarily house prices or the case shiller index
One of the New York exchanges tried something similar in the late-1980's.....and yes, it never gained a toehold. New contracts tend to be launched after the trend that brings about the "need" for the contract has run its course; i.e. that type of contract tends to be launched just as deflaton is about to emerge.