New ETFs track oil prices without futures

Investors can bet on the price of oil going up or down or hedge other investments with the securities.
JUL 02, 2008
By  D Hampton
MacroMarkets today introduced two American Stock Exchange-traded funds that capture the commodity performance of oil without making investments in oil or futures contracts, said Sam Masucci, president and CEO and co-founder of the firm, with Robert Shiller, professor of economics at Yale University. Investors can bet on the price of oil going up or down or hedge other investments with the securities, he said. The two ETFs, MacroShares Oil Up and Oil Down, started to trade with $20 million in seed capital from pension funds and other institutional investors, which Mr. Masucci declined to identify. MacroMarkets will transfer assets dollar-for-dollar between the Up and Down securities to replicate the change in the benchmark price of NYMEX light sweet crude oil, he said. MacroShares holds about 75% of its assets in 90-day Treasury bills and the rest in other short-term instruments. State Street Bank is custodian of the assets. Investors in the ETFs, trading under the symbols OUY and DOY, respectively, receive all the interest earned from the short-term investments, minus MacroShares expense, every three months, Mr. Masucci said. The securities’ structure avoids concern in Congress about commodity futures investors driving up oil price, because the securities invest only in short-term money-market instruments, not futures, Mr. Masucci said.

Latest News

Integrated Partners, Kestra welcome multigenerational advisor teams
Integrated Partners, Kestra welcome multigenerational advisor teams

Integrated Partners is adding a mother-son tandem to its network in Missouri as Kestra onboards a father-son advisor duo from UBS.

Trump not planning to fire Powell, market tension eases
Trump not planning to fire Powell, market tension eases

Futures indicate stocks will build on Tuesday's rally.

From stocks and economy to their own finances, consumers are getting gloomier
From stocks and economy to their own finances, consumers are getting gloomier

Cost of living still tops concerns about negative impacts on personal finances

Women share investing strengths, asset preferences in new study
Women share investing strengths, asset preferences in new study

Financial advisors remain vital allies even as DIY investing grows

Trump vows to 'be nice' to China, slash tariffs
Trump vows to 'be nice' to China, slash tariffs

A trade deal would mean significant cut in tariffs but 'it wont be zero'.

SPONSORED Compliance in real time: Technology's expanding role in RIA oversight

RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.

SPONSORED Advisory firms confront crossroads amid historic wealth transfer

As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.