House price ETF´s Macroshares Major Metro Hsg Up / Down started trading today
- Thread starter ASusilovic
- Start date
As I have said earlier these "products" are pure scam/ponzi/casino that will track absolutely NOTHING.
The design of the product (shifting treasuries back and forth between trusts) is fundamentally flawed and does not allow any form of arb to ensure prices stay close to NAV, even on the NAV rebalancing day. The ONLY time price equals NAV will be the day when those terminate in 5 years or earlier (see their dead oil shares, UOY and DOY). And what's with the 3X leverage when the product tracks nothing? It's then simply a marketing ploy by the sponsor to cash in on the 3X buzz to the detriment of naive retail investors who buy those shit.
Also what's with the hidden fees? They cleverly hid a $1.2 million per year FIXED FEE ON TOP OF THE 0.95% expense ratio! Read the fine print of their prospectus and you'll be amazed. With $20 million asset as they have now it's more than 6% a year in fees.
So let me get this straight, you wanna pay 6% a year to buy a "product" that tracks absolutely nothing. Hmmm, enough said.
These "products" are a total disgrace to the ETF market. All previous offerings by their sponsor, macro market, failed, and these ones will undoubtedly fail too. I'm just amazed to see that those greedy idiots haven't thrown in the towel yet.
The design of the product (shifting treasuries back and forth between trusts) is fundamentally flawed and does not allow any form of arb to ensure prices stay close to NAV, even on the NAV rebalancing day. The ONLY time price equals NAV will be the day when those terminate in 5 years or earlier (see their dead oil shares, UOY and DOY). And what's with the 3X leverage when the product tracks nothing? It's then simply a marketing ploy by the sponsor to cash in on the 3X buzz to the detriment of naive retail investors who buy those shit.
Also what's with the hidden fees? They cleverly hid a $1.2 million per year FIXED FEE ON TOP OF THE 0.95% expense ratio! Read the fine print of their prospectus and you'll be amazed. With $20 million asset as they have now it's more than 6% a year in fees.
So let me get this straight, you wanna pay 6% a year to buy a "product" that tracks absolutely nothing. Hmmm, enough said.
These "products" are a total disgrace to the ETF market. All previous offerings by their sponsor, macro market, failed, and these ones will undoubtedly fail too. I'm just amazed to see that those greedy idiots haven't thrown in the towel yet.
Take a look right now. The up UMM shares are already at a 30% discount to NAV only after 5 days of trading!
Seriously, how could the SEC approve these crazy "ETFs" in the first place?!
Seriously, how could the SEC approve these crazy "ETFs" in the first place?!
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