They are not ETFs. They are not ETNs. They are MacroShares, and after today, they are gone. Bye-bye MacroShares.
Back on May 15, MacroMarkets announced that today, June 25, would be the last day of trading for MacroShares $100 Oil Up (UOY) and MacroShares $100 Oil Down (DOY). The final value of the trusts will be calculated based on the August NYMEX light sweet crude oil futures contract.
Today, possibly for the first time in their life, both products are trading very close to their Net Asset Value. If you still own any MacroShares, you should be able to get out today, assuming you can overcome the bid/ask spreads.
As I reported back in May, today’s closing is being triggered by the failure of the trust to attract $50 million in assets. The “original” MacroShares Oil Up and Oil Down pair were forced to close when the price of oil skyrocketed in 2008, driving the value of Claymore/MacroShares Oil Down (former ticker = DCR) to zero.
Additional background on DOY and UOY:
- January 30, 2009 ridiculous 4:1 split
- February warning to investors that they do not behave like ETFs
- First appearance in ETF Deathwatch (March 2009)
- They are not ETFs