DCR Trading at a 30,800% Premium to NAV!

By Jim Wiandt

One thing Matt Hougan fails to note is that in the frenzied final days of DCR and UCR, assets have soared to nearly $1/2 billion!

According to the latest update on www.macroshares.com (which has become one of the most fun ETF-related places to visit over the past month), UCR (that's the Up Oil Shares, has over $465 million in assets. DCR (the down Oil Shares) finds itself a less popular destination these days with oil at $120. The down shares have $75,000 in assets, I'd also note that according to the Macroshares site, THAT side is trading at a 30,800% premium to the 7.78% discount the up shares are trading at.

Hougan - why don't we put together a little roundtable to talk about what's going on here? That would HAVE to make a fun little IU.com feature.

All indications are that the MACRO guys are riding out the storm amidst of firestorm of criticism (some of it from one of our own sometime writers). And not only that, they're putting the premiums and discounts right front and center on their home page. I hope they make it.

I don't care what any of you say, I still think they ideas behind these products are genius and that time will bear it out. And man, if they made it through all the verbal abuse that went flying around the oil MACROs and still managed to put together a revenue stream, I think it might be look out when the real estate comes, and NO ONE has ANY way really to access those markets otherwise. THAT (macro hedges) are what these things are all about. And you may have to pay for it. But that's the way the market works, and being able to beats...nothing.

FYI, the futures ARE trading on the CME, but have not done much. ETFs, I suspect, could be different.

So yeah, I'll be watching the relaunch of Oil and then the rest of the really fun stuff that will be coming out from them, because, delightfully, it looks like it WILL be coming. Can that structure work?