Actually, these instruments reflect a more optimistic outlook than you think. Their price also reflects the risk of an early termination and the fact that the high expenses will eat away at the NAV of the vehicles: blog.lucidrealty.com/2.../
Is There a Bad Bet with the MacroShares Housing Funds? [View article]
There are actually several subtleties with these instruments. For one, the expenses are likely to be higher than 1.25%. I cover the issues here: blog.lucidrealty.com/2.../
Residential Housing ETFs Reflect Recovery Expectations [View article]
Is There a Bad Bet with the MacroShares Housing Funds? [View article]