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Starting later this month, you’ll be able to do precisely that by buying into New York Stock Exchange-traded funds tied to the movement of house prices – up or down – in major metropolitan real estate markets. Called “Macro shares,” and their values will move based on home prices as measured by the Standard & Poor’s/Case-Shiller index. If you think house prices in 10 key markets are likely to decline over the next several years, you can buy “down” Macro shares from your stock broker.
The ten metropolitan areas the index will track for the Macro funds are: Los Angeles, San Diego, San Francisco, New York, Miami, Las Vegas, Denver, Chicago, Boston and Washington DC. The money you pay to buy shares is invested in short-term Treasury securities or income-earning deposits. Interest income pays for administration of the funds and may even yield dividends for Macro holders.
