How do MacroShares differ from ETFs and ETNs?
Although there are some similarities, they differ in several important ways: • MacroShares are structured as trusts. They are exchange traded products registered under the Securities Act of 1933 and the Securities Exchange Act of 1934, and are subject to SEC prospectus delivery and periodic reporting requirements. MacroShares represent an undivided interest in the assets of a trust. Trust asset balances change over time according to movements in the reference index, and they generate interest income from short-term U.S. government obligations and repurchase agreements held as collateral. In contrast, ETFs are structured as investment companies under The Investment Company Act of 1940, and must purchase, hold and manage financial instruments in order to replicate an index. ETNs are unsecured promissory notes. • Every MacroShares product strategy is comprised of a pair of securities that trade separately in the secondary market: Up and Down. The Up security holders own an economic intere
