Why isn’t there a Case-Shiller ETF?

I met a college friend, an economist who works at a REIT, for lunch. The discussion turned to Case-Shiller ETFs, how there aren’t any. I speculated that the difficulty of bridging the huge liquidity gap between an ETF and residential real estate has something to do with it. In the case of the paired funds that MacroShares was slated to launch but never did, maybe the amount of buffer needed would have been too big.

Basically, the arbitrage mechanism behind a Case-Shiller index would have such high liquidity premium that it would hardly track the real thing.

Unverified, but related: my roommate has informed me that the GLD ETF is currently worth a lot more than its contractual gold equivalent.

2 Responses to “Why isn’t there a Case-Shiller ETF?”

  1. joanthanK says:

    macroshares were designed to enable access to asset classes and exposures that tradiotnal ETFs can’t, including those with “liquidity gaps” like housing. word is that the case-shiller macroshares IPO launch was postponed due to the awful market conditions in Q4, the filing is still there so look for them this year.

  2. Matt S says:

    thanks for the insight…