We have received some inquiries related to this post on the subject of TRAKRs.
Brad Zigler in the Journal of Indexes (or should it be Indices?) has a useful article that seeks to explain the world of TRAKRs. From the beginning of the article:
What? You Don’t Know What TRAKRs Are?
Well, TRAKRs are futures contracts. Not like the futures contract of yore, mind you; these are radically different. Your first clue to their distinction is their somewhat tortured acronym: Total Return Asset ContRacts.
Developed by Merrill Lynch and traded on the Chicago Mercantile Exchange’s electronic Globex platform, TRAKRs offer retail investors the cost-effective equity, currency and commodity exposure for which traditional futures are famed, absent the onus of leveraged loss. One TRAKR, as well, is a hedge fund proxy, an exposure that just can’t be found in traditional futures products.
You can also visit the CME site for more information.