What happened to the B2B Internet HOLDRs (BHH) exchange traded fund (ETF) since the Internet boom? It used to be investing in one of the business-to-business companies was a sure fire ticket to great earnings. Joanne Von Alroth for Investor’s Business Daily reports that the 7-year-old ETF is now a grouping of 4 internet B2B companies. They include Checkfree Corp., Ariba Inc. (ARBA), Internet Capital Group Inc. (ICGE), and Verticalnet Inc. (VERT). In March 2000, BHH reached a record high price of $101.07 and now it is trading around 0.46 cents.
A low number of holdings in a thinly traded fund equals risk. CheckFree’s performance was vital to this funds success, and recently the Atlanta-based firm was bought by Fiserv (FISV). Checkfree made up 75% of BHH’s holdings. VERT has received a letter from Nasdaq that they are subject to delisting.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.