HOLDRs are holding company depositary receipts and narrowly focused. The portfolio holdings never change.
“We believe ETFs offer significant advantages over HOLDRs in their ability to evolve with a dynamic underlying index,” Phillips stated in a press release. “This in turn leads to enhanced diversification and broader-based representation of a market or industry segment.”
Each of the new ETFs will have an annual expense ratio of 0.35%.
- Market Vectors Biotech ETF (NYSEArca: BBH) will replace Biotech HOLDRS (NYSEArca: BBH). BBH which will track the 25 largest and most liquid companies in the biotechnology sector.
- Market Vectors Money-Center Bank ETF (NYSEArca: RKH) will replace Regional Bank HOLDRS (NYSEArca: RKH). RKH will include the top 25 banks.
- Market Vectors Oil Services ETF (NYSEArca: OIH) will replace Oil Services HOLDRS NYSEArca: OIH). OIH will hold the top 25 companies in the oil services industry.
- Market Vectors Pharmaceutical ETF (NYSEArca: PPH) will replace Pharmaceutical HOLDRS (NYSEArca: PPH). PPH will track the top 25 drug companies.
- Market Vectors Retail ETF (NYSEArca: RTH) will replace Retail HOLDRS (NYSEArca: RTH). RTH will cover the 25 largest, most liquid retail companies.
- Market Vectors Semiconductor ETF (NYSEArca: SMH) will replace Semiconductor HOLDRS (NYSEArca: SMH). SMH will hold the top 25 U.S.-listed semiconductor companies.
For more information on new ETFs, visit our new ETFs category.
Max Chen contributed to this article.