“We believe that the new ETFs should provide a better representation of each of the respective target markets than what the HOLDRS with their current limitations can provide,” according to Deutsche Bank.

“In addition, some of the new ETFs may present considerable risk/return differences as compared to those of the six HOLDRS,” Deutsche Bank analysts said in the report. “Most of these differences arise from diversification issues affecting the HOLDRS which the new ETFs will aim to overcome.”

For more information on ETFs, visit our ETF 101 category.

Max Chen contributed to this article.