Six Merrill Lynch HOLDRS exchange traded securities stopped trading as planned on Tuesday. The funds were officially transferred and changed into Van Eck Global exchange traded funds, and the new funds will begin trading Wednesday.
Trading in the biotech, banking, oil services, pharmaceuticals, retail and semiconductor HOLDRs halted on Tuesday, according to Van Eck. [HOLDRS Making Transition to Market Vector ETFs]
The transfer of the six funds was first announced on Aug. 12. [Van Eck, Merrill Lynch in Agreement Over HOLDRS]
On Tuesday, Van Eck announced the expiration of the exchange offers for any and all outstanding receipts of the six HOLDRS. All terms and conditions have been satisfied for each of the six exchange offers, according to a statement. Van Eck, which oversees the Market Vectors ETFs, said it has accepted all tendered HOLDRS associated with the offers. A total of nearly 70% of the value of the six HOLDRS was accepted, or about $2.3 billion.
“We are extremely pleased with the outcome, and feel that the exchange offers have provided an important benefit to investors,” said Adam Phillips, managing director of ETFs at Van Eck Global. The firm believes that ETFs “offer a better investment vehicle when compared to the HOLDRS structure.”
On Dec. 21, the six funds will begin trading under the Van Eck moniker:
- Market Vectors Biotech ETF (NYSEArca: BBH)
- Market Vectors Money-Center Bank ETF (NYSEArca: RKH)
- Market Vectors Oil Services ETF (NYSEArca: OIH)
- Market Vectors Pharmaceutical ETF (NYSEArca: PPH)
- Market Vectors Retail ETF (NYSEArca: RTH)
- Market Vectors Semiconductor ETF (NYSEArca: SMH)
For more information on ETFs, visit our ETF 101 category.
Max Chen contributed to this article.
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