For the most part, ETFs are pretty similar regardless of which issuer is behind the fund. But as many investors know, there’s one notable exception to this rule. The HOLDRS products from Merrill Lynch are similar to traditional ETFs in many ways, but also feature some nuances that make them very different in others. HOLDRS stands for Holding Company Depository Receipts, and are securities that represent an investor’s ownership in the common stock or ADRs of specified companies in a particular industry. HOLDRS are designed to offer investors a way to achieve exposure to a basket of stocks in a cost-efficient manner while preserving ownership benefits related to the underlying stocks.
Below, we profile five facts about HOLDRS every investor should know before making an investment (fore more ETF tips and education, sign up for our free ETF newsletter): [click to continue…]
For investors looking to make a play on the technology sector through ETFs, there are a number of options offering varying degrees of exposure. The PowerShares QQQ Trust (QQQQ) tracks the Nasdaq 100 Index, meaning it is tilted heavily towards the technology sector (about 65% of its holdings), but maintains moderate exposure to health care and consumer discretionary companies as well. For investors looking to make a pure play on technology, there are several broad-based technology funds, such as XLK and IYW, that invest in various technology-related companies. But there are also technology ETFs offering far more specialization, including funds focusing on software (IGV and PSJ), internet architecture (IAH), nanotechnology (PXN), and several other. [click to continue…]
After a strong earnings report from Intel on Tuesday (the company beat the Street’s estimates by seven cents) all eyes will now be on IBM and Google to see if they carry the positive momentum into the fourth quarter. Confirmation of a recovery by these two bellwethers will add further confidence to those who believe [...]
