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…]
With interest rates still hovering just above zero and growing concerns over an unavoidable uptick in inflation, many investors are anticipating that the Federal Reserve will have no choice but to raise rates from their historically low levels in the near future. Ben Bernanke, the Chairman of the Fed, recently unveiled a strategy to unwind and exit some of the many programs that the Fed rolled out after the market crash of 2008. These programs quickly grew the Fed’s balance sheet to over $2 trillion and Bernanke has vowed to shrink this number but he currently finds himself in a precarious position that is sure to alienate some no matter how the Chairman exits the programs. “If the Fed seeks to shrink its balance sheet quickly, Bernanke could be blamed for taking losses,” writes Kevin Hall. “If the Fed’s balance sheet stays large, critics may see this policy change as a subsidy in the payment of high interest rates to banks.” This delicate balancing act will be a difficult test for Bernanke, who must also juggle the threat of a double dip with the risks of inflation eroding the purchasing power of ordinary Americans and driving away foreign creditors. [click to continue…]
It’s baaaaaaaaack. Or maybe more accurately, swine flu never left.
The H1N1 virus, which has caused widespread concern on at least two occasions over the last year, is back in the headlines as many parts of the world begin to gear up for the traditional flu season. In recent days and weeks, we’ve seen a number [...]
Healthcare reform has been in the news a lot lately, with constant finger-pointing, debate, and competing versions of comprehensive bills. Although the passage of comprehensive reform appears to be less certain that it was only weeks ago, it remains likely that major changes are coming before the end of the year. While many specifics are [...]
The World Health Organization on Thursday informed its 11 member nations that it is declaring an H1N1 (aka “Swine Flu”) pandemic. The declaration of a flu pandemic, the first since 1968, means that the WHO believes a global outbreak of H1N1 has begun. As a result of the declaration, all countries, including those with no reported [...]
