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UTH

The competitive landscape of the ETF industry has evolved rapidly over the last several years, with several new players–both big and small–making a push into the space. From financial giants such as RBS and Citi to relative unknowns such as Javelin and Precidian, the roster of active ETF issuers has grown to nearly four dozen. Now, mirroring a trend playing out in the lineup of exchange-traded products, it appears that some contraction is in order. Coming months could see a few ETP issuers wiped off the map, as a series of fund closures and mergers should reduce the number of companies that market exchange-traded products [see also ETF Update: Pipeline Continues To Fill]. [click to continue…]

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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…]

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