By participating in the exchange offers, HOLDRS investors will authorize the sale of certain securities underlying the tendered HOLDRS and the purchase of certain other securities to conform to a diversified basket of stocks that align with the indices underlying the new Market Vectors ETFs. Each tendered HOLDRS will be exchanged for one share of the new ETF. The transaction is structured to be an equal value exchange, i.e., the value of the shares of the new ETF received by investors participating in the exchange will be expected to have the equivalent value to the tendered HOLDRS (based on the value of the underlying securities as of the close of trading on the date the exchange offers expire). The risks of the transaction to rebalance the portfolio are described in detail in the exchange offer documents.
|Ticker||HOLDRS Trust||Market Vectors ETF See links for prospectus filings.||Market Vectors IndexSee links for index information.|
|HOLDRS/ETFs INCLUDED IN EXCHANGE OFFERS:|
|OIH||Oil Service||Oil Services ETF||US Listed Oil Services 25 Index(MVOIHTR)|
|SMH||Semiconductor||Semiconductor ETF||US Listed Semiconductor 25 Index (MVSMHTR)|
|PPH||Pharmaceutical||Pharmaceutical ETF||US Listed Pharmaceutical 25 Index (MVPPHTR)|
|BBH||Biotech||Biotech ETF||US Listed Biotech 25 Index(MVBBHTR)|
|RTH||Retail||Retail ETF||US Listed Retail 25 Index(MVRTHTR)|
|RKH||Regional Bank||Bank and Brokerage ETF||US Listed Bank and Brokerage 25 Index (MVRKHTR)|
Information relating to the Indicative Rebalanced HOLDRS Securities Value will be available on Van Eck’s website, vaneck.com/holdrs, or by calling, toll free, 800.290.6424 (Banks and Brokers: 212.269.5550).
U.S. Federal Income TaxesGenerally speaking, Van Eck is structuring the exchange offers so that a portion of the exchange of HOLDRS for shares of the ETF is expected to benefit from tax-free exchange treatment for U.S. federal income tax purposes. However, because certain securities underlying the HOLDRS will be sold (and securities will be purchased) in order to conduct portfolio rebalancing and to conform each new Market Vectors ETF as closely as possible to the securities in the underlying index, investors that participate in the exchange offers generally will recognize taxable gains or losses in respect of the securities that are sold. The amount of securities underlying the HOLDRS that will be sold will vary by HOLDRS Trust.
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