As of November 4, 2011, it is expected that approximately 28% of the securities underlying the Oil Service HOLDRS Trust (OIH) will be sold in the rebalancing transaction and that approximately 72% of the underlying stocks are expected to be transferred to the ETF (and would therefore generally not be currently taxable) to conform as closely as possible to the Market Vectors US Listed Oil Services 25 Index (MVOIHTR). OIH is highlighted here as it is the largest of the HOLDRS Trusts included in the exchange offers; it should be noted that these breakdowns vary greatly by HOLDRS Trust. As of November 4, 2011, it is expected that the following percentages of securities underlying the other five HOLDRS will be sold in the rebalancing transaction: SMH: 42%; PPH: 53%; BBH: 62%; RTH: 26%; RKH: 77%. These percentages may change between now and expiration of the exchange offers.Van Eck notes that while not entirely tax-free, participation in the exchange offers may have certain tax advantages when compared to other alternatives such as a sale of HOLDRS in the open market. Investors are encouraged to consult with their own tax advisors regarding the tax consequences under all applicable tax laws of participating in an exchange offer, including any particular tax consequences pertaining to their situation.
Van Eck Global Commences Exchange Offers For Oil Service HOLDRS Trust (OIH) And Five Other Merrill Lynch HOLDRS®
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