plans to launch a new version of its exchange-traded
HOLDRs, this one focusing on broadband stocks.
HOLDRs are baskets of 20 stocks that are bought and sold as a single security and are traded on the
American Stock Exchange
. The broadband HOLDRs, which will trade under the symbol BDH, will be the eighth in Merrill's HOLDRs lineup. (For other HOLDRs and the stocks they hold, see a recent
Dear Dagen column.)
Broadband is one of those new-school buzzwords that can carry multiple definitions. Merrill is defining broadband as companies that "develop, manufacture and market products and services which, among other things, facilitate the transmission of data, video and voice more quickly and more efficiently than traditional telephone line communications," according to the prospectus.
Merrill has filed the required paperwork with the
Securities and Exchange Commission
, but it's unclear when the HOLDRs will launch. A Merrill official wouldn't comment on the launch date.
Still, investors will probably be interested to find out the stocks that will eventually go into the basket. Before the
HOLDRs launched on Feb. 1, they attracted a combined $1.5 billion in assets upon their initial offering. There is evidence that when a new HOLDRs basket is filed with the SEC, some investors will load up on the 20 stocks in advance, knowing that Merrill will eventually have to buy them in large quantities for the HOLDRs portfolio.
Those 20 stocks are no secret. They're right there in the filing. They're listed below.
Dear Dagen aims to provide general fund information. Under no circumstances does the information in this column represent a recommendation to buy or sell funds or other securities.