Products January 11, 2003

Nasdaq Unveils BLDRS ETFs

November 13, 2002 (PLANSPONSOR.com) - Nasdaq Financial Products Services, Inc., a subsidiary of The Nasdaq Stock Market, Inc, has unveiled BLDRS, a new family of exchange-traded funds (ETFs) based on The Bank of New York (BONY) ADR Indexes.
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The BLDRS Funds are the first ETFs listed on Nasdaq and the first ETFs based on depositary receipts (DRs), according to a media announcement. BONY will serve as Trustee and Index Provider.

BLDRS Funds hold a portfolio of depositary receipts that can be bought and sold throughout the trading day similar to shares of stock, the announcement said. Each BLDRS Fund has its ordinary expenses capped at 0.30%.

Investors will be able to purchase shares on margin, short sell shares, or hold for the long term, the announcement said. In addition, shares can be purchased at intra-day prices.

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According to the announcement, the BLDRS Fund family is currently made up of four ETFs, including two market index funds and two regional index funds:

  • BLDRS Emerging Markets 50 ADR Index Fund, (ADRE)
  • BLDRS Developed Markets 100 ADR Index Fund, (ADRD)
  • BLDRS Europe 100 ADR Index Fund (ADRU)
  • BLDRS Asia 50 ADR Index Fund, (ADRA).

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