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Merrill Lynch adds 2 New HOLDRS to the Family

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Merrill Lynch recently launched a new Market 2000 HOLDRS (MKH), and has announced that it plans to launch a Software HOLDRS (SWH).

On August 30, Merrill Lynch announced trading of the Market 2000 HOLDRS, the first cross sector, equal-weighted offering of HOLDRS, with an aggregate initial market capitalization over $500 million. The holdings in the fund represent the stock of a group of 50 international companies that are the largest from around the globe that trade in the U.S., as measured in terms of worldwide market capitalization on July 7, 2000.

Merrill Lynch claims it had index fund investors in mind when it launched Market 2000 HOLDRS as a cost-effective and tax-efficient way to invest in a diversified basket of global stocks. Like all HOLDRS, the annual expense is $0.08 per share.

Stock Holdings in the Market 2000 HOLDRS

Name of Company
Ticker
Shares Amounts
Initial Weightings
Trading Market
America Online, Inc.
AOL
3
1.85%
NYSE
American International Group, Inc.
AIG
2
1.81%
NYSE
Astrazeneca p.l.c.
AZN
4
1.93%
NYSE
AT&T Corp.
T
6
1.94%
NYSE
BellSouth Corporation
BLS
5
1.91%
NYSE
BP Amoco p.l.c.
BP
3
1.77%
NYSE
Bristol-Myers Squibb Company
BMY
3
1.74%
NYSE
British Telecommunications p.l.c.
BTY
2
2.56%
NYSE
Cisco Systems, Inc.
CSCO
3
2.08%
Nasdaq NMS
Citigroup Inc.
C
3
1.82%
NYSE
The Coca-Cola Company
KO
3
1.79%
NYSE
Dell Computer Corporation
DELL
5
2.07%
Nasdaq NMS
Deutsche Telekom AG
DT
5
2.10%
NYSE
Eli Lilly and Company
LLY
2
1.56%
NYSE
EMC Corporation
EMC
2
1.99%
NYSE
Exxon Mobil Corporation
XOM
2
1.73%
NYSE
France Telecom
FTE
2
2.52%
NYSE
General Electric Company
GE
3
1.89%
NYSE
Glaxo Wellcome p.l.c.
GLX
3
1.85%
NYSE
Hewlett-Packard Company
HWP
2
2.53%
NYSE
Home Depot, Inc.
HD
4
2.10%
NYSE
Intel Corporation
INTC
2
1.55%
Nasdaq NMS
International Business Machines Corporation
IBM
2
2.73%
NYSE
JDS Uniphase Corporation
JDSU
2
2.59%
Nasdaq NMS
Johnson & Johnson
JNJ
2
1.98%
NYSE
LM Ericsson Telephone Company
ERICY
9
1.86%
Nasdaq NMS
Lucent Technologies Inc.
LU
4
1.78%
NYSE
Merck & Co., Inc.
MRK
3
2.28%
NYSE
Microsoft Corporation
MSFT
3
2.24%
Nasdaq NMS
Morgan Stanley Dean Witter & Co.
MWD
2
2.15%
NYSE
Nippon Telegraph and Telephone Corporation
NTT
3
1.85%
NYSE
Nokia Corp.
NOK
4
1.73%
NYSE
Nortel Networks Corporation
NT
2
1.70%
NYSE
Novartis AG
NVS
5
2.06%
NYSE
Oracle Corporation
ORCL
2
1.82%
Nasdaq NMS
Pfizer Inc.
PFE
4
1.80%
NYSE
Qwest Communications International Inc.
Q
4
2.13%
NYSE
Royal Dutch Petroleum Company
RD
3
1.95%
NYSE
SBC Communications Inc.
SBC
4
1.75%
NYSE
Sony Corporation
SNE
2
2.36%
NYSE
Sun Microsystems, Inc.
SUNW
2
2.68%
Nasdaq NMS
Texas Instruments Incorporated
TXN
3
2.15%
NYSE
Time Warner Inc.
TWX
2
1.81%
NYSE
Total Fina Elf S.A.
TOT
2
1.63%
NYSE
Toyota Motor Corporation
TM
2
1.84%
NYSE
Verizon Communications
VZ
4
1.84%
NYSE
Viacom Inc.
VIA.B
3
2.11%
NYSE
Vodafone Airtouch p.l.c.
VOD
5
2.09%
NYSE
Wal-Mart Stores Inc.
WMT
4
2.07%
NYSE
WorldCom, Inc.
WCOM
5
1.95%
Nasdaq NMS

 

Source: Merrill Lynch & Co, Inc.

"Shares Amounts" refers to the amount of shares for each stock in each round lot of 100 Market 2000 HOLDRS.
[/:Author:] [:Date:]
"Initial Weightings" refers to the % of capitalization held in each stock.

Merrill Lynch also plans to launch a Software HOLDRS (SWH), and filed the announcement on September 7. The Software HOLDRS will contain 20 of the largest stocks from the technology sector, and will be the twelfth HOLDRS offering.

It should be noted that if you purchase Software HOLDRS during the initial public offering, you will pay an underwriting fee of 2%.

Stock Holdings in the Software HOLDRS

Name of Company
Ticker
Shares Amounts
InitialWeightings
Trading Market

Oracle Corporation

ORCL
11
9.41%
Nasdaq NMS
Veritas Software Corporation
VRTS
9
9.32%
Nasdaq NMS
Microsoft Corporation
MSFT
12
9.31%
Nasdaq NMS
SAP AG
SAP
15
9.30%
NYSE
i2 Technologies
ITWO
6
9.24%
Nasdaq NMS
Siebel Systems
SEBL
5
8.49%
Nasdaq NMS
TIBCO Softwre
TIBX
6
6.92%
Nasdaq NMS
Check Point Software Technologies
CHKP
5
6.67%
Nasdaq NMS
Adobe Systems
ADBE
4
4.82%
Nasdaq NMS
Computer Associates International
CA
18
4.81%
NYSE
Rational Software Corporation
RATL
3
3.14%
Nasdaq NMS
Sapient Corporation
SAPE
2
2.65%
Nasdaq NMS
Intuit Inc.
INTU
6
2.55%
Nasdaq NMS
PeopleSoft
PSFT
9
2.31%
Nasdaq NMS
Phone.Com
PHCM
2
2.17%
Nasdaq NMS
Mercury Interactive Corporation
MERQ
2
2.14%
Nasdaq NMS
Nuance Communications
NUAN
1
1.83%
Nasdaq NMS
Macromedia, Inc.
MACR
2
1.78%
Nasdaq NMS
BMC Software
BMCS
8
1.67%
Nasdaq NMS
Micromuse Inc.
MUSE
1
1.47%
Nasdaq NMS

 

Source: www.freeedgar.com

"Shares Amounts" refers to the amount of shares for each stock in each round lot of 100 Market 2000 HOLDRS.[/:Author:] [:Date:]
"Initial Weightings" refers to the % of capitalization held in each stock.

A few facts about Merrill Lynch HOLDRS:

  • HOLDRS stands for "Holding Company Depository Receipts."
  • HOLDRS shares can be bought and sold throughout the day like stocks.
  • HOLDRS can only be bought in 100-share pieces, or round lots, which can exclude some investors without a lot of capital to invest.
  • To find out more about HOLDRS, go to www.holdrs.com, which features research tools to find out more about these Merrill Lynch products.

For a complete exchange-traded fund (ETF) listing, click here.