Europe

New HOLDRS Allow Investment in Europe's Largest Companies

Europe

Europe 2001 HOLDRS began trading on the American Stock Exchange (AMEX) on January 18 under the symbol EKH. With the new HOLDRS, which stands for Holding Company Depository Receipts, investors can own interest in 50 of the largest companies in Europe in terms of total market capitalization. The Bank of New York is the trustee for the new financial product, and the issuer for EKH is Merrill Lynch. Europe 2001 HOLDRS can be bought in a round-lot amount of 100 or round-lot multiples.

Expense ratio comes in the form a quarterly custody fee of $2.00 for each round-lot of 100 Europe 2001 HOLDRS.

HOLDRS are different from other exchange-traded funds (ETFs), such as Barclays' iShares and State Street's streetTRACKS, in that they do not seek to track an index. For example, the iShares S&P Europe 350 seeks to mirror the performance of stocks across a broad range of industries in Europe, as represented by the S&P Europe 350 Index. Europe 2001 HOLDRS give investors ownership interest in the stocks of 50 of the largest European companies listed on AMEX, the New York Stock Exchange, or quoted on Nasdaq - measured in terms of market capitalization on November 14, 2000.

In the event of the distribution of odd and partial shares, these shares can now be held and liquidated as part of the trust's round lots. The table below lists the securities underlying Europe 2001 HOLDRS with specific share amounts for each round lot of 100 Europe 2001 HOLDRS. The holdings will not change except to reflect corporate actions or reconstitution events.

Name & Symbol
# Of Shares
Name & Symbol
# Of Shares
AEGON N.V. (AEG)
5
KPNQuest N.V. ADR (KQIP)
8
Alcatel - ADS (ALA)
3
Millicom International Celluar S.A. (MICC)
6
Amdocs Limited (DOX)
3
Nokia Corp. ADR (NOK)
5
ARM Holdings Ltd. PLC ADR (ARMHY)
8
Novartis AG ADR (NVS)
5
ASM International NV (ASMI)
13
QIAGEN N.V. (QGENF)
6
ASM Lithography Holding NV (ASML)
7
Repsol YPF, S.A.ADR (REP)
11
AstraZeneca P.L.C. ADR (AZN)
4
Royal Dutch Petroleum Co. (RD)
3
Autonomy Corporaption PLC ADR (AUTN)
6
Ryanair Holdings p.l.c. ADR (RYAAY)
4
Aventis S.A. ADR (AVE)
2
SAP AG ADR (SAP)
4
AXA Financial, Inc. ADR (AXA)
3
Scotish Power Group p.l.c. ADR (SPI)
7
Bookham Technology PLC ADR (BKHM)
12
Serono S.A. ADR (SRA)
9
BP Amoco P.L.C. ADR (BP)
4
Shire Pharmaceuticals Grp ADR (SHPGY)
4
Business Objects SA ADS (BOBJ)
3
Smartforce Public Ltd. Co. ADR (SMTF)
6
Cable & Wireless P.L.C. ADR (CWP)
4
Sonera Group p.l.c. ADR (SNRA)
9
DaimlerChrysler AG (DCX)
4
STMicroelectronics NV (STM)
4
Deutsche Telekom AG ADR (DT)
5
Telefronica S.A. ADR (TEF)
3
Diageo P.L.C. ADR (DEO)
5
Terra Networks S.A . ADR (TRLY)
15
Elan Corporation p.l.c. ADR (ELN)
4
Total Fina Elf S.A. ADR (TOT)
3
Ericsson, L.M. Telephone Co. ADR (ERICY)
16
UBS AG (UBS)
1
GlaxoSmithKline p.l.c.. ADR (GSK)
6
Unilever N.V. NY Shares (UN)
3
Infineon Technologies AG ADR (IFX)
5
United Pan-Europe Comm ADR (UPCOY)
13
ING Group NV ADR (ING)
2
Vivendi Univl S.A. ADR (V)
3
IONA Technologies p.l.c. ADR (IONA)
3
Vodafone Airtouch PLC ADR (VOD)
6
Jazztel p.l.c. ADR (JAZZ)
11
WPP Group plc ADR (WPPGY)
3
Koninklijke Phlps Elc ADR (KQIP)
5
 
 

Source: AMEX

According to AMEX, approximately $6 billion in assets are presently invested in HOLDRS worldwide.