RT Journal Article
SR Electronic
T1 What Are BLDRS?
JF The Journal of Alternative Investments
FD Institutional Investor Journals
SP 66
OP 78
DO 10.3905/jai.2007.682737
VO 9
IS 4
A1 Jay Dahya
A1 Jack Clark Francis
A1 Charlotte Hansen
YR 2007
UL https://pm-research.com/content/9/4/66.abstract
AB The first exchange traded fund (ETF) in the U.S. was the Standard & Poor's depositary receipt (SPDR) which began trading in 1993. SPDRs were followed by eighteen new ETFs named World Equity Benchmark Series (WEBS) that initiated trading of international mutual funds on U.S. stock exchanges in 1996. WEBS were renamed iShares in 2000. In 2002 four new exchange traded funds were listed and have since been trading on NASDAQ that as a group, are called BLDRS. BLDRS, an acronym for “basket of listed depositary receipts” are portfolios that invest in three types of depository receipts: American Depositary Receipt, Global Depository Receipts, and New York Shares. Like SPDRS, BLDRS were established under the legal guidelines of the Investment Company Act of 1940 as unit investment trusts. They are a type of index fund that holds a diversified portfolio of international equity securities. This article discusses the features of BLDRS and compares and contrasts BLDRS with iShares and other international investment funds.TOPICS: Exchange-traded funds and applications, global portfolio construction, security analysis and valuation