BNY Mellon has been selected to provide exchange-traded fund (ETF) services, custody, fund accounting and securities lending for the six new Market Vector Industry ETFs, which launched on December 20.
The ETFs were previously Merrill Lynch-sponsored HOLDRS, which were terminated following exchange offers. The ETFs target specific industries such as: oil services (OIH), semiconductors (SMH), pharmaceuticals (PPH), biotech (BBH), retail (RTH) and regional banks (RKH). The new ETFs are distributed by Van Eck Global.
“The ETF structure provides a more dynamic, diversified investment vehicle as it better reflects changes in the composition of industry sectors that inevitably occur over time,” says John Crimmins, vice president of portfolio administration, at Van Eck. “This was a unique transaction, and we are pleased that BNY Mellon had the expertise and depth of service required to assist investors who transitioned from the HOLDRS to the ETFs.”
BNY Mellon’s Depositary Receipts group has acted as the trustee for the HOLDRS baskets since the inception of the product in the late 1990s. BNY Mellon Shareowner Services was the exchange agent for the six exchange offers.
“We remain committed to developing the technology and client services that have enabled BNY Mellon to deliver the type of innovation demanded by the constantly evolving ETF industry,” says Joseph Keenan, managing director and global head of ETF services at BNY Mellon Asset Servicing. “This exchange offer, another first for the ETF industry, illustrates the continuing changes in this investment segment.”
(CG)