Holding Company Depository Receipt - HOLDR
Categories: Board of Directors, Incorporation
See: Holding Company.
A holding company depository receipt (conveniently, “HOLDR”) is a fixed basket of publicly traded stocks that sell as a single stock, typically designed as a basket of a certain industry.
How are HOLDRs different from ETFs (exchange-traded funds)? ETFs have many more moving parts, since they track an index, while HOLDRs hold the same stocks, regardless of any index. Investors who hold HOLDRs also are owners of the underlying stock, giving them voting and dividend rights, unlike ETFs.
ETFs and HOLDRs are similar though, in that they’re both low-fee and great in the tax department. Yet you can enter the ETF market with little money, while HOLDRs are typically bought in 100-set lots, making it expensive to get started with them.