A security developed by Merrill Lynch that represents an exchanged-traded fund (ETF). By purchasing HOLDRs, investors become owners in the common stock or American Depositary Receipts of companies in a particular industry or sector. For instance, inves- tors can purchase Telecom HOLDRs, Semiconductor HOLDRs, or Oil Services HOLDRs. These trade on the New York Stock Exchange and the American Stock Exchange. HOLDRs were developed to let an investor own a moderately diversified group of stocks by purchasing a single investment that is transparent and liquid. The purchase is economical because one sales commission is paid, in contrast with multiple commissions that would be owed on the purchase of individual shares.