RT Journal Article
SR Electronic
T1 Are HOLDRs a Piece of the Closed-End Fund Puzzle?
JF The Journal of Investing
FD Institutional Investor Journals
SP 65
OP 71
DO 10.3905/joi.2001.319463
VO 10
IS 2
A1 Oleg Solodar
A1 Michael J. Seiler
YR 2001
UL https://pm-research.com/content/10/2/65.abstract
AB The purpose of this study is to determine whether holding company depository receipts, or HOLDRs, a recently introduced financial product, carry a premium or discount to their net asset value. An examination of daily price time series reveals that like closed-end mutual funds, the HOLDR trades at an 8% discount to its NAV, and the discount is persistent over time. The discount is explained by market friction, inherent time risk, investor sentiment risk, and high volatility of the portfolio.