DIAMONDS®
Trust Series 1
Supplement
Dated October 30, 2009
to the
Prospectus Dated February 27, 2009
The footnote to the text on page 4 of the prospectus is
hereby deleted and replaced with the following:
See, however, the discussion of termination of the Trust in this
Prospectus for a description of the circumstances in which
DIAMONDS may be redeemed in less than a Creation Unit size
aggregation of 50,000 DIAMONDS.
The second paragraph after the title DIAMONDS Make
Periodic Dividend Payments on pages 9-10 of the
prospectus is hereby deleted and replaced with the following:
Monthly distributions based on the amount of dividends payable
with respect to Portfolio Securities and other income received
by the Trust, net of fees and expenses, and taxes, if
applicable, are made via DTC and its participants to Beneficial
Owners on each Dividend Payment Date. Any capital gain income
recognized by the Trust in any taxable year that is not
previously treated as distributed during the year ordinarily is
to be distributed at least annually in January of the following
taxable year. The Trust may make additional distributions
shortly after the end of the year in order to satisfy certain
distribution requirements imposed by the Internal Revenue Code
of 1986, as amended (Code). Although all
distributions are currently made monthly, under certain limited
circumstances the Trustee may vary the periodicity with which
distributions are made. Those Beneficial Owners interested in
reinvesting their monthly distributions may do so through a
dividend reinvestment service, if one is offered by their
broker-dealer. Under limited certain circumstances, special
dividend payments also may be made to the Beneficial Owners. See
Administration of the Trust Distributions to
Beneficial Owners.
The entire section under the title DIVIDEND REINVESTMENT
SERVICE on pages 56-57 of the prospectus is hereby
deleted and replaced with the following:
Broker-dealers, at their own discretion, may offer a dividend
reinvestment program under which additional DIAMONDS are
purchased in the secondary market at current market prices.
Investors should consult their broker dealer for further
information regarding any dividend reinvestment program offered
by such broker dealer.
Distributions in cash that are reinvested in additional DIAMONDS
through of a dividend reinvestment service, if offered by an
investors broker-dealer, will nevertheless be taxable
dividends to the same extent as if such dividends had been
received in cash.
The footnote appearing on page 57 of the prospectus is
hereby deleted in its entirety.
The last paragraph after the title Distributions to
Beneficial Owners on page 62 of the prospectus is
hereby deleted in its entirety.
PLEASE
RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE.