ProShares Announces Several ETF Share Splits
Benzinga 9 years ago
NewsStock SplitETFs
BETHESDA, Md.--(BUSINESS WIRE)-- ProShares, a premier provider of ETFs, announced today forward and reverse share splits on 10 of its ETFs. The splits will not change the total value of a shareholder's investment.
Forward Splits
Seven ETFs will forward split shares 2-for-1:
Ticker ProShares ETF Split Ratio
QLD Ultra QQQ 2:1
UDOW UltraPro Dow30 2:1
UWM Ultra Russell2000 2:1
URE Ultra Real Estate 2:1
URTY UltraPro Russell2000 2:1
ROM Ultra Technology 2:1
SVXY Short VIX Short-Term Futures ETF 2:1
All forward splits will apply to shareholders of record as of the close of the markets on July 12, 2017, payable after the close of the markets on July 14, 2017. The funds will trade at their post-split prices on July 17, 2017. The ticker symbols and CUSIP numbers for the funds will not change.
The forward splits will decrease the price per share of each fund with a proportionate increase in the number of shares outstanding. For example, for the 2-for-1 splits, every pre-split share will result in the receipt of two post-split shares, which will be priced at one-half the net asset value (“NAV”) of a pre-split share.
Illustration of a Forward Split
The following table shows the effect of a hypothetical 2-for-1 split:
Period # of Shares Owned Hypothetical NAV Value of Shares
Pre-Split 100 $100.00 $10,000.00
Post-Split 200 $50.00 $10,000.00
Reverse Splits
Three ETFs will reverse split shares at the following split ratios:
Ticker ProShares ETF Split Ratio Old CUSIP New CUSIP
SDS UltraShort S&P500 1:4 74347B300 74347B383
VIXY VIX Short-Term Futures ETF 1:4 74347W262 74347W171
UVXY Ultra VIX Short-Term Futures ETF 1:4 74347W239 74347W163
All reverse splits will be effective at the market open on July 17, 2017, when the funds will begin trading at their post-split price. The ticker symbol for the funds will not change. All funds undergoing a reverse split will be issued a new CUSIP number, listed above.
The reverse splits will increase the price per share of each fund with a proportionate decrease in the number of shares outstanding. For example, for a 1-for-4 reverse split, every four pre-split shares will result in the receipt of one post-split share, which will be priced four times higher than the NAV of a pre-split share.
Illustration of a Reverse Split
The following table shows the effect of a hypothetical 1-for-4 reverse split:
Period # of Shares Owned Hypothetical NAV Value of Shares
Pre-Split 1,000 $10.00 $10,000.00
Post-Split 250 $40.00 $10,000.00
Fractional Shares from Reverse Splits
For shareholders who hold quantities of shares that are not an exact multiple of the reverse split ratio (for example, not a multiple of 4 for a 1-to-4 reverse split), the reverse split will result in the creation of a fractional share. Post-reverse split fractional shares will be redeemed for cash and sent to your broker of record. This redemption may cause some shareholders to realize gains or losses, which could be a taxable event for those shareholders.
Forward Splits
Seven ETFs will forward split shares 2-for-1:
Ticker ProShares ETF Split Ratio
QLD Ultra QQQ 2:1
UDOW UltraPro Dow30 2:1
UWM Ultra Russell2000 2:1
URE Ultra Real Estate 2:1
URTY UltraPro Russell2000 2:1
ROM Ultra Technology 2:1
SVXY Short VIX Short-Term Futures ETF 2:1
All forward splits will apply to shareholders of record as of the close of the markets on July 12, 2017, payable after the close of the markets on July 14, 2017. The funds will trade at their post-split prices on July 17, 2017. The ticker symbols and CUSIP numbers for the funds will not change.
The forward splits will decrease the price per share of each fund with a proportionate increase in the number of shares outstanding. For example, for the 2-for-1 splits, every pre-split share will result in the receipt of two post-split shares, which will be priced at one-half the net asset value (“NAV”) of a pre-split share.
Illustration of a Forward Split
The following table shows the effect of a hypothetical 2-for-1 split:
Period # of Shares Owned Hypothetical NAV Value of Shares
Pre-Split 100 $100.00 $10,000.00
Post-Split 200 $50.00 $10,000.00
Reverse Splits
Three ETFs will reverse split shares at the following split ratios:
Ticker ProShares ETF Split Ratio Old CUSIP New CUSIP
SDS UltraShort S&P500 1:4 74347B300 74347B383
VIXY VIX Short-Term Futures ETF 1:4 74347W262 74347W171
UVXY Ultra VIX Short-Term Futures ETF 1:4 74347W239 74347W163
All reverse splits will be effective at the market open on July 17, 2017, when the funds will begin trading at their post-split price. The ticker symbol for the funds will not change. All funds undergoing a reverse split will be issued a new CUSIP number, listed above.
The reverse splits will increase the price per share of each fund with a proportionate decrease in the number of shares outstanding. For example, for a 1-for-4 reverse split, every four pre-split shares will result in the receipt of one post-split share, which will be priced four times higher than the NAV of a pre-split share.
Illustration of a Reverse Split
The following table shows the effect of a hypothetical 1-for-4 reverse split:
Period # of Shares Owned Hypothetical NAV Value of Shares
Pre-Split 1,000 $10.00 $10,000.00
Post-Split 250 $40.00 $10,000.00
Fractional Shares from Reverse Splits
For shareholders who hold quantities of shares that are not an exact multiple of the reverse split ratio (for example, not a multiple of 4 for a 1-to-4 reverse split), the reverse split will result in the creation of a fractional share. Post-reverse split fractional shares will be redeemed for cash and sent to your broker of record. This redemption may cause some shareholders to realize gains or losses, which could be a taxable event for those shareholders.