ProShares, a premier provider of alternative ETFs, announced today share splits and reverse share splits on the ETFs listed below. The splits and reverse splits will not change the value of a shareholder’s investment….
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Splits
The following ETFs will split shares:
| Ticker | ETF | Split Ratio |
|---|---|---|
| BIB | ProShares Ultra Nasdaq Biotechnology | 2:1 |
| MVV | ProShares Ultra MidCap400 | 2:1 |
| FINU | ProShares UltraPro Financials | 2:1 |
| TQQQ | ProShares UltraPro QQQ | 2:1 |
| SVXY | ProShares Short VIX Short-Term Futures ETF | 2:1 |
All splits will apply to shareholders of record as of the close of the markets on January 21, 2014, payable after the close of the markets on January 23, 2014. The ETFs will trade at their post-split price on January 24, 2014. The ticker symbols and CUSIP numbers for the ETFs will not change.
The splits will decrease the price per share of each ETF 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 half the net asset value (“NAV”) of a pre-split share.
Illustration of a 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
The following ETFs will reverse split shares at the following split ratios:
| Ticker | ETF | Split Ratio | Old CUSIP | New CUSIP |
|---|---|---|---|---|
| EWV | ProShares UltraShort MSCI Japan | 1:4 | 74347R347 | 74348A459 |
| SPXU | ProShares UltraPro Short S&P500 | 1:4 | 74348A632 | 74348A442 |
| EPV | ProShares UltraShort FTSE Europe | 1:4 | 74348A301 | 74348A434 |
| QID | ProShares UltraShort QQQ | 1:4 | 74347X237 | 74348A426 |
| SQQQ | ProShares UltraPro Short QQQ | 1:4 | 74348A665 | 74348A418 |
| SMDD | ProShares UltraPro Short MidCap400 | 1:4 | 74348A657 | 74348A392 |
| SJH | ProShares UltraShort Russell2000 Value | 1:4 | 74348A509 | 74348A384 |
| SBB | ProShares Short SmallCap600 | 1:4 | 74347R784 | 74348A376 |
| SIJ | ProShares UltraShort Industrials | 1:4 | 74348A103 | 74348A368 |
| FXP | ProShares UltraShort FTSE China 25 | 1:4 | 74347X567 | 74348A350 |
| MZZ | ProShares UltraShort MidCap400 | 1:4 | 74347X211 | 74348A343 |
| TWM | ProShares UltraShort Russell2000 | 1:4 | 74348A202 | 74348A319 |
| SDD | ProShares UltraShort SmallCap600 | 1:4 | 74348A400 | 74348A327 |
| SRTY | ProShares UltraPro Short Russell2000 | 1:4 | 74348A640 | 74348A335 |
| SKK | ProShares UltraShort Russell2000 Growth | 1:4 | 74347X195 | 74348A293 |
| AGQ | ProShares Ultra Silver | 1:4 | 74347W841 | 74347W353 |
| UVXY | ProShares Ultra VIX Short-Term Futures ETF | 1:4 | 74347W379 | 74347W346 |
All reverse splits will be effective at the market open on January 24, 2014, when the ETFs will begin trading at their post-split price. The ticker symbol for the ETFs will not change. All ETFs undergoing a reverse split will be issued a new CUSIP number.
The reverse splits will increase the price per share of each ETF 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.
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.
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 |
Source: ETFWorld – ProShares
WMCR
Wilshire Micro-Cap ETF (based on the Wilshire US Micro-Cap Index)
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