ProShares, has announced forward and reverse share splits on 21 of its ETFs. The splits will not change the value of a shareholder’s investment..…
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Forward Splits
Twelve ETFs will forward split shares 2-for-1:
| Ticker | ProShares ETF | Split Ratio |
|---|---|---|
| CSM | Large Cap Core Plus | 2:1 |
| SAA | Ultra SmallCap600 | 2:1 |
| UMDD | UltraPro MidCap400 | 2:1 |
| SSO | Ultra S&P500 | 2:1 |
| UPRO | UltraPro S&P500 | 2:1 |
| DDM | Ultra Dow30 | 2:1 |
| UDOW | UltraPro Dow30 | 2:1 |
| RXL | Ultra Health Care | 2:1 |
| QLD | Ultra QQQ | 2:1 |
| UYG | Ultra Financials | 2:1 |
| ROM | Ultra Technology | 2:1 |
| BIB | Ultra Nasdaq Biotechnology | 2:1 |
All splits will apply to shareholders of record as of the close of the markets on May 18, 2015, payable after the close of the markets on May 19, 2015. The funds will trade at their post-split price on May 20, 2015. The ticker symbol and CUSIP numbers for the funds will not change.
The 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 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
Nine ETFs will reverse split shares at the following split ratios:
| Ticker |
ProShares ETF |
Split Ratio | Old CUSIP | New CUSIP |
|---|---|---|---|---|
| SRS | UltraShort Real Estate | 1:4 | 74348A871 | 74348A244 |
| SCC | UltraShort Consumer Services | 1:4 | 74348A616 | 74348A236 |
| RXD | UltraShort Health Care | 1:4 | 74347B102 | 74348A228 |
| RWM | Short Russell2000 | 1:4 | 74347R826 | 74348A210 |
| BOIL | Ultra Bloomberg Natural Gas | 1:4 | 74347W122 | 74347W296 |
| UCD | Ultra Bloomberg Commodity | 1:4 | 74347W106 | 74347W288 |
| YCL | Ultra Yen | 1:4 | 74347W866 | 74347W270 |
| UVXY | Ultra VIX Short-Term Futures | 1:5 | 74347W346 | 74347W312 |
| UCO | Ultra Bloomberg Crude Oil | 1:5 | 74347W650 | 74347W320 |
All reverse splits will be effective at the market open on May 20, 2015, 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.
Source: ETFWorld.com
WMCR
Wilshire Micro-Cap ETF (based on the Wilshire US Micro-Cap Index)
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