ProShares announced share splits on seven of its ETFs. The splits will not change the value of a shareholder’s investment...
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Forward Splits
Two ETFs will forward split shares 2-for-1:
Ticker | ProShares ETF | Split Ratio |
---|---|---|
BZQ | UltraShort MSCI Brazil Capped | 2:1 |
ZSL | UltraShort Silver | 2:1 |
All splits will apply to shareholders of record as of the close of the markets on November 10, 2015, payable after the close of the markets on November 12, 2015. The funds will trade at their post-split price on November 13, 2015. The ticker symbol 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. 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
Four ETFs will reverse split shares 1-to-3, and one will reverse split 1-to-5:
Ticker | ProShares ETF | Split Ratio | Old CUSIP | New CUSIP |
---|---|---|---|---|
GDXX | Ultra Gold Miners | 1:3 | 74348A251 | 74347B482 |
GDJJ | Ultra Junior Miners | 1:3 | 74348A277 | 74347B466 |
UOP | Ultra Oil & Gas Exploration & Production | 1:3 | 74347B672 | 74347B458 |
UBR | Ultra MSCI Brazil Capped | 1:3 | 74347X120 | 74347B490 |
UBIO | UltraPro Nasdaq Biotechnology | 1:5 | 74347B631 | 74347B474 |
All reverse splits will be effective at the market open on November 13, 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-3 reverse split, every three pre-split shares will result in the receipt of one post-split share, which will be priced three 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-3 reverse split:
Period | # of Shares Owned | Hypothetical NAV | Value of Shares |
---|---|---|---|
Pre-Split | 300 | $10.00 | $3,000.00 |
Post-Split | 100 | $30.00 | $3,000.00 |
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 3 for a 1-to-3 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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