ProShares, the world’s biggest purveyor of inverse and leveraged ETFs, is planning regular share splits on six of its ETFs as well as reverse splits on 11 other of its exchange-traded funds, the company said this week in a press release.
The regular splits will decrease share prices by increasing the number of outstanding shares. The reverse splits achieve the opposite effect—namely increase the share price by decreasing the number of outstanding shares.
With the exception of fractional shares, share splits and reverse splits don’t alter the total value of the shares outstanding. Any fractional shares will be redeemed for cash and sent to brokers of record, ProShares said.
Bethesda, Md.-based ProShares said it will conduct four 2-for-1 share splits; two 3-for-1 splits; six 1-for-4 reverse splits; and five 1-for-5 reverse splits.
All the splits and reverse splits will be effective on May 11, with the regular splits applying to shareholders of record as of May 8 and the reverse splits going to shareholders of record as of May 10.
- ProShares Ultra QQQ ETF (NYSEArca: QLD)
- ProShares UltraPro QQQ ETF (NYSEArca: TQQQ)
- ProShares Ultra 20+ Year Treasury ETF (NYSEArca: UBT)
- ProShares Ultra 7-10 Year Treasury ETF (NYSEArca: UST)
- ProShares UltraPro Dow 30 ETF (NYSEArca: UDOW)
- ProShares UltraShort DJ-UBS Natural Gas ETF (NYSEArca: KOLD)
1-For-4 Reverse Splits
- ProShares UltraShort Dow30 ETF (NYSEArca: DXD)
- ProShares UltraPro Short QQQ ETF (NYSEArca: SQQQ)
- ProShares UltraShort MSCI Brazil ETF (NYSEArca: BZQ)
- ProShares UltraPro Short MidCap 400 ETF (NYSEArca: SMDD)
- ProShares UltraShort Consumer Services ETF (NYSEArca: SCC)
- ProShares UltraShort Russell 1000 Growth ETF (NYSEArca: SFK)
1-For-5 Reverse Splits
- ProShares UltraPro Short S&P 500 ETF (NYSEArca: SPXU)
- ProShares UltraShort Silver ETF (NYSEArca: ZSL)
- ProShares UltraPro Short Russell 2000 ETF (NYSEArca: SRTY)
- ProShares Ultra DJ-UBS Natural Gas ETF (NYSEArca: BOIL)
- ProShares UltraShort Russell 3000 ETF (NYSEArca: TWQ)
This week, the NYSE expects to hear from the SEC. What will it mean for ETF investors?
Our annual fixed-income conference is coming up in a little more than a week and I can’t wait.
When it comes to reinvesting dividends, mutual funds have ETFs beat.
With VIX spiking, it’s tempting to pile in or bet against it. Both are a bad idea.