Market Vectors To Reverse-Split 7 ETFs

By
Olly Ludwig
June 24, 2013
Share:

Market Vectors, the exchange-traded fund firm owned by Van Eck Global, has set reverse share splits effective next month on seven of its ETFs, including the market’s only fund focused on Egypt, to ensure that bid/ask spreads on the security don’t grow too large as a percentage of its declining share price.

The splits will be effective on July 1, Market Vectors said in a press release June 21, and the company noted that while none of the fund tickers will change, their CUSIPS will.

Of the seven reverse splits, three are 1-for-3 and the other four are 1-for-4. The splits and each ETF’s new CUSIP are as follows:

  • Market Vectors Global Alternative Energy ETF (NYSEArca: GEX), 1-for-3, new CUSIP 57061R593
  • Market Vectors Russia Small?Cap ETF (NYSEArca: RSXJ), 1-for-3, new CUSIP: 57061R585
  • Market Vectors Uranium+Nuclear Energy ETF (NYSEArca: NLR), 1-for-3, new CUSIP: 57061R577
  • Market Vectors Egypt Index ETF (NYSEArca: EGPT), 1-for-4, new CUSIP: 57061R569
  • Market Vectors India Small?Cap Index ETF (NYSEArca: SCIF), 1-for-4, new CUSIP: 57061R551
  • Market Vectors Junior Gold Miners ETF (NYSEArca: GDXJ), 1-for-4, new CUSIP: 57061R544
  • Market Vectors Rare Earth/Strategic Metals ETF (NYSEArca: REMX), 1-for-4, new CUSIP: 57061R536

 

The total market value of the shares outstanding won’t be affected by the reverse splits, though fractional shares that result from the splits will be redeemed for cash, the company said.

Such cash redemptions could result in tax consequences for some shareholders, though the split is otherwise not a taxable event, Market Vectors said.

Market Vectors is the seventh-biggest U.S. ETF sponsor, with 56 ETFs that together have more than $21.5 billion in assets under management, according to data compiled by IndexUniverse.

 

ETF.COM CHANNELS

Want to learn more about smart-beta ETFs? Check out our smart-beta guide, essentials library and ETF screener!

ETF DAILY DATA

Vanguard's all-market fund 'VTI' led inflows on Thursday, April 23, as total U.S.-listed ETF assets reached a record of $2.163 trillion.

'VTI,' 'VB' and 'VGK' paced Vanguard's issuer-leading inflows on Thursday, April 23, as total U.S.-listed ETF assets rose to a record $2.163 trillion.

ETF.COM ANALYST BLOGS

By Dave Nadig

Buying and selling ETFs wisely means understanding the difference between being a buyer and a seller.

By Olivier Ludwig

Saving the world as an eco-conscious investor is a tough row to hoe, but ETFs make it a bit easier.

By Olivier Ludwig

If you’re puzzled by Israel’s relatively strong stock market performance, don’t forget you’re taking measure of a developed country.

By Olivier Ludwig

If only Fidelity could speak freely about all the positive things it does for investors.