ProShares, First Trust Make Changes To ETFs
The issuers were among a number of firms making changes to expense ratios and enacting splits.
This week saw a few issuers making expense ratio changes to their ETFs or splitting shares. Among them was ProShares, which announced splits for a dozen of its funds, effective Jan. 21, 2021.
Those scheduled splits include 2-for-1 forward splits for the ProShares Ultra Health Care ETF (RXL) and the ProShares UltraPro QQQ ETF (TQQQ).
There are also 10 planned reverse splits, which include the following:
- ProShares UltraShort MidCap400 ETF (MZZ), 1 for 2
- ProShares UltraShort QQQ ETF (QID), 1 for 4
- ProShares UltraShort SmallCap600 ETF (SDD), 1 for 2
- ProShares UltraShort Utilities ETF (SDP), 1 for 2
- ProShares UltraShort Industrials ETF (SIJ), 1 for 2
- ProShares UltraShort Financials ETF (SKF), 1 for 2
- ProShares UltraPro Short MidCap400 ETF (SMDD), 1 for 2
- ProShares UltraPro Short S&P500 ETF (SPXU), 1 for 5
- ProShares UltraPro Short Russell2000 ETF (SRTY), 1 for 5
- ProShares UltraShort Russell2000 ETF (TWM), 1 for 4
Similarly, effective as of the close of markets today, Jan. 8, Direxion is enacting share splits on four of its funds. They are as follows:
- The Direxion Daily Retail Bull 3X Shares (RTL) will undergo a 5-for-1 forward split.
- The Direxion Daily Robotics, Artificial Intelligence, & Automation Index Bull 2X Shares (UBOT) will undergo a 5-for-1 forward split.
- The Direxion Daily S&P 500 High Beta Bear 3X Shares (HIBS) will undergo a 1-for-20 reverse split.
- The Direxion Daily S&P 500 Bear 3X Shares (SPXS) will undergo a 1-for-10 reverse split.
Expense Ratio Changes
First Trust and ALPS both made some changes to ETF expense ratios. For ALPS, this meant a 10-basis-point reduction in the expense ratio of the ALPS Clean Energy ETF (ACES) from 0.65% to 0.55%, while First Trust changed the fees on eight of its funds, effective Jan. 4, 2021.
Those changes are as follows:
- The expense ratio for the First Trust Active Factor Small Cap ETF (AFSM) increased from 0.75% to 0.77%.
- The expense ratio for the EquityCompass Risk Manager ETF (ERM) increased from 0.65% to 0.68%.
- The expense ratio for the First Trust CEF Income Opportunity ETF (FCEF) decreased from 3.21% to 2.91%.
- The expense ratio for the First Trust TCW Opportunistic Fixed Income ETF (FIXD) increased from 0.55% to 0.56%.
- The expense ratio for the First Trust Low Duration Strategic Focus ETF (LDSF) decreased from 0.82% to 0.77%.
- The expense ratio for the First Trust Municipal CEF Income Opportunity ETF (MCEF) increased from 2.59% to 2.65%.
- The expense ratio for the EquityCompass Tactical Risk Manager ETF (TERM) decreased from 0.73% to 0.67%
- The expense ratio for the First Trust TCW Unconstrained Plus Bond ETF (UCON) increased from 0.75% to 0.76%.
Contact Heather Bell at [email protected]