Direxion Sets 16 Regular, Reverse Splits

March 04, 2013

Direxion, responding to market gains since summer, lines up share splits on 16 ETFs.

Direxion Shares, the No. 2 purveyor of leveraged and inverse ETFs, plans to split shares on a total of 16 triple-exposure ETFs—eight regular and eight reverse splits—to respectively lift or reduce each fund’s share price to a level more attractive to investors following several months of rallying equities market.

Among the splits, which are effective on April 2 to shareholders of record as of the close on April 1, is a 1-for-5 reverse split on the Direxion Daily Emerging Markets Bear 3X Shares (NYSEArca: EDZ) and a 3-for-1 regular split on its long sibling, the Direxion Daily Emerging Markets Bull 3X Shares (NYSEArca: EDC).

EDZ, the inverse fund, has fallen to less than $10 a share since early last summer while EDC has risen to more than $100 a share. Those moves in share price came on the heels of a formal commitment by the European Central Bank to serve as a lender of last resort to deeply indebted countries in the debt-laden eurozone. The pledge helped stabilize markets that had been dogged by eurozone-related uncertainty.

The 16 splits, including those on EDC and EDZ, as well as each ETF’s approximate share-price change calculated on the price of the fund as of Friday’s close, are as follows:

1-for-6 reverse split

  • Direxion Daily Energy Bear 3X Shares (NYSEArca: ERY), which will lift the share price sixfold from $5.89 to $35.34 per share

 

1-for-5 reverse splits

  • Direxion Daily China Bear 3X Shares (NYSEArca: YANG), which will lift the share price fivefold from around $10.83 to $55.15 per share
  • Direxion Daily Emerging Markets Bear 3X Shares (NYSEArca: EDZ), which will lift the share price fivefold from $9.50 to $47.50 per share
  • Direxion Daily Technology Bear 3X Shares (NYSEArca: TECS), which will lift the share price fivefold from $8.47 to $42.35 per share
  • Direxion Daily Gold Miners Bull 3X Shares (NYSEArca: NUGT), which will lift the share price fivefold from $5.41 to $27.05 per share

 

1-for-4 reverse split

  • Direxion Daily Financial Bear 3X Shares (NYSEArca: FAZ), which will lift the share price fourfold from $11.78 to $47.12 per share
  • Direxion Daily Small Cap Bear 3X Shares (NYSEArca: TZA), which will lift the share price fourfold from $10.51 to $42.04 per share

 

1-for-3 reverse split

  • Direxion Daily Mid Cap Bear 3X Shares (NYSEArca: MIDZ), which will lift the share price threefold from $12.84 to $38.52 per share

 

3-for-1 forward split

  • Direxion Daily Financial Bull 3X Shares (NYSEArca: FAS) will move from $148.60 to $49.53 per share
  • Direxion Daily Retail Bull 3X Shares (NYSEArca: RETL) will move from $120.91 to $40.30 per share
  • Direxion Daily Emerging Markets Bull 3X Shares (NYSEArca: EDC) will move from $100.96 to $33.65 per share
  • Direxion Daily S&P 500 Bull 3X Shares (NYSEArca: SPXL) will move from $105.82 to $35.27 per share

 

2-for-1 forward split

  • Direxion Daily Real Estate Bull 3X Shares (NYSEArca: DRN), which will cut the share price in half from $89.99 to $44.99 per share
  • Direxion Daily Latin America Bull 3X Shares (NYSEArca: LBJ), which will cut the share price in half from $72.02 to $36.01 per share
  • Direxion Daily 7-10 Year Treasury Bull 3X Shares (NYSEArca: TYD), which will cut the share price in half from $85.77 to $42.88
  • Direxion Daily Small Cap Bull 3X Shares (NYSEArca: TNA), which will cut the share price in half from $79.30 to $39.65

 

The splits won’t cost shareholders anything, nor will they change the value of the investments, except in connection with so-called fractional shares—the “leftover” shares that can’t be split.

Fractional shares will be paid out to investors for the post-split cash value of their net asset values, Direxion said.

 

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