ProShares Plans Splits, Reverse Splits

February 18, 2011

ProShares, the Bethesda, Md.-based ETF provider known for its extensive roster of leveraged and inverse funds, announced share splits on four of its ETFs and reverse share splits on another 20, effective next week.

All the share splits, which will apply to shareholders of record after the close on Feb. 22 and that will be payable after the close on Feb. 24, will decrease the price per share and increase the number of shares outstanding, but won’t change the value of a shareholder’s investment, the company said today in a press release. Starting Feb. 25, the funds will begin trading at their post-split prices.

The funds splitting shares, their respective tickers and applicable split ratios are:

  • ProShares UltraPro QQQ (NYSEArca: TQQQ), 2-for-1
  • ProShares UltraPro Russell 2000 (NYSEArca: URTY), 2-for-1
  • ProShares UltraPro MidCap 400 (NYSEArca: UMDD), 2-for-1
  • ProShares UltraPro S&P 500 (NYSEArca: UPRO), 3-for-1

 

Thirteen funds will undergo reverse splits at the close on Feb. 24 on a 1-to-4 basis, and another seven will do so on a 1-to-5 ratio.

The reverse splits increase the price per share, but decrease the number of shares outstanding.

Splits can lead to fractional shares for investors not holding an exact multiple of the reverse split. Such fractional shares will be redeemed for cash, which can mean an investor might realize gains or losses and be taxed on those, the company said in the statement.

The funds undergoing 1-for-4 reverse splits are:

  • ProShares UltraShort MSCI Europe (NYSEArca: EPV)
  • ProShares UltraShort MidCap 400 (NYSEArca: MZZ)
  • ProShares UltraShort Technology (NYSEArca: REW)
  • ProShares UltraShort SmallCap 600 (NYSEArca: SDD)
  • ProShares UltraShort Russell MidCap Growth (NYSEArca: SDK)
  • ProShares UltraShort Industrials (NYSEArca: SIJ)
  • ProShares UltraShort Russell 2000 Value (NYSEArca: SJH)
  • ProShares UltraShort Russell MidCap Value (NYSEArca: SJL)
  • ProShares UltraShort Financials (NYSEArca: SKF)
  • ProShares UltraShort MSCI Mexico Investable Market (NYSEArca: SMK)
  • ProShares UltraShort Russell 2000 (NYSEArca: TWM)
  • ProShares Ultra DJ-UBS Crude Oil (NYSEArca: UCO)
  • ProShares UltraShort Silver (NYSEArca: ZSL)

 

Those undergoing 1-for-5 splits are:

  • ProShares UltraShort DJ-UBS Commodity (NYSEArca: CMD)
  • ProShares UltraShort MSCI Pacific ex-Japan (NYSEArca: JPX)
  • ProShares UltraShort QQQ (NYSEArca: QID)
  • ProShares UltraShort DJ-UBS Crude Oil (NYSEArca: SCO)
  • ProShares UltraShort Russell 2000 Growth (NYSEArca: SKK)
  • ProShares UltraShort Semiconductors (NYSEArca: SSG)
  • ProShares UltraShort Telecommunications (NYSEArca: TLL)

 

ProShares has more than $25 billion in assets across its 115 ETFs.

 

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