Direxion, the Newton, Mass.-based money management firm known for its triple-exposure exchange-traded funds, plans reverse share splits on six of its ETFs applying to shareholders of record after the Nov. 9 market close. Reverse splits are designed to raise per-share prices on each of the securities.
Five will be 1-for-5 reverse splits, Direxion said in a press release. Those affected securities are:
• Direxion Daily Real Estate Bear 3x Shares (NYSEArca: DRV)
• Direxion Daily Emerging Markets Bull 3x Shares (NYSEArca: EDC)
• Direxion Daily Financial Bull 3x Shares (NYSEArca: FAS)
• Direxion Daily Latin America Bull 3x Shares (NYSEArca: LBJ)
• Direxion Daly 20+ Treasury Bear 3x Shares (NYSEArca: TMV)
The sixth will be a 1-for-3 reverse split, the company said. That ETF is:
• Direxion Daily Russia Bull 3x Shares (NYSEArca: RUSL)
Each of the ETFs will be offered on a post-split basis on Nov. 10, Direxion said.
The company also noted that the market value of each ETF won’t be affected by the actions, though it did say that fractional shares resulting from the reverse splits would be redeemed.