ProShares Sets Share Splits On 11 ETFs

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ProShares, the world's biggest purveyor of geared ETFs, set share splits on 11 of its ETFs, including nine reverse splits. Among the latter is a 1-for-4 split on the ProShares UltraShort 20+ Year Treasury ETF (NYSEArca:TBT), the world's single-biggest inverse and leveraged exchange-traded fund.

All the splits are payable on Oct. 4 to shareholders of record on Oct. 2, the company said in a press release. The straight splits are aimed at bringing spiking share prices back down to more enticing levels, while the reverse splits are meant mostly to raise share prices that have declined in recent months.


The reverse splits are each 1-for-4, meaning each ETF's share price will be about four times its presplit level. The ETFs and the price decline of each ETF in the past year are as follows:

  • ProShares UltraShort 20+ Year Treasury ETF (NYSEArca:TBT), a double-exposure short fund that's down 16 percent. After the split and using today's value as a reference point, TBT will be worth about $64 a share. TBT has assets of $3.07 billion.
  • ProShares UltraShort S&P500 ETF (NYSEArca:SDS), a double-exposure short fund that's down more than 47 percent. After the split and using today's value as a reference point, SDS will be worth about $53.50 a share. SDS has assets of $1.86 billion.
  • ProShares UltraShort Gold ETF (NYSEArca:GLL), a double-exposure inverse fund that's down about 25 percent. After the split and using today's value as a reference point, GLL will be worth a bit more than $57 a share. GLL has assets of $92.1 million.
  • ProShares UltraPro Short Dow30 ETF (NYSEArca:SDOW), a double-exposure fund that's fallen by more than 60 percent. After the split and using today's value as a reference point, SDOW will be worth almost $65 a share. SDOW has assets of almost $100 million.
  • ProShares UltraShort Basic Materials ETF (NYSEArca:SMN), a double-exposure short fund that's lost almost half its value. After the split and using today's value as a reference point, SMN will be worth a bit more than $57 a share. SMN has assets of $39.7 million.
  • ProShares Ultra MSCI Brazil ETF (NYSEArca:UBR), a double-exposure long fund that's risen 3.28 percent in the past year. After the split and using today's value as a reference point, UBR will be worth a bit more than $69 a share. UBR has assets of $10.5 million.
  • ProShares UltraShort Health Care ETF (NYSEArca:RXD), a double-exposure short fund that's fallen around 48 percent. After the split and using today's value as a reference point, RXD will be worth about $55 a share. RXD has assets $5.3 million.
  • ProShares UltraShort Nasdaq Biotechnology ETF (NYSEArca:BIS), a double-exposure short fund that's fallen almost 63 percent in the past year. After the split and using today's value as a reference point, BIS will be worth about $64 a share. BIS has $4.7 million.
  • ProShares UltraShort Consumer Goods ETF (NYSEArca:SZK), a double-exposure short fund that's fallen almost 39 percent in the past year. After the split and using today's value as a reference point, SZK will be worth about $64 a share. SZK has assets of $2.4 million.

The straight splits are both 2-for-1, meaning each ETF will end up having twice its presplit value. The ETFs and share price movements of each one in the past year are as follows:

  • ProShares Ultra Nasdaq Biotechnology ETF (NYSEArca:BIB), a double-long fund that's jumped 120 percent in the past year. Its post-split value, based on prices as of Sept. 24, will be around $64 a share.
  • ProShares Short VIX Short-Term Futures ETF (NYSEArca:SVXY), a double-exposure short fund that has shot up more than 240 percent in the past year. Its post-split value based on prices as of Sept. 24 will be around $72 a share.

ProShares stressed in its press release that share splits don't change the underlying value of an investment.

That said, regarding the reverse splits, shareholders who hold quantities of shares that are not an exact multiple of the 1-for-4 reverse split ratio will end up with fractional shares.

Post-reverse split fractional shares will be redeemed for cash and sent to a shareholder's broker of record.

This redemption may cause some shareholders to realize gains or losses, which could be a taxable event for those shareholders, ProShares said.

All the funds will begin trading at their post-split prices on Friday, Oct. 5, and all will retain their existing ticker symbols.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , ETFs

Referenced Stocks: BIB , SDOW , SMN , TBT , UBR

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