Though more apt to happen with leveraged funds, reverse splits
are a fact of life in the world of
. Proving that traditional long ETFs have be subject to reverse
splits, since the start of May, six Global X funds and
seven Market Vectors products
have been reverse split.
It is not a stretch to say that, at least officially, no ETF
sponsor is going to acknowledge the reverse split curse. Then
again, superstitious football players are reluctant to talk about
the Madden video game cover curse
A curse may just be in one's imagination, but the iPath
S&P 500 VIX Short-Term Futures ETN (NYSE:
) has undergone multiple reverse splits over the years, but its
looks like this
. However, some ETFs that have previously traveled down Reverse
Split Boulevard have recently been stellar performers. Consider
Alternative Energy Specifically, solar ETFs. The Guggenheim
Solar ETF (NYSE:
) and the Market Vectors Solar Energy ETF (NYSE:
) were both
reverse split in 2012
, also known as the dark days for solar stocks.
This year has brought a stunning reversal of fortune for solar
ETFs as TAN and KWT are the two best-performing non-leveraged
ETFs. However, there is a big gap between the two, 2,7000 basis
points in favor of TAN because TAN features a larger weight to
First Solar (NASDAQ:
), among other reasons. TAN also includes Elon Musk's Solar City
) among its lineup. KWT does not.
The Market Vectors Global Alternative Energy ETF (NYSE:
) was recently reverse split, though this was somewhat strange
since the ETF was performing well and trading in the
double-digits. In fact, GEX is the third-best non-leveraged ETF
this year behind TAN and KWT. GEX has an 11.4 percent weight to
some company called Tesla (NASDAQ:
) and that is probably helping the ETF surge this year.
Gold Miners The recent list of ETFs to be reverse split since
the start of May includes four gold miners funds. That group
includes the popular Market Vectors Junior Gold Miners ETF (NYSE:
). It is no secret that
gold miners have bounced in a big way
in recent weeks.
Even when including today's 3.5 percent loss, GDX is up more
than 21 percent since July 2, the day after its reverse split
went into effect. Three of the Global X ETFs that were recently
reverse split were <a href="
>mining funds: The Global X Gold Explorers ETFs (NYSE:
: The Global X Gold Explorers ETFs (NYSE:
), the Global X Junior Gold Miners ETF (NYSE:
) and the Global X Pure Gold Miners ETF (NYSE:
In the past month, that trio is up an average of 25.4 percent.
The Direxion Daily Gold Miners Bull 3X Shares (NYSE:
) was reverse split on April 2 and its total performance since
then is dreadful, but holding leveraged ETFs for four months at a
time is a no-no. Four weeks is a different story and over the
past four weeks, NUGT was up 54 percent heading into the start of
For more on ETFs, click .
(c) 2013 Benzinga.com. Benzinga does not provide investment
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