Company Website:
http://www.proshares.com
BETHESDA, Md. -- (Business Wire)
ProShares,
a premier provider of ETFs, announced today forward and reverse share
splits on 13 of its ETFs. The splits will not change the total value of
a shareholder’s investment.
Forward Splits
Seven ETFs will forward split shares 2-for-1:
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Ticker |
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| ProShares ETF |
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| Split Ratio |
SCO
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Ultra Short Bloomberg Crude Oil
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2:1
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LTL
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Ultra Telecommunications
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2:1
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UCC
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Ultra Consumer Services
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2:1
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TQQQ
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UltraPro QQQ
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2:1
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FINU
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UltraPro Financial Select Sector
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2:1
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USD
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Ultra Semiconductors
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2:1
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KRU
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Ultra S&P Regional Banking
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2:1
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All forward splits will apply to shareholders of record as of the close
of the markets on Jan. 9, 2017, payable after the close of the markets
on Jan. 11, 2017. The funds will trade at their post-split prices on
Jan. 12, 2017. The ticker symbols and CUSIP numbers for the funds will
not change.
The forward splits will decrease the price per share of each fund with a
proportionate increase in the number of shares outstanding. For example,
for the 2-for-1 splits, every pre-split share will result in the receipt
of two post-split shares, which will be priced at one-half the net asset
value (“NAV”) of a pre-split share.
Illustration of a Forward Split
The following table shows the effect of a hypothetical 2-for-1 split:
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Period |
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| # of Shares Owned |
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| Hypothetical NAV |
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| Value of Shares |
Pre-Split
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100
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$100.00
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$10,000.00
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Post-Split
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200
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$50.00
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$10,000.00
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Reverse Splits
Six ETFs will reverse split shares at the following split ratios:
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Ticker |
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| ProShares ETF |
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| Split Ratio |
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| Old CUSIP |
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| New CUSIP |
FINZ
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UltraPro Short Financial Select Sector
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1:2
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74348A517
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74348A186
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UCO
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Ultra Bloomberg Crude Oil
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1:2
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74347W320
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74347W247
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SDOW
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UltraPro Short Dow30
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1:4
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74347X112
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74348A178
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SQQQ
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UltraPro Short QQQ
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1:4
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74348A418
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74348A160
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SRTY
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UltraPro Short Russell2000
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1:4
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74348A335
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74348A152
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UVXY
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Ultra VIX Short-Term Futures ETF
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1:5
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74347W254
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74347W239
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All reverse splits will be effective at the market open on Jan. 12,
2017, when the funds will begin trading at their post-split price. The
ticker symbols for the funds will not change. All funds undergoing a
reverse split will be issued new CUSIP numbers, listed above.
The reverse splits will increase the price per share of each fund with a
proportionate decrease in the number of shares outstanding. For example,
for a 1-for-4 reverse split, every four pre-split shares will result in
the receipt of one post-split share, which will be priced four times
higher than the NAV of a pre-split share.
Illustration of a Reverse Split
The following table shows the effect of a hypothetical 1-for-4 reverse
split:
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Period |
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| # of Shares Owned |
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| Hypothetical NAV |
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| Value of Shares |
Pre-Split
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1,000
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$10.00
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$10,000.00
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Post-Split
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250
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$40.00
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$10,000.00
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Fractional Shares from Reverse Splits
For shareholders who hold quantities of shares that are not an exact
multiple of the reverse split ratio (for example, not a multiple of 4
for a 1-for-4 reverse split), the reverse split will result in the
creation of a fractional share. Post-reverse split fractional shares
will be redeemed for cash and sent to your broker of record. This
redemption may cause some shareholders to realize gains or losses, which
could be a taxable event for those shareholders.
About ProShares
ProShares
has been at the forefront of the ETF revolution since 2006. ProShares
now offers one of the largest lineups of ETFs, with more than $27
billion in assets. The company is the leader in strategies such as
dividend growth, alternative and geared (leveraged and inverse).
ProShares continues to innovate with products that provide strategic and
tactical opportunities for investors to manage risk and enhance returns.
Geared (Short or Ultra) ProShares ETFs seek returns that are either 3x,
2x, -1x, -2x or -3x the return of an index or other benchmark (target) for
a single day, as measured from one NAV calculation to the next.
Due to the compounding of daily returns, ProShares' returns over periods
other than one day will likely differ in amount and possibly direction
from the target return for the same period. These effects may be more
pronounced in funds with larger or inverse multiples and in funds with
volatile benchmarks. Investors should monitor their ProShares holdings
consistent with their strategies, as frequently as daily. For more on
correlation, leverage and other risks, please read the prospectus.
Investing involves risk, including the possible loss of principal. ProShares
ETFs are generally non-diversified, and each entails certain risks,
which may include risk associated with the use of derivatives (swap
agreements, futures contracts and similar instruments), imperfect
benchmark correlation, leverage and market price variance, all of which
can increase volatility and decrease performance. Short positions lose
value as security prices increase. Narrowly focused investments
typically exhibit higher volatility. Investments in smaller companies
typically exhibit higher volatility. Smaller company stocks also may
trade at greater spreads or lower trading volumes, and may be less
liquid than stocks of larger companies. There are additional risks
related to commodity investments due to large institutional purchases or
sales, and natural and technological factors such as severe weather,
unusual climate change, and development and depletions of alternative
resources. Certain derivative instruments will subject the fund to
counterparty risk and credit risk, which could result in significant
losses for the fund. Please see summary and full prospectuses for a more
complete description of risks. There is no guarantee any ProShares
ETF will achieve its investment objective.
Investing in ETFs involves a substantial risk of loss. UCO, SCO and
UVXY are not investment companies regulated under the Investment Company
Act of 1940 and are not afforded its protections. Please read the
prospectus carefully before investing. These ETFs generate a K-1 tax
form. UVXY is intended for short-term investment horizons, and investors
holding shares over longer-term periods may be subject to increased risk
of loss. The assets the ETF invest in can be highly volatile, and the
fund may experience large losses. There have been potential negative
impacts from rolling futures positions and extended periods where the
strategy utilized by the ETF have caused significant and sustained
losses. The value of the shares of the fund relate directly to the value
of, and realized profit or loss from, the financial instruments and
other assets held by the fund. Fluctuations in the price of those assets
could adversely affect an investment in the shares. The level of the VIX
has historically reverted to a long-term mean (i.e., average), and any
change in the VIX will likely continue to be constrained. As such, the
potential upside of exposure to VIX futures may be limited and any gains
subject to significant and unexpected reversals. Several factors may
affect the price and/or liquidity of VIX futures and other assets,
including: economic, financial, political, regulatory, geographical,
biological or judicial events that affect the level of VIX futures
indexes or prevailing market prices and forward volatility levels in
U.S. stock markets, the S&P 500 or its securities, and prevailing market
prices of options on the S&P 500 and the VIX, the VIX itself, relevant
VIX futures contracts, or any other financial instruments related to the
S&P 500, VIX, or VIX futures; interest rates; inflation rates and
investors' expectations concerning inflation; supply, demand, and
hedging activities in the listed and OTC equity derivatives markets;
disruptions in trading of the S&P 500, its futures or options; and
contango or backwardation in the VIX futures market.
Carefully consider the investment objectives, risks, charges and
expenses of ProShares before investing. This and other information can
be found in their summary and full prospectuses. Read them carefully
before investing.
This information must be accompanied or preceded by a current
ProShares Trust II prospectus (http://www.proshares.com/funds/trust_ii_prospectuses.html).
ProShares Trust II (issuer) has filed a registration statement
(including a prospectus) with the SEC for the offering to which this
communication relates. Before you invest, you should read the prospectus
in that registration statement and other documents the issuer has filed
with the SEC for more complete information about the issuer and this
offering. You may get these documents for free by visiting EDGAR on the
SEC website at sec.gov. Alternatively, the issuer will arrange to send
you the prospectus if you request it by calling toll-free 866.776.5125
or visiting ProShares.com.
ProShares are distributed by SEI Investments Distribution Co., which is
not affiliated with the funds' advisor or sponsor.
View source version on businesswire.com: http://www.businesswire.com/news/home/20161222005760/en/
Contacts:
Media:
Hewes Communications, Inc.
Tucker Hewes,
212-207-9451
tucker@hewescomm.com
or
Investors:
ProShares,
866-776-5125
ProShares.com
Source: ProShares
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