Company Website:
http://www.proshares.com
BETHESDA, Md. -- (Business Wire)
ProShares,
a premier provider of ETFs, announced today forward and reverse share
splits on 10 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:
All forward splits will apply to shareholders of record as of the close
of the markets on July 12, 2017, payable after the close of the markets
on July 14, 2017. The funds will trade at their post-split prices on
July 17, 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:
|
| |
| |
| |
Period |
| # of Shares Owned |
| Hypothetical NAV |
| Value of Shares |
Pre-Split
|
|
100
|
|
$100.00
|
|
$10,000.00
|
Post-Split
|
|
200
|
|
$50.00
|
|
$10,000.00
|
| | | | | |
|
Reverse Splits
Three ETFs will reverse split shares at the following split ratios:
All reverse splits will be effective at the market open on July 17,
2017, when the funds will begin trading at their post-split price. The
ticker symbol for the funds will not change. All funds undergoing a
reverse split will be issued a new CUSIP number, 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:
|
| |
| |
| |
Period |
| # of Shares Owned |
| Hypothetical NAV |
| Value of Shares |
Pre-Split
|
|
1,000
|
|
$10.00
|
|
$10,000.00
|
Post-Split
|
|
250
|
|
$40.00
|
|
$10,000.00
|
| | | | | |
|
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-to-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.
June 27, 2017
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. 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. VIXY, SVXY 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. These funds are generally intended for short-term
investment horizons, and investors holding shares over longer-term
periods may be subject to increased risk of loss. The assets these ETFs
invest in can be highly volatile, and the funds may experience large
losses. There have been potential negative impacts from rolling futures
positions and extended periods where the strategies utilized by the ETFs
have caused significant and sustained losses. The value of the shares of
the funds relate directly to the value of, and realized profit or loss
from, the financial instruments and other assets held by the funds.
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.
ProShares are distributed by SEI Investments Distribution Co., which is
not affiliated with the funds' advisor or sponsor.
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Contacts:
Media:
Hewes Communications, Inc.
Tucker Hewes,
212.207.9451
tucker@hewescomm.com
or
Investor:
ProShares
866.776.5125
ProShares.com
Source: ProShares
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