Barclays Global Investors has announced that the board of directors of iShares and the board of trustees of iShares Trust have authorised a split of the shares of 15 iShares exchange-trade
Barclays Global Investors has announced that the board of directors of iShares and the board of trustees of iShares Trust have authorised a split of the shares of 15 iShares exchange-traded funds as of the close of business on July 21, payable after the close of trading on July 23.
The share splits range from 2-for-1 to 10-for-1 Fund shares will begin trading on a split-adjusted basis on July 24. Post-split shares are should be distributed to shareholders’ accounts on July 28.
A split has the effect of lowering the share price by increasing the number of shares outstanding, but the total value of shares outstanding is not affected. For example, a 2-for-1 split will halve the share price of an ETF and double the number of outstanding shares.
The funds affected include 15 ETFs traded on NYSE Arca, of which seven are subject to a 2-for-1 split: iShares S&P SmallCap 600 Growth Index Fund, iShares S&P 1500 Index Fund, iShares MSCI South Africa Fund, iShares S&P/Topix 150 Index Fund, iShares MSCI EMU Index Fund, iShares Russell Midcap Growth Index Fund and iShares S&P Europe 350 Index Fund.
Six others will undergo a 3-for-1 split, the iShares FTSE/Xinhua China 25 Index Fund, iShares MSCI Emerging Markets Index Fund, iShares MSCI Pacific ex-Japan Index Fund, iShares Russell Midcap Value Index Fund, iShares S&P Global Energy Sector Index Fund, iShares S&P North American Natural Resources Sector Index Fund and iShares Dow Jones Energy Sector Fund. The iShares S&P Latin America 40 Index Fund will undergo a 5-for-1 split, while the board of Barclays Global Investors International has authorised a 10-for-1 split of the shares of the USD3.4bn iShares Silver Trust.
Barclays Global Investors is the largest US ETF provider with more than 160 iShares funds and USD300bn in assets under management at the end of June. The iShares MSCI Emerging Markets Index Fund is one of the most actively traded ETFs with some USD3bn in average daily dollar trading volume so far this year. Worldwide, BGI offers more than 320 iShares funds for institutional and individual investors.