ProShares has announced a reverse share split on one of its ETFs, the ProShares Ultra VIX Short-Term Futures ETF.
The reverse split will not change the value of a shareholder’s investment. UVXY is the only ETF in the United States offering magnified exposure to VIX futures.
UVXY will reverse split 1-for-6. The reverse split will apply to shareholders of record as of the close of the markets on March 7, 2012. The fund will trade at its post-split price on 8 March, 2012. The ticker symbol for the fund will not change. The fund will be issued a new CUSIP number – 74347W544
The reverse split will increase the price per share of the fund with a proportionate decrease in the number of shares outstanding. For a 1-for-6 reverse split, every six pre-split shares held by a shareholder will result in the receipt of one post-split share, which will be priced six times higher than the net asset value ("NAV") of a pre-split share.
For shareholders who hold quantities of shares that are not an exact multiple of the reverse split ratio (for example, not a multiple of 6 for a 1-to-6 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.
