State Street Global Advisors (SSGA) has announced reverse 1:2 share splits on two municipal bond SPDR exchange traded funds (ETFs) – the SPDR Nuveen Barclays Short Term Municipal Bond ETF (SHM) and and the SPDR Nuveen Barclays Municipal Bond ETF (TFI).
Reverse splits lower the number of shares outstanding and increase the funds’ share price. The aggregate market value of shares outstanding is not impacted.
“We are always evaluating our product line-up and exploring ways to enhance our SPDR ETF offerings to provide the best solutions for our clients,” says Scott Ebner, senior managing director of Product Development & Research at State Street Global Advisors.
As a result of the reverse splits, shareholders of SHM and TFI could potentially hold fractional shares. In lieu of these fractional shares, shareholders may receive cash following the split.