EGA Emerging Global Shares (EGShares) announced today a 2-for-1 stock split for three of its exchange traded funds (ETFs), and a 3-for-1 stock split for one of its ETFs. A 2-for-1 stock split will be conducted for EGShares’ Emerging Markets Composite ETF (NYSE:EEG); Emerging Markets Energy ETF (NYSE:EEO); and Emerging Markets Financials ETF (NYSE:EFN). A 3-for-1 stock split will be conducted for the company’s Emerging Markets Metals/Mining ETF (NYSE:EMT).
“At EGShares, our goal is to provide both individual and institutional investors with exposure to emerging markets in the most efficient manner,” said Robert Holderith, President and CEO of EGShares. “With the performance of emerging market equities in the last 18 months, an analysis of our funds led us to the conclusion that four of our ETFs were being offered at prices which may put them out of the reach of some investors interested in buying 100 or more shares. The decision to split these stocks is perfectly aligned with our mission of providing investors with access to some of the world’s fastest growing economies.”
The 2-for-1 split will lower the share price of each of EEG, EEO and EFN by half their pre-split level and double the number of outstanding shares. The 3-for-1 split will lower the share price of EMT by a third its pre-split level and triple the number of outstanding shares.
The share split allows each shareholder-of-record of EEG, EEO and EFN at the close of business on September 13, 2010 to receive one additional share for every share of the ETF held on that date. Each EMT shareholder-of-record, at the close of business on September 13, 2010, will receive two additional shares for every share of the ETF held on that date.
The shares will be payable after the close of trading on September 15, 2010.
The shares will trade at the new split-adjusted basis beginning September 16, 2010. The additional shares are expected to be distributed to shareholder accounts on September 21, 2010.
About Emerging Global Advisors LLC
Emerging Global Advisors LLC (EGA) is an independent investment advisory firm and the sponsor of the EGShares family of Exchange-Traded Funds. The firm’s thematic research focuses primarily on investor opportunities in the emerging markets. More information on the firm and its ETF products can be found at www.egshares.com. EGShares Exchange-Traded Funds are distributed by ALPS Distributors, Inc.
Carefully consider the Fund’s investment objectives, risk factors and charges and expenses before investing. This and other information can be found in the Funds’ prospectuses, which may be obtained by calling 1-888-800-4EGS (4347) or by visiting the fund’s website www.egshares.com to view or download a prospectus. Read the prospectus carefully before investing. Investing involves risk, including possible loss of principal. These funds are new and not suitable for all investors.
ETFs are subject to risks similar to those of stocks.
Emerging market investments do involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles, from economic or political instability in other nations or increased volatility and lower trading volume. This fund will concentrate its investments in issuers of one or more particular industries to the same extent that its Underlying Index is so concentrated and to the extent permitted by applicable regulatory guidance. Concentration risk results from maintaining exposure to issuers conducting business in a specific industry.