ProShares, the nation’s fourth most successful exchange traded fund (ETF) company,1announced today share splits on six of its ETFs and reverse share splits on 11 of its ETFs. The splits and reverse splits will not change the value of a shareholder’s investment.
Splits
Four ETFs will split shares 2-for-1.
| Ticker | Fund | Split Ratio |
|---|---|---|
| (NYSEARCA:QLD) | ProShares Ultra QQQ | 2:1 |
| (NYSEARCA:TQQQ) | ProShares UltraPro QQQ | 2:1 |
| (NYSEARCA:UBT) | ProShares Ultra 20+ Year Treasury | 2:1 |
| (NYSEARCA:UST) | ProShares Ultra 7-10 Year Treasury | 2:1 |
Two ETFs will split shares 3-for-1.
| Ticker | Fund | Split Ratio |
|---|---|---|
| (NYSEARCA:UDOW) | ProShares UltraPro Dow30 | 3:1 |
| (NYSEARCA:KOLD) | ProShares UltraShort DJ-UBS Natural Gas | 3:1 |
All splits will apply to shareholders of record as of the close of the markets on May 8, 2012, payable after the close of the markets on May 10, 2012. The funds will trade at their post-split price on May 11, 2012. The ticker symbol and CUSIP numbers for the funds will not change.
The 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 held by a shareholder will result in the receipt of two post-split shares, which will be priced at half of the net asset value (“NAV”) of a pre-split share.
Illustration of a 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
Six funds will reverse split shares 1-for-4.
| Ticker | Fund | Split Ratio | Old CUSIP | New CUSIP |
|---|---|---|---|---|
| (NYSEARCA:DXD) | ProShares UltraShort Dow30 | 1:4 | 74347R867 | 74348A590 |
| (NYSEARCA:SQQQ) | ProShares UltraPro Short QQQ | 1:4 | 74347X666 | 74348A665 |
| (NYSEARCA:BZQ) | ProShares UltraShort MSCI Brazil | 1:4 | 74347X401 | 74348A673 |
| (NYSEARCA:SMDD) | ProShares UltraPro Short MidCap400 | 1:4 | 74347X682 | 74348A657 |
| (NYSEARCA:SCC) | ProShares UltraShort Consumer Services | 1:4 | 74347R636 | 74348A616 |
| (NYSEARCA:SFK) | ProShares UltraShort Russell1000 Growth | 1:4 | 74347R461 | 74348A624 |
Five funds will reverse split shares 1-for-5.
| Ticker | Fund | Split Ratio | Old CUSIP | New CUSIP |
|---|---|---|---|---|
| (NYSEARCA:SPXU) | ProShares UltraPro Short S&P500 | 1:5 | 74347X856 | 74348A632 |
| (NYSEARCA:ZSL) | ProShares UltraShort Silver | 1:5 | 74347W643 | 74347W114 |
| (NYSEARCA:SRTY) | ProShares UltraPro Short Russell2000 | 1:5 | 74347X690 | 74348A640 |
| (NYSEARCA:BOIL) | ProShares Ultra DJ-UBS Natural Gas | 1:5 | 74347W775 | 74347W122 |
| (NYSEARCA:TWQ) | ProShares UltraShort Russell3000 | 1:5 | 74347X203 | 74348A681 |
All reverse splits will apply to shareholders of record as of the close of the markets on May 10, 2012. The funds will trade at their post-split prices on May 11, 2012. The ticker symbols for the funds will not change. All funds undergoing a reverse split will be issued a new CUSIP number.
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 the 1-for-4 reverse splits, every four pre-split shares held by a shareholder will result in the receipt of one post-split share, which will be priced four times higher than the net asset value (“NAV”) of a pre-split share.
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.
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 |
About ProShares
ProShares is the country’s fourth most successful exchange traded fund (ETF) company,1 with 132 funds and nearly $23 billion in assets.2 ProShares’ lineup includes the largest family of geared (leveraged and inverse) ETFs.3 ProShare Advisors and ProShare Capital Management are affiliated with ProFund Advisors, which was founded in 1997. Together, they manage more than $28 billion in ETF and mutual fund assets.2
Media contact:
Tucker Hewes, Hewes Communications, Inc., 212-207-9451, [email protected]
Financial Professional contact:
ProShares, 866.776.5125, ProShares.com
Apr 25, 2012
1 Source: Financial Research Corporation, based on analysis of organic net sales of U.S. exchange traded products (as of 6/30/2011). Includes products launched by their current management company; excludes products acquired through purchase or merger.
2 Assets as of 3/31/12
3 Source: Lipper, based on a worldwide analysis of all known providers of funds in these categories. The analysis covered ETFs and ETNs by the number of funds and assets (as of 6/30/2011).
Disclosure: