ProShares Announces ETF Reverse Share Split
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Bethesda, MD, February 27, 2012—ProShares, the nation’s fourth most successful exchange traded fund (ETF) company,1 announced today a reverse share split on one of its ETFs, the ProShares Ultra VIX Short-Term Futures ETF (NYSE: UVXY). 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 March 8, 2012. The ticker symbol for the fund will not change. The fund will be issued a new CUSIP number.
|Ticker||Fund||Split Ratio||Old CUSIP||New CUSIP|
|UVXY||ProShares Ultra VIX Short-Term Futures ETF||1:6||74347W635||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.
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 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.
Illustration of a Reverse Split
The following table shows the effect of a hypothetical 1-for-6 reverse split:
|Period||# of Shares Owned||Hypothetical NAV||Value of Shares|
ProShares is the country’s fourth most successful exchange traded fund (ETF) company,1 with 131 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 $26 billion in ETF and mutual fund assets.2
Tucker Hewes, Hewes Communications, Inc., 212-207-9451, email@example.com
Financial Professional contact:
ProShares, 866.776.5125, ProShares.com
Feb 27, 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 12/31/2011.
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).