ProShares Announces ETF Share Splits


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Learn more: Splits and Reverse Splits FAQs

Share Splits of Six ETFs; Reverse Share Splits of 11 ETFs

Bethesda, MD, April 25, 2012—ProShares, the nation's fourth most successful exchange traded fund (ETF) company,1 announced 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
QLD ProShares Ultra QQQ 2:1
TQQQ ProShares UltraPro QQQ 2:1
UBT ProShares Ultra 20+ Year Treasury 2:1
UST ProShares Ultra 7-10 Year Treasury 2:1

 

Two ETFs will split shares 3-for-1.

Ticker Fund Split Ratio
UDOW ProShares UltraPro Dow30 3:1
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
DXD ProShares UltraShort Dow30 1:4 74347R867 74348A590
SQQQ ProShares UltraPro Short QQQ 1:4 74347X666 74348A665
BZQ ProShares UltraShort MSCI Brazil 1:4 74347X401 74348A673
SMDD ProShares UltraPro Short MidCap400 1:4 74347X682 74348A657
SCC ProShares UltraShort Consumer Services 1:4 74347R636 74348A616
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
SPXU ProShares UltraPro Short S&P500 1:5 74347X856 74348A632
ZSL ProShares UltraShort Silver 1:5 74347W643 74347W114
SRTY ProShares UltraPro Short Russell2000 1:5 74347X690 74348A640
BOIL ProShares Ultra DJ-UBS Natural Gas 1:5 74347W775 74347W122
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, tucker@hewescomm.com

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).