ProShares Announces Reverse Share Splits of Nine ETFs


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Learn more: Reverse Split FAQs

PRESS RELEASE

Bethesda, MD, April 9, 2010 — ProShares announced today that it will execute reverse share splits on nine ProShares ETFs. The reverse splits will be effective for shareholders of record after the close of the markets on April 14, 2010. Seven of the funds will execute a 1-for-5 reverse split of shares, and two will execute a 1-for-10 reverse split of shares. The funds will trade at their post-split prices on April 15. The ticker symbols for the funds will not change, and all will continue to trade on NYSE Arca.

The reverse splits will reduce the number of shares outstanding for the funds, and result in a proportionate increase in the price per share of each fund. The reverse splits do not change the value of a shareholder's investment. For example, for the 1-for-5 reverse splits, every five pre-split shares held by a shareholder will result in the receipt of one post-split share, which will be priced five times higher than the pre-split shares.

Table 1
Split Ratios and CUSIPs for Funds Undergoing
Reverse Splits Effective April 15, 2010

Ticker Fund Split Ratio Old CUSIP New CUSIP
DUG UltraShort Oil & Gas 1:5 74347R586 74347X591
EEV UltraShort MCSI Emerging Markets 1:5 74347R354 74347X575
FXP UltraShort FTSE/Xinhua China 25 1:5 74347R321 74347X567
GLL UltraShort Gold 1:5 74347W700 74347W718
SMN UltraShort Basic Materials 1:5 74347R651 74347X617
SRS UltraShort Real Estate 1:5 74347R552 74347X583
URE Ultra Real Estate 1:5 74347R677 74347X625
UYG Ultra Financials 1:10 74347R743 74347X633
ZSL UltraShort Silver 1:10 74347W833 74347W726

 

Fractional Shares

For shareholders who hold quantities of shares that are not an exact multiple of the reverse split ratio (for example: a multiple of 5 for a 1-to-5 split), the reverse splits will result in the creation of fractional shares. Post-split fractional shares will be redeemed for cash. 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-5 reverse split:

Table 2
Hypothetical Example of 1-for-5 Reverse Split:

Period # of Shares Owned Hypothetical NAV Value of Shares
Pre-Split 100 $9.00 $900.00
Post-Split 20 $45.00 $900.00

 

About ProShares

ProShares is part of ProFunds Group, the leader in leveraged and inverse funds.1 ProShares introduced the first leveraged and inverse ETFs in the U.S. in 2006. Since 1997, ProFunds mutual funds have provided investors with access to sophisticated investment strategies.

Media Contact:

Tucker Hewes, Hewes Communications, Inc., (212) 207-9451, tucker@hewescomm.com

Financial Professionals:

For more information, please visit proshares.com or call 866-776-5125.

 

Most ProShares ETFs and many ProFunds employ leveraged investment techniques that magnify gains and losses, and result in greater volatility in value. Each Short or Ultra ProShares ETF and leveraged or inverse ProFund seeks a return that is a multiple or inverse multiple (e.g., -200%) of the return of an index or other benchmark (target) for a single day (before fees and expenses). Due to the compounding of daily returns, Short or Ultra ProShares’ and leveraged and inverse ProFunds’ returns over periods other than one day will likely differ in amount and possibly direction from the target return for the same period. Investors should monitor holdings consistent with their strategies, as frequently as daily. For more on correlation, leverage and other risks, please read the ProShares or ProFunds prospectus.

Apr 9, 2010
 

1 Source: Lipper, based on a worldwide analysis of all of the known providers of funds in these categories. The analysis covered ETFs, ETNs and mutual funds by the number of funds and assets (as of 6/30/2009).