In conjunction with a number of just-announced reverse splits for some price-challenged leveraged funds, ETF issuer Direxion will also perform traditional splits on several other ETFs that have seen huge price gains lately.
The split ratios range from 2-for-1 to 4-for-1, and affect mostly leveraged bull funds, although a couple of non-leveraged ETFs are affected as well. See the table below for details:
|Fund Name||Ticker||Forward Split Ratio||Approx. increase in total # of outstanding shares|
|Direxion Daily S&P 500® Bull 3X Shares||SPXL||4 for 1||300%|
|Direxion Daily Latin America Bull 3X Shares||LBJ||4 for 1||300%|
|Direxion Daily Small Cap Bull 3X Shares||TNA||2 for 1||100%|
|Direxion Daily Russia Bull 3X Shares||RUSL||2 for 1||100%|
|Direxion Daily S&P Oil & Gas Exp. & Prod. Bull 3X Shares||GUSH||2 for 1||100%|
|Direxion All Cap Insider Sentiment Shares||KNOW||2 for 1||100%|
|Direxion NASDAQ-100 Equal Weighted Index Shares||QQQE||2 for 1||100%|
All of the above splits will be completed when the market opens on May 1, 2017. Direxion commented via press release:
All share splits will apply to shareholders of record as of the close of NYSE Arca, Inc. (the “NYSE Arca”) on April 27, 2017 (the “Record Date”), payable after the close of the NYSE Arca on the payable date, April 28, 2017. Shares of the Funds will begin trading on the NYSE Arca on a split-adjusted basis on May 1, 2017 (the “Ex-Date”). On the Ex-Date, the opening market value of each Fund’s issued and outstanding shares, and thus a shareholder’s investment value, will not be affected by the share split. However, the per share net asset value (“NAV”) and opening market price on the Ex-Date will be approximately one-half or one-fourth for the Funds. The tables below illustrate the effect of a hypothetical two-for-one and four-for-one split on a shareholder’s investment.
The Direxion Daily S&P 500® Bull 3X Shares (NYSE:SPXL) was trading at $130.73 per share on Wednesday morning, up $4.15 (+3.28%). Year-to-date, SPXL has gained 21.33%, versus a 6.96% rise in the benchmark S&P 500 index during the same period.