ProShares announced today share splits on seven of its ETFs. The
splits will not change the value of a shareholder’s investment.
Forward Splits
Two ETFs will forward split shares 2-for-1:
Ticker ProShares ETF
Split Ratio BZQ UltraShort MSCI Brazil Capped
2:1 ZSL UltraShort Silver
2:1
All splits will apply to shareholders of record as of the close
of the markets on November 10, 2015, payable after the close of the
markets on November 12, 2015. The funds will trade at their
post-split price on November 13, 2015. The ticker symbol and CUSIP
numbers for the funds will not change.
The forward splits will decrease the price per share of each
fund with a proportionate increase in the number of shares
outstanding. Every pre-split share will result in the receipt of
two post-split shares, which will be priced at half the net asset
value (“NAV”) of a pre-split share.
Illustration of a Forward 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
Four ETFs will reverse split shares 1-to-3, and one will reverse
split 1-to-5:
Ticker ProShares ETF
Split Ratio Old CUSIP
New CUSIP GDXX Ultra Gold Miners
1:3 74348A251 74347B482 GDJJ
Ultra Junior Miners 1:3
74348A277 74347B466 UOP Ultra Oil &
Gas Exploration & Production 1:3
74347B672 74347B458 UBR Ultra MSCI
Brazil Capped 1:3 74347X120
74347B490 UBIO UltraPro Nasdaq Biotechnology
1:5 74347B631 74347B474
All reverse splits will be effective at the market open on
November 13, 2015 when the funds will begin trading at their
post-split price. The ticker symbol for the funds will not change.
All funds undergoing a reverse split will be issued a new CUSIP
number, listed above.
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 a 1-for-3 reverse split, every three
pre-split shares will result in the receipt of one post-split
share, which will be priced three times higher than the NAV of a
pre-split share.
Illustration of a Reverse Split
The following table shows the effect of a hypothetical 1-for-3
reverse split:
Period # of Shares Owned
Hypothetical NAV Value of Shares
Pre-Split 300 $10.00
$3,000.00 Post-Split 100 $30.00
$3,000.00
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 3 for a 1-to-3 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.
About ProShares
ProShares helps investors to go beyond the limitations of
conventional investing and face today's market challenges.
ProShares helps investors build better portfolios by providing
access to a wide array of investment exposures delivered with the
liquidity, transparency and cost effectiveness of ETFs. Our wide
array of ETFs can help you reduce volatility, manage risk and
enhance returns.
Geared (Short or Ultra) ProShares ETFs seek returns that are
either 3x, 2x, -1x, -2x or -3x the return of an index or other
benchmark (target) for a single day, as measured from one
NAV calculation to the next. Due to the compounding of daily
returns, ProShares' returns over periods other than one day will
likely differ in amount and possibly direction from the target
return for the same period. These effects may be more pronounced in
funds with larger or inverse multiples and in funds with volatile
benchmarks. Investors should monitor their ProShares holdings
consistent with their strategies, as frequently as daily. For more
on correlation, leverage and other risks, please read the
prospectus.
Investing involves risk, including the possible loss of
principal. ProShares ETFs are generally non-diversified and
each entails certain risks, which may include risk associated with
the use of derivatives (swap agreements, futures contracts and
similar instruments), imperfect benchmark correlation, leverage and
market price variance, all of which can increase volatility and
decrease performance. Short positions lose value as security prices
increase. Leverage can increase market exposure and magnify
investment risk. Investments in smaller companies typically exhibit
higher volatility. Smaller company stocks also may trade at greater
spreads or lower trading volumes, and may be less liquid than
stocks of larger companies. International investments may also
involve risk from unfavorable fluctuations in currency values,
differences in generally accepted accounting principles, and from
economic or political instability. Securities focusing on a single
country may be subject to higher volatility. In emerging markets,
many risks are heightened, and lower trading volumes may occur.
GDXX and GDJJ are subject to risks faced by the gold and silver
mining industry, including risks related to changes in the price of
gold and silver. Gold and silver mining companies may also be
adversely affected by changing inflation expectations, the
availability of alternatives, disruptions in the supply chain,
rising production costs, rising regulatory compliance costs,
increased environmental regulations, and changes in industrial,
government and global consumer demand. Gold and silver mining
companies may dramatically outperform or underperform more
traditional equity investments. Technology companies may be subject
to severe competition and product obsolescence. Narrowly focused
investments typically exhibit higher volatility. There are
additional risks related to commodity investments due to large
institutional purchases or sales, and natural and technological
factors such as severe weather, unusual climate change, and
development and depletions of alternative resources. There are
additional risks due to debt levels in the underlying countries,
inflation and interest rates, investment activity, and global
political and economic concerns. The price of silver is volatile
and may be affected by large institutional purchases or sales,
indirect investment in gold and silver, industrial usage, and
political and economic concerns. Certain derivative instruments
will subject ZSL to counterparty risk and credit risk, which could
result in significant losses for the fund. Please see the summary
and full prospectuses for a more complete description of risks.
There is no guarantee any ProShares ETF will achieve its
investment objective.
Investing in ETFs involves a substantial risk of loss. ZSL is
not an investment company regulated under the Investment Company
Act of 1940 and is not afforded its protections. Please read the
prospectus carefully before investing. This ETF generates a K-1
tax form. This ETF is not suitable for all investors.
Carefully consider the investment objectives, risks, charges
and expenses of ProShares before investing. This and other
information can be found in their summary and full prospectuses.
Read them carefully before investing.
This information must be accompanied or preceded by a current
ProShares Trust II prospectus
(http://www.proshares.com/funds/trust_ii_prospectuses.html).
ProShares Trust II (issuer) has filed a registration statement
(including a prospectus) with the SEC for the offering to which
this communication relates. Before you invest, you should read the
prospectus in that registration statement and other documents the
issuer has filed with the SEC for more complete information about
the issuer and this offering. You may get these documents for free
by visiting EDGAR on the SEC website at sec.gov. Alternatively, the
issuer will arrange to send you the prospectus if you request it by
calling toll-free 866.776.5125 or visiting ProShares.com.
ProShares are distributed by SEI Investments Distribution Co.,
which is not affiliated with the funds' advisor or sponsor.
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version on businesswire.com: http://www.businesswire.com/news/home/20151027006658/en/
Media:Hewes Communications, Inc.Tucker Hewes,
212.207.9451tucker@hewescomm.comorInvestor:ProShares866.776.5125ProShares.com
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