WisdomTree Announces ETF Reverse Share Split
March 11 2022 - 9:00AM
WisdomTree (NASDAQ: WETF), an exchange-traded product (“ETP”)
sponsor and asset manager, today announced a reverse share split on
the WisdomTree Floating Rate Treasury Fund (USFR). The reverse
split decreases the number of shares outstanding and increases the
price per share. The split will not change the total value of a
shareholder’s investment, except with respect to the redemption of
fractional shares as described below.
WisdomTree will execute the reverse split of the shares
effective at the open of the market on March 24th, 2022. Please
note that a CUSIP change will also become effective at the open of
the market on March 24th, 2022.
Depending on the policies of the shareholder’s broker,
shareholders who otherwise would be entitled to receive fractional
shares may instead receive an amount of cash equivalent to the
value of a fraction of one share to which such holder would
otherwise be entitled. The redemption of fractional shares may
cause some shareholders to realize a gain or a loss which could be
a taxable event for those shareholders.
Ticker |
Fund Name |
NAV per Share(as of
3/10/2022) |
Split Ratio |
Current CUSIP |
New CUSIP |
USFR |
WisdomTree Floating Rate Treasury Fund |
$25.13 |
1:2 |
97717X628 |
97717Y527 |
The following table illustrates the effect of a hypothetical
1-for-2 reverse share split:
Period |
Number of Shares Owned |
Hypothetical Price per Share |
Total Value of Shares |
|
|
|
|
Pre-Split |
200 |
$50.00 |
$10,000 |
Post-Split |
100 |
$100.00 |
$10,000 |
The WisdomTree Capital Markets team is continually evaluating
the suite of WisdomTree funds for potential operational or other
changes that seek to benefit investors, with particular focus on
ETF trading.
Anita Rausch, WisdomTree Head of Capital Markets, said,
“Floating rate treasuries are an extremely deep and liquid asset
class. Given the growth and success of USFR, we saw an opportunity
to maintain the one cent on-screen spread of the fund and reduce
the spread by half on a basis point perspective by implementing a
1:2 reverse split. Furthermore, we believe the end result could be
a more attractive share price point for increased institutional
adoption, among other potential benefits.”
Investors should carefully consider the investment
objective, risks, charges and expenses of the Fund before
investing. To obtain a prospectus for the Funds containing this and
other important information, please call 866.909.9473 or visit
WisdomTree.com to view or download a prospectus. Investors should
read the prospectus carefully before investing.
There are risks associated with investing, including possible
loss of principal. Securities with floating rates can be less
sensitive to interest rate changes than securities with fixed
interest rates, but may decline in value. The issuance of floating
rate notes by the U.S. Treasury is new and the amount of supply
will be limited. Fixed income securities will normally decline in
value as interest rates rise. The value of an investment in the
Fund may change quickly and without warning in response to issuer
or counterparty defaults and changes in the credit ratings of the
Fund’s portfolio investments. Due to the investment strategy of
this Fund it may make higher capital gain distributions than other
ETFs. Please read the Fund’s prospectus for specific details
regarding the Fund’s risk profile.
WisdomTree Funds are distributed by Foreside Fund Services, LLC,
in the U.S. only.Anita Rausch is a registered representative of
Foreside Fund Services, LLC.
Bid/Ask Spread: This is essentially the difference in price
between the highest price that a buyer is willing to pay for an
asset and the lowest price for which a seller is willing to sell
it.
Basis Point: 1/100th of 1 percent.
WTPR-20220228-0161
About WisdomTree
WisdomTree Investments, Inc. through its subsidiaries in the
U.S. and Europe (collectively, “WisdomTree”), is an ETF and ETP
sponsor and asset manager headquartered in New York. WisdomTree
offers products covering equity, commodity, fixed income, leveraged
and inverse, currency, cryptocurrency and alternative strategies.
WisdomTree currently has approximately $77.9 billion in assets
under management globally. For more information, please visit
www.wisdomtree.com or follow us on Twitter @WisdomTreeETFs.
WisdomTree® is the marketing name for WisdomTree Investments,
Inc. and its subsidiaries worldwide.
Contact Information:Media RelationsWisdomTree
Investments, Inc. Jessica Zaloom
+1.917.267.3735jzaloom@wisdomtree.com /
wisdomtree@fullyvested.com
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