Direxion, an exchange traded fund provider best known for its leveraged and inverse products, will execute a reverse split for six of its ETFs.
“The total market value of the shares outstanding will not be affected as a result of this reverse split, except with respect to the redemption of fractional shares,” according to a press release.
Five of the six ETFs will undergo a 1-for-5 reverse split:
- Direxion Daily Real Estate Bear 3x Shares (NYSEArca: DRV)
- Direxion Daily Emerging Markets Bull 3x Shares (NYSEArca: EDC)
- Direxion Daily Financial Bull 3x Shares (NYSEArca: FAS)
- Direxion Daily Latin America Bull 3x Shares (NYSEArca: LBJ)
- Direxion Daly 20+ Treasury Bear 3x Shares (NYSEArca: TMV)
Additionally, one ETF will undergo a 1-for-3 reverse split:
- Direxion Daily Russia Bull 3x Shares (NYSEArca: RUSL)
Shareholders of record on Nov. 9 will participate in the reverse splits, Direxion added. “The shares of each ETF will be offered on a split-adjusted basis the following day. [Leveraged ETFs See Inflows]
For more information on leveraged products, visit our leveraged ETFs category.
Max Chen contributed to this article.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.