Solar ETF Readies 1-for-15 Reverse Split After Long Decline

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A solar energy ETF that has shed about three-quarters of its value the past year is preparing a 1-for-15 reverse share split.

Market Vectors Solar Energy ETF (NYSEArca: KWT) will undergo a reverse split on July 2., according to manager Van Eck Global.

The price of a share will increase but the ETF’s shares outstanding will decline.

Reverse splits can lessen trading costs for ETF investors because they may help reduce bid-ask spreads.

The solar ETF was down 74% for the year ended June 28, according to Morningstar.

KWT is a relatively small ETF with $9.4 million in assets.

Guggenheim Solar ETF (NYSEArca: TAN) is another fund for the sector. Earlier this year, the ETF underwent a 1-for-10 reverse split. [ETF Chart of the Day: Solar Energy]

Market Vectors Solar Energy ETF

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