VIX ETFs: Get Ready for UVXY Reverse Split

September 6th at 11:26am by John Spence

ProShares Ultra VIX Short-Term Futures ETF (NYSEArca: UVXY) will reverse split shares 1-for-10 after Thursday’s closing bell.

The overall value of shares held by an investor will not change. Investors will be left with fewer shares with each one at a higher price.

The reverse split will apply to shareholders of record as of the close of the markets on Sept. 6, ProShares said in press release. [VIX-Futures ETF to Reverse Split]

The fund will trade at its post-split price on Friday. The ticker will stay the same.

UVXY is a leveraged ETF designed to provide 200% of the daily performance of a basket of VIX futures contracts. It doesn’t replicate the CBOE Volatility Index spot price.

Volatility-linked ETFs dropped to new all-time lows Thursday and stocks rallied after the European Central Bank unveiled another bond-buying program. [Volatility ETFs Hit New All-Time Lows]

UVXY fell nearly 12% on Thursday. The ETF was down 93.2% year to date heading into Thursday’s session.

Earlier this year, UVXY conducted a 1-for-6 reverse split.

Despite their price declines, volatility-linked ETFs have seen significant inflows this year from investors seeking a hedge.

ProShares Ultra VIX Short-Term Futures ETF

The opinions and forecasts expressed herein are solely those of John Spence, 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.

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