Direxion to Reverse Split 7 ETFs, Forward Split Two
July 25th, 2013 at 8:20am by Tom Lydon
Direxion, one of the largest issuers of inverse and leveraged ETFs, announced Wednesday that two of the firm’s high-flying triple-leveraged funds will be split while seven of its ETFs will undergo reverse splits.
In March, Direxion announced forward and reverse splits for 16 of its ETFs. The two ETFs that will be forward split are the Direxion Daily Gold Miners Bear 3X Shares (NYSEArca: DUST), and the Direxion Daily Healthcare Bull 3X Shares (NYSEArca: CURE). CURE and DUST will be both be split 2-for-1 with the split taking effect on August 20. DUST closed just below $77 on Wednesday while CURE closed around $106.35.
The Direxion Daily India Bull 3X Shares (NYSEArca: INDL), Direxion Daily Real Estate Bear 3X Shares (NYSEArca: DRV), Direxion Daily Semiconductor Bear 3X Shares (NYSEArca: SOXS), Direxion Daily Developed Markets Bear 3X Shares (NYSEArca: DPK) and Direxion Daily Natural Gas Related Bear 3X Shares (NYSEArca: GASX) will be reverse split on 1-for-4 basis, according to a statement by Direxion.
The Direxion Daily S&P 500 Bear 3X Shares (NYSEArca: SPXS) will be split 1-for-5 while the Direxion Daily Gold Miners Bull 3X Shares (NYSEArca; NUGT) will undergo a 1-for-10 reverse split. All of the reverse splits take effect on August 20.
This will be the second reverse split for NUGT this year, although even with Wednesday’s 14.4% slide, the ETF has soared about 40% in the past month. [Technical Outlook Improving for Gold Miners ETF]
Direxion Daily Gold Miners Bull 3X Shares
ETF Trends editorial team contributed to this post. Tom Lydon’s clients own shares of NUGT.
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