ProShares, the largest issuer of inverse and leveraged exchange traded funds, will reverse split the ProShares Short S&P500 (NYSEArca: SH).
SH’s “reverse split will be effective on June 24, 2016, when the fund will begin trading at its post-split price. The ticker symbol for the fund will not change,” according to a statement issued by Maryland-based ProShares.
SH will be reverse split on a 1-for-2 basis. The ETF is not leveraged and its aim is to replicate the daily inverse performance of the S&P 500. So if the benchmark U.S. equity index falls 1%, SH should rise by the same amount.
“SH is the largest geared fund in the United States with approximately $3 billion in assets.2 The fund has an average daily volume of about 7 million shares,” according to ProShares.
Last week, Direxion, a direct competitor to ProShares, introduced a rival to SH, the Direxion Daily S&P 500 Bear 1x Shares ETF (NYSEArca: SPDN).