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
