Market Vectors, the seventh-largest U.S. ETF issuer, said it will reverse split seven of its ETFs. Nearly all of the funds that will undergo reverse splits are either plays on commodities or emerging markets, two areas of the ETF universe that have been pummeled this year.
The effective date of the split will be at market open on July 1, 2013, according to a statement issued by the firm.
Three of the ETFs will be reverse split on a 1-for-3 basis. Those funds are the Market Vectors Global Alternative Energy ETF (NYSEArca: GEX), the Market Vectors Russia Small-Cap ETF (NYSE: RSXJ) and the Market Vectors Uranium+Nuclear Energy ETF (NYSEArca: NLR).
The other four Market Vectors ETFs that will be reverse split will do so on a 1-for-4 basis. That is comprised of the following funds: The Market Vectors Egypt ETF (NYSEArca: EGPT), the Market Vectors India Small-Cap Index ETF (NYSE: SCIF), the Market Vectors Junior Gold Miners ETF (NYSEArca: GDXJ) and the Market Vectors Rare Earth/Strategic Metals ETF (NYSEArca: REMX).
Reverse splits are not uncommon for some struggling ETFs, but it is leveraged funds that usually see the bulk of reverse split activity. Some of the most popular leveraged ETFs have already undergone reverse splits this year. [ProShares Announces Reverse Splits]