ProShares, the largest issuer of inverse and leveraged exchange traded funds, announced after the close of U.S. markets Wednesday that it plans to reverse split 10 of its inverse and leveraged products.
The issuer will reverse split six of its ETFs on a 1-for-4 basis. Those ETFs are as follows: The ProShares UltraShort Telecommunications ETF (NYSEArca: TLL), UltraShort Financials ProShares (NYSEArca: SKF), ProShares VIX Mid-Term Futures ETF (NYSEArca: VIXM), ProShares UltraShort Technology (NYSEArca: REW), ProShares UltraShort Utilities (NYSEArca: SDP) and the ProShares Short QQQ (NYSEArca: PSQ).
The four ProShares ETFs that will be reverse split on a 1-for-5 basis are the ProShares UltraShort Semiconductors (NYSEArca: SSG), ProShares Ultrashort Nasdaq Biotechnology (NasdaqGM: BIS), ProShares UltraShort Russell Mid Cap Value ETF (NYSEArca: SJL) and the ProShares UltraShort Russell Mid Cap Growth ETF (NYSEArca: SDK).
All reverse splits will be effective at the market open on November 6, 2014, when the funds will begin trading at their post-split price. The ticker symbol for the funds will not change. All funds undergoing a reverse split will be issued a new CUSIP number, said Maryland-based ProShares in a statement.
ProShares reverse split 17 inverse and leveraged offerings in January. Reverse splits are not uncommon for some struggling ETFs, but it is leveraged funds that usually see the bulk of reverse split activity. Some well-known leveraged ETFs have undergone multiple reverse splits in their lifetimes. [ProShares Announces Reverse Splits for ETFs]