Direxion Investments, the second-largest issuer of inverse and leveraged exchange traded funds, announced that four of its leveraged ETFs will undergo reverse splits later this month.
Effective at the open U.S. markets on Nov. 18, the Direxion Daily 7-10 Treasury Bull 2x Shares (NYSEArca: SYTL) will be reverse split on a on 1-for-2 basis. SYTL, which debuted in late July, attempts to deliver 200% of the daily performance of the NYSE 7-10 Year Treasury Bond Index (AXSVTN). [Direxion Introduces New Leveraged ETFs]
Also effective on Nov. 18, the Direxion Daily Small Cap Bull 2x Shares (NYSEArca: SMLL) and the Direxion Daily Mid Cap Bull 2x Shares (NYSEArca: MDLL) will be split on 1-for-3 basis. MDLL and SMLL debuted on the same day as SYTL.
The Direxion Daily S&P 500 Bull 2X Shares (NYSEArca: SPUU), which debuted in late May, will also undergo a 1-for-3 reverse split. SPUU was formerly known as the Direxion Daily Large Cap Bull 2X Shares. That ETF did not track the S&P 500.
“As a result of this reverse split, every two or three shares of a Fund will be exchanged for one share as indicated in the table above. In addition, the per-share net asset value (“NAV”) and next day’s opening market price will be approximately two or three times higher for the Funds,” said Direxion in a statement.