A Case for More ETF Splits

Of the 20 highest-priced ETFs, 14 are broad market funds such as the SPDR S&P 500 ETF (NYSEArca: SPY), iShares Core S&P 500 ETF (NYSEArca: IVV) and the Vanguard 500 Index (NYSEArca: VOO). Five are healthcare ETFs with the iShares Nasdaq Biotechnology ETF (NasdaqGS: IBB) sporting the highest price tag of any ETF. IBB, the largest biotech ETF by assets, closed just below $391 on Wednesday after flirting with $400. [Biotech ETF Run not Over Yet, Says Analyst]

Forward splits are not uncommon among ETF issuers, but the bulk of those transactions come courtesy of sponsors of inverse and leveraged ETFs.

For example, in May, ProShares, the largest issuer of geared ETFs, announced forward splits for 12 of its 12 ETFs. In late April, ProShares rival Direxion said it is splitting 19 of its geared funds. The splits include eight reverse splits and 11 traditional, or forward splits. [Direxion to Split 19 ETFs]

ETF Trends editorial team contributed to this post.