ETF Trends
ETF Trends
  • State Street to reverse split two of its municipal bond ETFs
  • TFI and SHM will be reserve split 1-for-2 on March 15
  • As a result of the reverse splits, shareholders of SHM and TFI could potentially hold fractional shares

State Street Global Advisors (SSgA), the third-largest U.S. issuer of exchange traded funds, said it will reverse split two of its municipal bond ETFs.

In reverse splits that take effect on March 15, the SPDR Nuveen Barclays Municipal Bond ETF (NYSEArca: TFI) and the SPDR Nuveen Barclays Short Term Municipal Bond ETF (NYSE: SHM) will be reverse split 1-for-2.

“As a result of the reverse splits, shareholders of SHM and TFI could potentially hold fractional shares. In lieu of these fractional shares, shareholders may receive cash following the split,” according to a statement issued by SSgA.

Nuveen partners with State Street’s (NYSE: STT) State Street Global Advisors unit on at least seven fixed income ETFs, including the SPDR Nuveen S&P High Yield Municipal Bond ETF (NYSEArca: HYMB), SPDR Nuveen Barclays Build America Bond ETF (NYSEArca: BABS) and the SPDR Nuveen Barclays Municipal Bond ETF.

SPDR Nuveen Barclays Municipal Bond ETF