State Street Global Advisors (SSgA), the third-largest U.S. issuer of exchange traded funds, said Wednesday it plans to split two of its ETFs.
The SPDR S&P Insurance ETF (NYSEArca: KIE) will be split on a 3-for-1 basis. KIE is up about 11% year-to-date and the equal-weight insurance ETF currently trades near $92 per share.
“The forward share split will apply to shareholders of record as of market close on November 27, 2017 and are payable after market close on November 29, 2017. The shares will trade at their post-split price effective November 30, 2017,” according to a statement from SSgA.
With the markets look toward higher rates, the insurance industry can capitalize on wider margins. The industry has previously been suffering from spread compression on products like universal life and fixed annuities due to the stubbornly low rate environment. With greater investment income, insurers see conditions improve as rates rise.
SSgA also said it will reverse split the SPDR Bloomberg Barclays 1-3 Month T-Bill ETF (NYSEARCA: BIL). That ETF will be reverse split on a 1-for-2 basis. That reverse share split will be effective November 30, 2017, according to SSgA.
BIL is a short duration ETF, providing exposure to zero coupon Treasuries with maturities of one to three months.
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