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ProShares Announces ETF Share Splits

ProShares, a premier provider of ETFs, announced today forward and reverse share splits on twelve of its ETFs. The splits will not change the total value of a shareholder’s investment.

Forward Splits

Two ETFs will forward split shares at the following split ratios:

 

Ticker

  

ProShares ETF

  

Split Ratio

 
 

RXL

  

ProShares Ultra Health Care

  

2:1

 
 

TQQQ

  

ProShares UltraPro QQQ

  

2:1

 

All forward splits will apply to shareholders of record as of market close on January 19, 2021, payable after market close on January 20, 2021. All forward splits will be effective prior to market open on January 21, 2021, when the funds will begin trading at their post-split price. The ticker symbols and CUSIP numbers for the funds will not change.

The forward splits will decrease the price per share of each fund with a proportionate increase in the number of shares outstanding. For example, for a two-for-one split, every pre-split share will result in the receipt of two post-split shares, which will be priced at one-half the net asset value (“NAV”) of a pre-split share.

Illustration of a Forward Split

The following table shows the effect of a hypothetical two-for-one forward split:

 

Period

# of Shares Owned

Hypothetical NAV

Value of Shares

 
 

Pre-Split

100

$120.00

$12,000.00

 
 

Post-Split

200

$60.00

$12,000.00

 

Reverse Splits

Ten ETFs will reverse split shares at the following split ratios:

 

Ticker

  

ProShares ETF

  

Split Ratio

Old CUSIP

New CUSIP

 
 

MZZ

  

ProShares UltraShort MidCap400

  

1:2

74348A343

74348A129

 
 

SDD

  

ProShares UltraShort SmallCap600

  

1:2

74348A327

74348A137

 
 

SDP

  

ProShares UltraShort Utilities

  

1:2

74347B722

74347G721

 
 

SIJ

  

ProShares UltraShort Industrials

  

1:2

74348A368

74348A111

 
 

SKF

  

ProShares UltraShort Financials

  

1:2

74347B748

74347G713

 
 

SMDD

  

ProShares UltraPro Short MidCap400

  

1:2

74347G879

74347G697

 
 

QID

  

ProShares UltraShort QQQ

  

1:4

74347B243

74347G739

 
 

TWM

  

ProShares UltraShort Russell2000

  

1:4

74348A319

74347G689

 
 

SPXU

  

ProShares UltraPro Short S&P500

  

1:5

74347B268

74347B110

 
 

SRTY

  

ProShares UltraPro Short Russell2000

  

1:5

74348A152

74347G747

 

All reverse splits will be effective prior to market open on January 21, 2021, when the funds will begin trading at their post-split price. The ticker symbols for the funds will not change. All funds undergoing a reverse split will be issued new CUSIP numbers, listed above.

The reverse splits will increase the price per share of each fund with a proportionate decrease in the number of shares outstanding. For example, for a one-for-four reverse split, every four pre-split shares will result in the receipt of one post-split share, which will be priced four times higher than the NAV of a pre-split share.

Illustration of a Reverse Split

The following table shows the effect of a hypothetical one-for-four reverse split:

 

Period

  

# of Shares Owned

Hypothetical NAV

Value of Shares

 
 

Pre-Split

  

1,000

$10.00

$10,000.00

 
 

Post-Split

  

250

$40.00

$10,000.00

 

Fractional Shares from Reverse Splits

For shareholders who hold quantities of shares that are not an exact multiple of the reverse split ratio (for example, not a multiple of four for a one-for-four reverse split), the reverse split will result in the creation of a fractional share. Post-reverse split fractional shares will be redeemed for cash and sent to your broker of record. This redemption may cause some shareholders to realize gains or losses, which could be a taxable event for those shareholders.

About ProShares

ProShares has been at the forefront of the ETF revolution since 2006. ProShares now offers one of the largest lineups of ETFs, with more than $45 billion in assets. The company is the leader in strategies such as dividend growth, interest rate hedged bond and geared (leveraged and inverse) ETF investing. ProShares continues to innovate with products that provide strategic and tactical opportunities for investors to manage risk and enhance returns.

January 6, 2021

ProShares is the leader in strategies such as dividend growth, interest rate hedged bond and geared (leveraged and inverse) ETF investing. Source: ProShares, 2021.

Geared (leveraged or short) ProShares ETFs seek returns that are a multiple of (e.g., 2x or -2x) the return of an index or other benchmark (target) for a single day, as measured from one NAV calculation to the next. Due to the compounding of daily returns, ProShares' returns over periods other than one day will likely differ in amount and possibly direction from the target return for the same period. These effects may be more pronounced in funds with larger or inverse multiples and in funds with volatile benchmarks. Investors should monitor their ProShares holdings consistent with their strategies, as frequently as daily. For more on correlation, leverage and other risks, please read the prospectus.

Investing involves risk, including the possible loss of principal. ProShares ETFs are generally non-diversified, and each entails certain risks, which may include risk associated with the use of derivatives (swap agreements, futures contracts and similar instruments), imperfect benchmark correlation, leverage and market price variance, all of which can increase volatility and decrease performance. Short positions lose value as security prices increase. Narrowly focused investments typically exhibit higher volatility. Investments in smaller companies typically exhibit higher volatility. Smaller company stocks also may trade at greater spreads or lower trading volumes and may be less liquid than stocks of larger companies. Please see summary and full prospectuses for a more complete description of risks. There is no guarantee any ProShares ETF will achieve its investment objective.

Carefully consider the investment objectives, risks, charges and expenses of ProShares before investing. This and other information can be found in their summary and full prospectuses. Read them carefully before investing.

ProShares are distributed by SEI Investments Distribution Co., which is not affiliated with the funds' advisor or sponsor.

Contacts:

Media Contact:
Tucker Hewes, Hewes Communications, Inc., 212.207.9451, tucker@hewescomm.com

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