FAQs

A forward split decreases the fund's price per share and proportionately increases the number of shares outstanding. Forward splits occur in ratios; for example, after a two-for-one forward split, a shareholder would own double the number of shares previously held. The value of shareholders' investments will not change after the split, however, because the post-split shares will be priced at half of the net asset value (NAV) of pre-split shares.

A reverse split increases the price per share and proportionately reduces the number of shares outstanding for a fund. As with a forward split, a reverse split does not change the value of investors' investments. For example, in a one-for-four reverse split, every four pre-split shares held by a shareholder will result in the receipt of one post-split share, which will be priced four times higher than the NAV of pre-split shares.

Hypothetical Fund ABC is undergoing a two-for-one forward split. This means that for every share of Fund ABC, an investor will receive two shares.

Example of a hypothetical two-for-one forward split:

Post-forward split, shareholders will own more shares but the price per share will be proportionately lower. As a result, the value of an investment will not change.

Hypothetical Fund ABC is undergoing a one-for-four reverse split. This means that for every four shares of Fund ABC, an investor will receive one share.

Example of a hypothetical one-for-four reverse split:

Post-reverse split, shareholders will own fewer shares but the price per share will be proportionately higher. As a result, the value of an investment will not change. If the reverse split results in a fractional share, the fractional share will automatically be redeemed for cash.

ProShares believes it is in our shareholders' best interests to execute forward splits and reverse splits from time to time to keep share prices within efficient trading ranges, and to seek to avoid low share prices. Forward splits help reset share prices to a range that helps maintain liquidity, especially if the price gets too expensive relative to other choices in the marketplace.

Reverse splits may help reduce bid-ask spreads. For funds with a lower share price, bid-ask spreads represent a higher percentage of the transaction price than for higher-priced funds, which can increase both costs and volatility—even when the spread is higher. ProShares believes a reverse split can adjust the share price to a more cost-effective level for the fund's shareholders, and therefore it is in our shareholders' best interest to do so.

Some brokerage firms may assess a corporate action processing fee. Shareholders should check with their brokerage firms to determine whether their accounts will be charged.

It is possible that taxable events could be created for some shareholders in funds undergoing a reverse split.

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. Fractional shares cannot trade on the exchanges, so post-reverse-split fractional shares will be automatically redeemed for cash and be sent to each shareholder's broker of record. This redemption may cause some shareholders to realize gains or losses, which could be a taxable event for those shareholders.

All transactions occurring on or after the effective date will be at post-split prices and share quantities.

The ticker symbol of a fund undergoing a forward split or reverse split does not change. However, a new CUSIP number will be issued for a fund undergoing a reverse split.

Yes. Both events will cancel limit and GTC orders. Investors should replace these orders and adjust them to the post-split price. Please note that reverse splits may also affect orders for options.