Direxion, an exchange traded fund provider best known for its leveraged and inverse products, will execute a reverse split for six of its ETFs.
“The total market value of the shares outstanding will not be affected as a result of this reverse split, except with respect to the redemption of fractional shares,” according to a press release.
Five of the six ETFs will undergo a 1-for-5 reverse split:
- Direxion Daily Real Estate Bear 3x Shares (DRV)
- Direxion Daily Emerging Markets Bull 3x Shares (EDC)
- Direxion Daily Financial Bull 3x Shares (FAS)
- Direxion Daily Latin America Bull 3x Shares (LBJ)
- Direxion Daly 20+ Treasury Bear 3x Shares (TMV)
Additionally, one ETF will undergo a 1-for-3 reverse split:
- Direxion Daily Russia Bull 3x Shares (RUSL)
Shareholders of record on Nov. 9 will participate in the reverse splits, Direxion added. “The shares of each ETF will be offered on a split-adjusted basis the following day. [Leveraged ETFs See Inflows]
Max Chen contributed to this article.