- Moving to better compete with the S&P 500 ETF giants - State Street's (STT) SPDR S&P 500 ETF Trust (SPY) and iShares' (BLK) S&P 500 Index (IVV) - Vanguard sets a 1:2 reverse split of its S&P 500 ETF (VOO), effective October 24.
- This will double VOO's price ($77.36 currently) to something more in line with the price of SPY and IVV; effectively lowering the all-in cost for investors without costing Vanguard anything (a bid-ask spread of $0.01 on a $150 stock is less on a percentage basis than on a $75 stock).
- The SPY currently has about $144B in AUM, and IVV about $45B. Vanguard's VOO has about $11B.
- Source: Press release.
- Other S&P 500 ETFs: RWL, SFLA, SSO, UPRO, SDS, SPXU, SH, EPS, RSP, BXUB, BXUC, BXDB.
Vanguard takes aim at SPY and IVV with reverse split of VOO
From other sites
at Financial Times (Apr 12, 2015)
at Zacks.com (Apr 7, 2015)
at MarketRealist.com (Mar 28, 2015)
at Zacks.com (Mar 18, 2015)
State Street Corp.'s Non-Cumulative Perpetual Preferred Stock, Series C Shares Cross 5.5% Yield Markat Nasdaq.com (Mar 6, 2015)
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