Market Vectors, the exchange-traded fund firm owned by Van Eck Global, has set reverse share splits effective next month on seven of its ETFs, including the market’s only fund focused on Egypt, to ensure that bid/ask spreads on the security don’t grow too large as a percentage of its declining share price.
The splits will be effective on July 1, Market Vectors said in a press release June 21, and the company noted that while none of the fund tickers will change, their CUSIPS will.
Of the seven reverse splits, three are 1-for-3 and the other four are 1-for-4. The splits and each ETF’s new CUSIP are as follows:
- Market Vectors Global Alternative Energy ETF (GEX), 1-for-3, new CUSIP 57061R593
- Market Vectors Russia Small‐Cap ETF (RSXJ), 1-for-3, new CUSIP:57061R585
- Market Vectors Uranium+Nuclear Energy ETF (NLR), 1-for-3, new CUSIP:57061R577
- Market Vectors Egypt Index ETF (EGPT), 1-for-4, new CUSIP:57061R569
- Market Vectors India Small‐Cap Index ETF (SCIF), 1-for-4, new CUSIP:57061R551
- Market Vectors Junior Gold Miners ETF (GDXJ), 1-for-4, new CUSIP:57061R544
- Market Vectors Rare Earth/Strategic Metals ETF (REMX), 1-for-4, new CUSIP:57061R536
The total market value of the shares outstanding won’t be affected by the reverse splits, though fractional shares that result from the splits will be redeemed for cash, the company said.
Such cash redemptions could result in tax consequences for some shareholders, though the split is otherwise not a taxable event, Market Vectors said.
Market Vectors is the seventh-biggest U.S. ETF sponsor, with 56 ETFs that together have more than $21.5 billion in assets under management, according to data compiled by IndexUniverse.
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