Share Splits of Four ETFs; Reverse Share Splits of 20 ETFs
Bethesda, MD, February 17, 2011 — ProShares, a premier provider of alternative exchange traded funds (ETFs), announced today share splits on four of its ETFs and reverse share splits on 20 of its ETFs. The splits and reverse splits will not change the value of a shareholder’s investment.
Splits
Three funds will split shares 2-for-1.
Ticker
Fund
Split Ratio
TQQQ ProShares UltraPro QQQ® 2:1
URTY ProShares UltraPro Russell2000 2:1
UMDD ProShares UltraPro MidCap400 2:1
One fund will split shares 3-for-1.
Ticker
Fund
Split Ratio
UPRO ProShares UltraPro S&P500® 3:1
All splits will apply to shareholders of record as of the close of the markets on February 22, 2011, payable after the close of the markets on February 24, 2011. The funds will trade at their post-split prices on February 25, 2011. The ticker symbols and CUSIP numbers for the funds will not change, and all will continue to trade on NYSE Arca.
The splits will decrease the price per share of each fund with a proportionate increase in the number of shares outstanding. For example, for the 2-for-1 splits, each pre-split share held by a shareholder will result in the receipt of 2 post-split shares, which will be priced at one half of the net asset value (“NAV”) of a pre-split share.
Illustration of a Split
The following table shows the effect of a hypothetical 2-for-1 split:
Period
# of Shares Owned Hypothetical NAV Value of Shares
Pre-Split
100 $ 100.00 $ 10,000.00
Post-Split
200 $ 50.00 $ 10,000.00
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Reverse Splits
Thirteen funds will reverse split shares 1-for-4.
Ticker
Fund
Split Ratio Old CUSIP New CUSIP
EPV ProShares UltraShort MSCI Europe 1:4 74347X807 74348A301
MZZ ProShares UltraShort MidCap400 1:4 74347R859 74347X211
REW ProShares UltraShort Technology 1:4 74347R578 74347X153
SDD ProShares UltraShort SmallCap600 1:4 74347R792 74348A400
SDK ProShares UltraShort Russell MidCap Growth 1:4 74347R446 74347X187
SIJ ProShares UltraShort Industrials 1:4 74347R594 74348A103
SJH ProShares UltraShort Russell2000 Value 1:4 74347R412 74348A509
SJL ProShares UltraShort Russell MidCap Value 1:4 74347R438 74347X161
SKF ProShares UltraShort Financials 1:4 74347R628 74347X146
SMK ProShares UltraShort MSCI Mexico Investable Market 1:4 74344X872 74347X179
TWM ProShares UltraShort Russell2000 1:4 74347R834 74348A202
UCO ProShares Ultra DJ-UBS Crude Oil* 1:4 74347W502 74347W650
ZSL ProShares UltraShort Silver* 1:4 74347W726 74347W643
Seven funds will reverse split shares 1-for-5.
Ticker
Fund
Split Ratio Old CUSIP New CUSIP
CMD ProShares UltraShort DJ-UBS Commodity* 1:5 74347W205 74347W676
JPX ProShares UltraShort MSCI Pacific ex-Japan 1:5 74347X609 74347X229
QID ProShares UltraShort QQQ® 1:5 74347R875 74347X237
SCO ProShares UltraShort DJ-UBS Crude Oil* 1:5 74347W809 74347W668
SKK ProShares UltraShort Russell2000 Growth 1:5 74347R420 74347X195
SSG ProShares UltraShort Semiconductors 1:5 74347R545 74347X245
TLL ProShares UltraShort Telecommunications 1:5 74347R255 74347X252
All reverse splits will apply to shareholders of record as of the close of the markets on February 24, 2011. The funds will trade at their post-split prices on February 25, 2011. The ticker symbols for the funds will not change, and all will continue to trade on NYSE Arca. All funds undergoing a reverse split will be issued a new CUSIP number.
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 the 1-for-4 reverse splits, 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 net asset value (“NAV”) of a pre-split share.
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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 4 for a 1-to-4 split), the reverse split will result in the creation of a fractional share. Post-reverse split fractional shares will be redeemed for cash and be 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.
Illustration of a Reverse Split
The following table shows the effect of a hypothetical 1-for-4 reverse split:
Period
# of Shares Owned Hypothetical NAV Value of Shares
Pre-Split
100 $ 10.00 $ 1,000.00
Post-Split
25 $ 40.00 $ 1,000.00
About ProShares
ProShares is a premier provider of alternative ETFs, with 115 funds and nearly $25 billion in assets. ProShares offers the largest family of geared (leveraged and inverse) ETFs.¹ ProShares is part of ProFunds Group, which was founded in 1997 and includes nearly $32 billion in mutual fund and ETF assets.²
