VelocityShares Daily 2x VIX ST ETN (TVIX)

[august1991]

TVIX Reverse Split—August 2013
Thursday, August 29th, 2013 | Vance Harwood

TVIX10-1

TVIX’s issuer, Credit Suisse announced that they will reverse split TVIX 10:1 effective 30-August-2013.

Lacking major volatility spikes the 2X leveraged short term volatility ETPs like VelocityShares’ TVIX and ProShares’ UVXY need to reverse split about every year to keep their products in a reasonable trading range. Lacking market panics they tend to be ravaged by contango at the rate of around 90% per year. In the past Credit Suisse allowed TVIX to drop below $1, but this time they didn’t wait as long, and thanks to a recent volatility bump they have a chance to trade above $20 for the first time since January 2012.

Event Dates Inception / Price when reverse split was announced Months since inception /last split
Inception 30-Nov-2013 112.35
1st Reverse Split 21-Dec-2012 0.9 24
2nd Reverse Split 30-Aug-2013 1.68 9

If you hold shares of TVIX there isn’t anything to worry about. The value of your investment stays the same through the reverse split process. You just have 10X fewer shares that are worth 10X more each. If your share holdings are not a multiple of ten, say 215 shares, you will get 21 reverse adjusted shares and a cash payout for the 5 remaining pre-split shares.
If you are short TVIX, same story, no material impact.