ProShares, the nation’s fourth most successful exchange traded fund
(ETF) company,1 announced today a reverse share split on one
of its ETFs, the ProShares Ultra VIX Short-Term Futures ETF (NYSE:
UVXY). The reverse split will not change the value of a shareholder’s
investment. UVXY is the only ETF in the United States offering magnified
exposure to VIX futures.
UVXY will reverse split 1-for-6. The reverse split will apply to
shareholders of record as of the close of the markets on March 7, 2012.
The fund will trade at its post-split price on March 8, 2012. The ticker
symbol for the fund will not change. The fund will be issued a new CUSIP
ProShares Ultra VIX Short-Term
The reverse split will increase the price per share of the fund with a
proportionate decrease in the number of shares outstanding. For a
1-for-6 reverse split, every six pre-split shares held by a shareholder
will result in the receipt of one post-split share, which will be priced
six times higher than the net asset value ("NAV") of a pre-split share.
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 6
for a 1-to-6 reverse split), the reverse split will result in the
creation of a fractional share. Post-reverse split fractional shares
will be redeemed for cash and 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-6 reverse
# of Shares Owned
Value of Shares
ProShares is the country’s fourth most successful exchange traded fund
(ETF) company,1 with 131 funds and nearly $23 billion in
assets.2 ProShares’ lineup includes the largest family of
geared (leveraged and inverse) ETFs.3 ProShare Advisors and
ProShare Capital Management are affiliated with ProFund Advisors, which
was founded in 1997. Together, they manage more than $26 billion in ETF
and mutual fund assets.2
1 Source: Financial Research Corporation, based on analysis of
organic net sales of U.S. exchange traded products (as of 6/30/2011).
Includes products launched by their current management company; excludes
products acquired through purchase or merger.
2 Assets as of 12/31/2011.
3 Source: Lipper, based on a worldwide analysis of all known
providers of funds in these categories. The analysis covered ETFs and
ETNs by the number of funds and assets (as of 6/30/2011).
This Ultra ProShares ETF seeks a return that is 2x the return of an
index or other benchmark (target) for a single day, as
measured from one NAV calculation to the next, before fees and expenses.
Due to the compounding
of daily returns, ProShares' returns over periods other than one day
will likely differ in amount and possibly direction from the target
return for the same period. These effects may be more pronounced in
funds with larger or inverse multiples and in funds with volatile
benchmarks. Investors should monitor their holdings consistent with
their strategies, as frequently as daily. For more on correlation,
leverage and other risks, please read the prospectus.
This fund is not an investment company regulated under the Investment
Company Act of 1940 and is not afforded its protections. Please read the prospectus
carefully before investing. Investing involves risk, including the
possible loss of principal. This ProShares ETF is non-diversified
and entails certain risks, including risk associated with the use of
derivatives (swap agreements, futures contracts and similar
instruments), imperfect benchmark correlation, leverage and market price
variance, all of which can increase volatility and decrease performance. There
is no guarantee any ProShares ETF will achieve its investment objective.
Investing in this ETF involves a substantial risk of loss. This
ETF invests in futures. VIX futures are among the most volatile futures
contracts. A fund's exposure to its index may subject that fund to
greater volatility than investments in traditional securities, which may
adversely affect an investor's investment in that fund. VIX futures
indexes are mean reverting; funds benchmarked to them should not be
expected to appreciate over extended periods. Due to defined time
periods and other features, VIX futures indexes and funds benchmarked to
them can be expected to perform differently than the VIX. This ETF is
not suitable for all investors. This fund generates a K-1 tax form.
ProShares Trust II (issuer) has filed a registration statement
(including a prospectus) with the SEC for the offering to which this
communication relates. Before you invest, you should read the prospectus
in that registration statement and other documents the issuer has filed
with the SEC for more complete information about the issuer and this
offering. You may get these documents for free by visiting EDGAR on the
SEC website at sec.gov.
Alternatively, the issuer will arrange to send you the prospectus if you
request it by calling toll-free 866.776.5125, or visit ProShares.com.
VIX® Short-Term Futures IndexTM" is a trademarks
of Standard & Poor's Financial Services LLC ("S&P") and have been
licensed for use by ProShares. "VIX®" is a trademark of
the Chicago Board Options Exchange, Incorporated ("CBOE") and CBOE has
agreed that S&P may use the "VIX®" trademark in the
names of the Indexes as licensed to ProShares. ProShares have not been
passed on by S&P or CBOE or their respective affiliates as to their
legality or suitability. ProShares are not sponsored, endorsed, sold or
promoted by S&P or CBOE or their respective affiliates, and S&P and CBOE
and their respective affiliates make no representation regarding the
advisability of investing in ProShares. THESE ENTITIES AND THEIR
AFFILIATES MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO
ProShares are distributed by SEI Investments Distribution Co., which is
not affiliated with the fund’s sponsor.
Media: Hewes Communications, Inc. Tucker Hewes,
212-207-9451 email@example.com or Financial
Professional: ProShares, 866-776-5125 proshares.com