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RevenueShares Splits ETFs To Cut Prices, Up Volume

Source: http://www.indexuniverse.com/sections/newsinfocus/4743-revenueshares-splits-etfs-to-cut-.html?Itemid=3&utm_source=straightstocks.com&utm_medium=sidebar&utm_campaign=rss
Posted on Monday, October 27th, 2008 | In Exchange Traded Funds
Contributed by: IndexUniverse Staff (http://indexuniverse.com) -

The move will lower the share price on each ETF by half, and double the number of outstanding shares.

 

RevenueShares Investor Services will complete a 2-for-1 stock split for three of its exchange-traded funds on Nov. 3, a move being made by the small ETF company to drop per-share prices.

Of course, an important by-product of such a move by RevenueShares would be an increase in the average daily trading volumes in the funds.

The ETFs are: the RevenueShares Large Cap Fund (NYSEArca: RWL); RevenueShares Mid Cap Fund (NYSEArca: RWK), and RevenueShares Small Cap Fund (NYSEArca: RWJ).

The move will lower the share price on each ETF by half, and double the number of outstanding shares.

After the close of trading on Nov. 5, each ETF shareholder will receive the additional shares on the new split-adjusted basis, for trading on Nov. 6. However, the additional shares will actually be distributed to shareholder accounts on Nov. 11.

The opening prices and daily volumes of the ETFs, as of this morning, according to Morningstar data, were:

 

ETF

Open Price

Avg. Daily Volume

RWL

$30.71

9,000

RWK

$26.40

9,000

RWJ

$36.14

4,000

 

RevenueShares’ ETFs have struggled to gain the market’s attention, while trumpeting their revenue-based approach to equities weightings. The funds have a total of $39 million in assets since launching last February, says Morningstar ($24 million in RWL; $8 million in RWK; and $7 million in RWJ).

 

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About IndexUniverse Staff (http://indexuniverse.com)
IndexUniverse encompasses the world of indexing and beyond. Our website and related subsites cover product and market developments related to index funds, exchange-traded funds (ETFs), index derivatives (futures / options / swaps), and the sophisticated investment strategies which use these financial tools. Our goal is to provide the industry's best news, columns, research, and features about the dynamic field of index-based investing and trading. Industry professionals, individual investors, business/finance students and academic researchers will find various features targeting their interests and needs. We also provide valuable tools and data to assess markets and investment products, and specialized discussion boards for our registered members to exchange cutting-edge ideas and market views. We aim to be educational, thought-provoking, and most importantly, rigorously independent in our perspective.

The development of IndexUniverse was a global effort, originally led by Steven Schoenfeld and Jim Wiandt, supported by John Spence and a diverse team in the U.S., Europe and Latin America, and enhanced by editorial contributors from around the world. The site is now managed solely by Jim Wiandt and the global Index Publications LLC team. The site was originally started by Steven as a data and information complement to his book, Active Index Investing, published by Wiley Finance in July 2004. As he recognized the need and potential for such a resource, in August 2003, Steven partnered with Jim, who as editor of The Journal of Indexes similarly recognized the industry's need for timely, useful and independent information on products and markets.

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