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=rssPosted on Monday, October 27th, 2008 | In Exchange Traded Funds
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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Exchange Traded Funds, important by-product, index universe, RevenueShares Large Cap Fund, RevenueShares Mid Cap Fund, RevenueShares Small Cap Fund, USD
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