Tag Archives: Direxion Daily Financial Bull 3X Shares

6 Direxion ETFs to See Reverse Splits

Direxion Shares announced it will execute reverse splits for six of its leveraged ETFs.

Five of the funds will experience a a 1-for-5 reverse split:
Direxion Daily Real Estate Bear 3x Shares (DRV)
Direxion Daily Emerging Markets Bull 3x Shares (EDC)
Direxion Daily Financial Bull 3x Shares (FAS)
Direxion Daily Latin America Bull 3x Shares (LBJ)
Direxion Daily 20+ Year Treasury Bear 3x Shares (TMV)

The Direxion Daily Russia Bull 3x Shares (RUSL) will experience a 1-for-3 reverse split

The splits will go into effect for shareholders of record after the close of the markets on Wednesday, November 9, 2011. The shares of each ETF will be offered on a split-adjusted basis on November 10. As is the case with regular stock splits, the total market value of the shares outstanding will not be affected, except with respect to the redemption of fractional shares.

Unlike mutual funds, fractional shares of ETFs can’t be bought or sold. Thus, shareholders may redeem the fractional shares for cash at each ETF’s split-adjusted net asset value (NAV) as of November 9. These redemptions could cause a shareholder to realize a gain or loss. Otherwise, the reverse split will not result in a taxable transaction for holders of ETF shares. No transaction fee will be imposed on shareholders for such redemption.

The reverse split will result in each ETF having outstanding one aggregation of less than 50,000 shares to make a creation unit, or an “odd lot unit.” Direxion says each ETF will provide one authorized participant with a one-time opportunity to redeem the respective odd lot unit at its split-adjusted NAV, or at the NAV on such date the authorized participant seeks to redeem the odd lot unit.

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9 ETFs Make Up 18% of Total U.S. Volume

Abel/Noser, an agency-only broker, released a market liquidity study for July saying ETFs dominated trading on the U.S. stock markets, with nine ETFs representing 18% of the total daily domestic volume, reports StreetInsider.com.

Those nine ETFs were: the SPDR (SPY), iShares Russell 2000 Index (IWM), PowerShares QQQ (QQQQ), iShares MSCI Emerging Markets Index (EEM), SPDR Gold Shares (GLD), UltraShort S&P500 ProShares (SDS), iShares MSCI EAFE Index (EFA), Financial Select Sector SPDR (XLF) and Direxion Daily Financial Bull 3X Shares (FAS).

According to the July ETF Report released by the National Stock Exchange today, the top five ETF providers in terms of volume, in descending order, are State Street Global Advisors, BlackRock, ProShares, Direxion and Invesco/PowerShares. Together, their share volume for the month of July was 27.6 billion shares, or 54% of the NYSE Group Volume in all stocks traded, 50.6 billion shares. This number doesn’t include Nasdaq volume.

In addition, Abel/Noser said six stocks accounted for more than 10% of the domestic principal traded. The six stocks: Apple, Bank of America, Citigroup, Microsoft, Exxon Mobil and Intel.

The top 105 stocks represented more than half of the day’s volume, says the study, while the top 975 names accounted for 90% of all the volume. The renaming 17,399 securities accounted for just 10% of the daily volume on the market. These numbers were little changed from June.