iPath to Reverse Split VXXOctober 01, 2012 at 08:30 AM EDT
Most VIX-focused exchange-traded products have tumbled over the course of the last several months, as surprisingly strong equity markets have led to a consistently depressed VIX. The relatively low levels of volatility, coupled with persistent and steep contango in futures markets, have pushed down most of the products in the Volatility ETFdb Category sharply on the year. Against this backdrop, iPath announced recently that it will be implementing a 1-for-4 reverse split on its volatility focused ETN VXX, which currently has over $1 billion in assets. VXX has lost about 75% of its value since the beginning of the year and has declined more than 95% over the past few years [see VXX Returns]. Barclays Bank has the right to cause a reverse split if the indicative value of the ETNs falls below $25 per share. After its recent freefall, shares of VXX are trading at less than $10; the 1-for-4 reverse split should push [...] Click here to read the original article on ETFdb.com. Related Posts: Time To Buy VIX ETNs? Six Noteworthy ETF Innovations Volatility ETPs: Where Are The Critics Now? August ETF Stats: Keeping The Winning Streak Alive (Just Barely) Volatility ETFs: The Real Safe Haven?
Most VIX-focused exchange-traded products have tumbled over the course of the last several months, as surprisingly strong equity markets have led to a consistently depressed VIX. The relatively low levels of volatility, coupled with persistent and steep contango in futures markets, have pushed down most of the products in the Volatility ETFdb Category sharply on the year. Against this backdrop, iPath announced recently that it will be implementing a 1-for-4 reverse split on its volatility focused ETN VXX, which currently has over $1 billion in assets. VXX has lost about 75% of its value since the beginning of the year and has declined more than 95% over the past few years [see VXX Returns]. Barclays Bank has the right to cause a reverse split if the indicative value of the ETNs falls below $25 per share. After its recent freefall, shares of VXX are trading at less than $10; the 1-for-4 reverse split should push [...]
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