WisdomTree Announces ETF Share Split
WisdomTree (NASDAQ: WETF) announced a 2-for-1 forward share split for its WisdomTree China ex-State-Owned Enterprises Fund (CXSE), effective for shareholders of record on October 14, 2020. This split will not alter the total investment value for shareholders. Post-split trading will commence on October 19, 2020, with the share price adjusted accordingly. The split is intended to improve liquidity and reduce bid/ask spreads, making the fund more accessible for investors. WisdomTree manages approximately $62.4 billion in assets globally.
- The 2-for-1 forward share split may enhance liquidity and decrease bid/ask spreads for the CXSE fund.
- Lower share price post-split allows for smaller minimum investments, potentially attracting more investors.
- None.
NEW YORK, Oct. 01, 2020 (GLOBE NEWSWIRE) -- WisdomTree (NASDAQ: WETF), an exchange-traded product (“ETP”) sponsor and asset manager, today announced a forward share split on the WisdomTree China ex-State-Owned Enterprises Fund (CXSE). Forward splits increase the number of shares outstanding and decrease the price per share. The split will not change the total value of a shareholder’s investment.
The stock split will apply to shareholders of record as of the close of the markets on October 14, 2020, payable after the close of the markets on October 16, 2020. Shares will trade at their post-split price on October 19, 2020.
| Ticker | Fund Name | NAV per Share (as of 9/29/2020) | Split Ratio | |
| CXSE | WisdomTree China ex-State-Owned Enterprises Fund | 2:1 | ||
The following table illustrates the effect of a hypothetical 2-for-1 forward share split:
| Period | Number of Shares Owned | Hypothetical Price per Share | Total Value of Shares | ||
| Pre-Split | 100 | ||||
| Post-Split | 200 | ||||
The WisdomTree Capital Markets team is continually evaluating the suite of WisdomTree funds for potential operational or other changes that seek to benefit investors, with particular focus on ETF trading.
Michael Barrer, WisdomTree Associate Director or Capital Markets, “As CXSE continues to gain traction and interest from investors, splitting the fund’s price 2:1 has the potential to result in tighter bid/ask spreads for the benefit of all investors. Furthermore, the lower price point of the fund allows for a smaller minimum investment, as well as further ease when rebalancing ETF portfolios, among other potential benefits.”
Investors should carefully consider the investment objectives, risks, charges and expenses of the Funds before investing. To obtain a prospectus for WisdomTree Funds containing this and other important information, please call 866.909.9473 or visit WisdomTree.com to view or download a prospectus. Investors should read the prospectus carefully before investing.
There are risks associated with investing, including the possible loss of principal. Foreign investing involves special risks, such as risk of loss from currency fluctuation or political or economic uncertainty. The Fund focuses its investments in China, including A-shares, which include the risk of the Stock Connect program, thereby increasing the impact of events and developments associated with the region which can adversely affect performance. Investments in emerging or offshore markets are generally less liquid and less efficient than investments in developed markets and are subject to additional risks, such as risks of adverse governmental regulation and intervention or political developments. The Fund’s exposure to certain sectors may increases its vulnerability to any single economic or regulatory development related to such sector. As this Fund can have a high concentration in some issuers, the Fund can be adversely impacted by changes affecting those issuers. Please read the Fund’s prospectus for specific details regarding the Fund’s risk profile.
WisdomTree Funds are distributed by Foreside Fund Services, LLC, in the U.S. only.
WTPR-20200925-0085
About WisdomTree
WisdomTree Investments, Inc., through its subsidiaries in the U.S. and Europe (collectively, “WisdomTree”), is an exchange-traded fund (“ETF”) and exchange-traded product (“ETP”) sponsor and asset manager headquartered in New York. WisdomTree offers products covering equities, fixed income, currencies, commodities and alternative strategies. WisdomTree currently has approximately
WisdomTree® is the marketing name for WisdomTree Investments, Inc. and its subsidiaries worldwide.
Contact Information:
Media Relations
WisdomTree Investments, Inc.
Jessica Zaloom / Amie Lauder
+1.917.267.3735 / +1.416.459.6835
jzaloom@wisdomtree.com / alauder@wisdomtree.com
FAQ
What is the significance of WisdomTree's forward share split for WETF?
When will the WisdomTree China ex-State-Owned Enterprises Fund split occur?
How will the forward share split impact the investment value for shareholders of WETF?
What is the current NAV per share of the CXSE fund before the split?
