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Barclays Announces A Bundle Of ETF Splits
July 15, 2008
SAN DIEGO - (ETFguide.com) - Barclays Global announced a split on 16 of their 190 exchange traded portfolios. While ETF splits are quite uncommon, BGI is not the first to authorize a split. Vanguard seems to have gotten the ball rolling with their
June 4, 2008 announcement.
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The split was authorized by BGI for shareholders of record as of the close of business on
July 21, 2008. Fund shares will begin trading on a split-adjusted basis on July 24th.
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Name
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Ticker
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Split Ratio
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iShares S&P Latin America 40 Index Fund
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ILF
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5 for 1
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iShares FTSE/Xinhua China 25 Index Fund
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FXI
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3 for 1
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iShares MSCI Emerging Markets Index Fund
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EEM
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3 for 1
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iShares MSCI Pacific ex-Japan Index Fund
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EPP
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3 for 1
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iShares Russell Midcap Value Index Fund
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IWS
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3 for 1
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iShares S&P Global Energy Sector Index Fund
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IXC
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3 for 1
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iShares S&P North American Natural Resources Sector Index Fund
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IGE
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3 for 1
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iShares Dow Jones Energy Sector Fund
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IYE
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3 for 1
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iShares S&P SmallCap 600 Growth Index Fund
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IJT
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2 for 1
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iShares S&P 1500 Index Fund
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ISI
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2 for 1
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iShares MSCI South Africa Fund
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EZA
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2 for 1
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iShares S&P/TOPIX 150 Index Fund
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ITF
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2 for 1
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iShares MSCI EMU Index Fund
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EZU
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2 for 1
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iShares Russell Midcap Growth Index Fund
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IWP
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2 for 1
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iShares S&P Europe 350 Index Fund
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IEV
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2 for 1
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iShares Silver Trust
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SLV
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10 for 1
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What is the benefit of a split?
A split has the effect of lowering the share price by increasing the number of shares outstanding thereby making the shares more affordable. The total value of shares outstanding is not affected by a split. For example, a 2-for-1 split will halve the share price of an ETF and double the number of outstanding shares.
In the case of the iShares Silver Trust, the underlying Shares are expected to reflect, at any given time, the price of the silver owned by the Trust, less the Trust’s expenses and liabilities. While SLV is currently trading at $189.35, the price of silver is $19.08. The 10 for 1 split will establish a closer correlation between SLV and the price of Silver, per ounce.
Hypothetical 10 for 1 split:
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Period
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Number of Shares Owned
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Hypothetical Market Price/Share
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Total Value
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Pre-split
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100
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$190
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$19,000
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Post split
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1,000
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$19
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$19,000
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