ProShares, a provider of alternative exchange-traded funds, has made a reverse share split on one of its ETFs, the ProShares Ultra VIX Short-Term Futures ETF (UVXY).

The reverse split will not change the value of a shareholder's investment. UVXY is the only ETF in the US offering magnified exposure to VIX futures.

UVXY will reverse split shares one-for-10. The reverse split will apply to shareholders of record as of the close of the markets on 6 September 2012. The fund will trade at its post-split price on 7 September 2012. The ticker symbol for the fund will not change. The fund will be issued a new CUSIP number of 74347W411.

The reverse split will increase the price per share of the fund with a proportionate decrease in the number of shares outstanding. For example, for a one-for-10 reverse split, every 10 pre-split shares held by a shareholder will result in the receipt of one post-split share, which will be priced 10 times higher than the net asset value of a pre-split share.

For shareholders who hold quantities of shares that are not an exact multiple of the reverse split ratio (for example, not a multiple of 10 for a one-to-10 reverse split), the reverse split will result in the creation of a fractional share. Post-reverse split fractional shares will be redeemed for cash and sent to your broker of record. This redemption may cause some shareholders to realise gains or losses, which could be a taxable event for those shareholders.