State Street Global Advisors announces reverse splits of two ETFs
State Street Global Advisors, the asset management business of State Street Corporation (NYSE: STT), is to reverse split the SPDR S&P Oil & Gas Equipment & Services ETF (XES) and the SPDR S&P Oil & Gas Exploration & Production ETF (XOP).
The aim is to potentially reduce trading costs for investors. Shares of both funds will trade at their post-reverse split price effective as of 30 March, 2020.
“Our sector and industry SPDR ETFs are among the most heavily traded and widely used suite, allowing investors to gain targeted exposure while efficiently managing their total cost of ownership,” says Noel Archard, global head of SPDR product. “The reverse stock splits for XES and XOP are designed to increase the funds’ price per share and improve investors’ experience through our focus on the total cost of ownership, part of which is aided by maintaining a targeted price per share. With these changes, we look to help to reduce trading costs for investors seeking liquid access to these sub sectors of the oil industry.”
As a result of the reverse stock splits, shareholders of XES and XOP will typically receive cash in lieu of fractional shares. Certain shareholders, however, may have the potential to hold fractional shares; the treatment of those shares will be dependent upon each shareholder’s custodial relationship.