Market Vectors ETF Trust announced today that its Board of Trustees has approved a 1-for-15 reverse split of the shares of
Market Vectors Solar Energy ETF (NYSE Arca: KWT)
The effective date of the split will be at market open on July 2, 2012. The Fund will continue to trade on the NYSE Arca under the ticker symbol “KWT,” but the current CUSIP number, 57060U811, will be discontinued and the Fund’s new CUSIP number will be 57061R783, effective July 2, 2012.
The Depository Trust Company (“DTC”), the registered owner of all Fund shares, has been notified of the reverse split and has been instructed to adjust each shareholder’s investment accordingly.
Shares of the Fund will be offered on a split-adjusted basis on July 2, 2012. The total market value of the shares outstanding will not be affected as a result of this reverse split, except with respect to the redemption of fractional shares, as discussed below.
Redemption of Fractional Shares and Tax Consequences for Each Reverse Split
For shareholders who hold quantities of shares that are not an exact multiple of the reverse split ratio (for example: a multiple of 15 for a 1-for-15 split), the reverse splits will result in the creation of fractional shares. Post-split fractional shares will be redeemed for cash and sent to the broker of record. This redemption may cause some shareholders to realize gains or losses, which could be a taxable event for those shareholders. Otherwise, the reverse split will not result in a taxable transaction for holders of the Fund.
About Market Vectors ETFs
Market Vectors exchange-traded products (ETPs) have been offered since 2006 and span many asset classes, including equities, fixed income (municipal and international bonds) and currency markets. The Market Vectors family currently totals $25.1 billion in assets under management, making it the fifth largest ETP family in the U.S. and eighth largest worldwide, as of March 31, 2012.