NEW YORK, March 11, 2022 (GLOBE NEWSWIRE) -- WisdomTree (NASDAQ: WETF), an exchange-traded product (“ETP”) sponsor and asset manager, today announced a reverse share split on the WisdomTree Floating Rate Treasury Fund (USFR). The reverse split decreases the number of shares outstanding and increases the price per share. The split will not change the total value of a shareholder’s investment, except with respect to the redemption of fractional shares as described below.
WisdomTree will execute the reverse split of the shares effective at the open of the market on March 24th, 2022. Please note that a CUSIP change will also become effective at the open of the market on March 24th, 2022.
Depending on the policies of the shareholder’s broker, shareholders who otherwise would be entitled to receive fractional shares may instead receive an amount of cash equivalent to the value of a fraction of one share to which such holder would otherwise be entitled. The redemption of fractional shares may cause some shareholders to realize a gain or a loss which could be a taxable event for those shareholders.
| Ticker | Fund Name | NAV per Share (as of 3/10/2022) | Split Ratio | Current CUSIP | New CUSIP | |
| USFR | WisdomTree Floating Rate Treasury Fund | $25.13 | 1:2 | 97717X628 | 97717Y527 | |
The following table illustrates the effect of a hypothetical 1-for-2 reverse share split:
| Period | Number of Shares Owned | Hypothetical Price per Share | Total Value of Shares | ||
| Pre-Split | 200 | $50.00 | $10,000 | ||
| Post-Split | 100 | $100.00 | $10,000 | ||
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.
Anita Rausch, WisdomTree Head of Capital Markets, said, “Floating rate treasuries are an extremely deep and liquid asset class. Given the growth and success of USFR, we saw an opportunity to maintain the one cent on-screen spread of the fund and reduce the spread by half on a basis point perspective by implementing a 1:2 reverse split. Furthermore, we believe the end result could be a more attractive share price point for increased institutional adoption, among other potential benefits.”
Investors should carefully consider the investment objective, risks, charges and expenses of the Fund before investing. To obtain a prospectus for the 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 possible loss of principal. Securities with floating rates can be less sensitive to interest rate changes than securities with fixed interest rates, but may decline in value. The issuance of floating rate notes by the U.S. Treasury is new and the amount of supply will be limited. Fixed income securities will normally decline in value as interest rates rise. The value of an investment in the Fund may change quickly and without warning in response to issuer or counterparty defaults and changes in the credit ratings of the Fund’s portfolio investments. Due to the investment strategy of this Fund it may make higher capital gain distributions than other ETFs. 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.
Anita Rausch is a registered representative of Foreside Fund Services, LLC.
Bid/Ask Spread: This is essentially the difference in price between the highest price that a buyer is willing to pay for an asset and the lowest price for which a seller is willing to sell it.
Basis Point: 1/100th of 1 percent.
WTPR-20220228-0161
About WisdomTree
WisdomTree Investments, Inc. through its subsidiaries in the U.S. and Europe (collectively, “WisdomTree”), is an ETF and ETP sponsor and asset manager headquartered in New York. WisdomTree offers products covering equity, commodity, fixed income, leveraged and inverse, currency, cryptocurrency and alternative strategies. WisdomTree currently has approximately $77.9 billion in assets under management globally. For more information, please visit www.wisdomtree.com or follow us on Twitter @WisdomTreeETFs.
WisdomTree® is the marketing name for WisdomTree Investments, Inc. and its subsidiaries worldwide.
Contact Information:
Media Relations
WisdomTree Investments, Inc.
Jessica Zaloom
+1.917.267.3735
jzaloom@wisdomtree.com / wisdomtree@fullyvested.com
