Another Solar ETF to Reverse Split (KWT, TAN)
Market Vectors ETF trust announced late Friday that it has approved a 1-for-15 reverse split for the Market Vectors Solar Energy ETF (NYSE: KWT). The reverse split will take effect at the open of U.S. markets on July 2. The ETF's ticker will remain the same, but the fund's CUSIP number will change to 57061R783 from 57060U811.
KWT, which has $9.9 million in assets under management as of June 16, becomes the second solar ETF to engineer a reverse split this year. In February, the Guggenheim Solar ETF (NYSE: TAN) underwent a 1-for-10 reverse split.
Benzinga noted in March when KWT was trading around $4, it was a prime candidate for a reverse split. The fund closed at $2.63 on Friday. KWT is down almost 29% year-to-date compared to a 25% loss for the larger TAN. TAN has almost $50.3 million in assets under management.
KWT's top-10 holdings include Trina Solar (NYSE: TSL), First Solar (Nasdaq: FSLR) and Yingli Green Energy (NYSE: YGE). Combined, U.S. and Chinese firms account for nearly two-thirds of KWT country weight.
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