6:1, 5:1 Stock Splits: Are You Invested in the Two Nvidia-Related Mega ETFs? They split in March 2024

Following a tremendous bull run that propelled it to become the third-biggest business in the world, many anticipated an announcement of a stock split from Nvidia, the largest AI firm in the world. It was also anticipated that Meta Platforms, previously Facebook, will separate. But none of the titans has released any such statements. However, were you aware that Nvidia and Meta would be splitting their stocks at a ratio of 6-for-1 and 5-for-1, respectively?

GraniteShares has declared that it would carry out forward share splits for two of its exchange-traded funds this week. GraniteShares 2x Long NVDA Daily ETF and GraniteShares 2x Long META Daily ETF are these two ETFs.

The single Meta Daily ETF will be divided into five new shares, whilst the NVDA Daily ETF will be divided into six smaller shares.

These splits will not have an impact on the outstanding shares’ total market value. The statement said that each Fund would execute a forward split of its issued and existing shares after the market closure on March 12, 2024 (the “Payable Date”).

Following these share splits, owners of each Fund will get six or five shares, respectively, for each share they now own in the relevant Fund, as shown in the above table. As a result, the issued and outstanding share count for each Fund will rise by the roughly proportion mentioned above.

The transactions won’t have an impact on the CUSIPs or tickers.

Furthermore, according to GraniteShares, all share splits will be applicable to shareholders who were in good standing on March 11, 2024 (the “Record Date”), at the end of the NASDAQ Stock Market (the “NASDAQ”). Payment will be made after the NASDAQ closes on the Payable Date. On March 13, 2024 (the “Ex-Date”), shares of the Funds will start trading on the NASDAQ on a split-adjusted basis.

The share split will not impact the opening market value of a shareholder’s investment on the Ex-Date, nor will it change the value of each Fund’s issued and outstanding shares. On the other hand, the opening market price and net asset value (“NAV”) per share for the Funds on the Ex-Date will be around one-fifth or one-sixth, respectively. According to the statement, the following table shows how a hypothetical six-for-one or five-for-one split might affect a shareholder’s investment.

With its headquarters located in New York City, GraniteShares is an independent ETF provider.

The Nasdaq-listed Meta shares saw a 2.5% increase in price on Friday, closing at $502.30, close to the day’s high of $504.2. The market value of Meta is around $1.28 trillion.

In the meanwhile, NVIDIA’s market capitalization of $2.056 trillion was up 3.5% to $818.54 per share. The price of a share of NVIDIA was close to its all-time high of $823.94.

A stock split may be used by a company to increase liquidity, decrease the value of the stock, lower its price, or just draw in new investors. There are several advantages to stock splits. Every corporation has a different ratio for splitting its shares. Based on historical performance, listed shares are in great demand during subdivision, in addition to being inexpensive and visually appealing.