SoFi announces reverse stock split for Select 500 ETF on Sept 20, 2024
- The reverse stock split will consolidate every five shares into one, effective after trading on October 1, 2024.
- Shareholders will not see a change in the overall value of their investments, despite a decrease in the number of shares.
- This move aims to enhance the marketability of the ETF and will not trigger any tax implications for shareholders.
On September 20, 2024, the Board of Trustees of Tidal ETF Trust approved a reverse stock split for the SoFi Select 500 ETF, which will take effect after the close of trading on October 1, 2024. This action will consolidate every five shares into one, resulting in an approximate 80% decrease in the total number of outstanding shares. The new CUSIP number for the ETF will also be issued following the split. The reverse stock split is designed to adjust the share price and improve the marketability of the ETF. While the number of shares held by investors will decrease, the overall value of their investments will remain unchanged. The split-adjusted shares will begin trading on October 2, 2024, allowing investors to continue their trading activities without interruption. Shareholders who hold fractional shares after the split will have those shares redeemed for cash at the fund's split-adjusted net asset value (NAV) on the effective date. Importantly, this reverse split will not be considered a taxable event for shareholders, and no transaction fees will be incurred for the redemption of fractional shares. Tidal Financial Group, which manages the ETF, aims to innovate within the ETF industry and enhance growth potential for its funds. As of September 1, 2024, Tidal managed 172 funds with over $19 billion in assets under management, reflecting its commitment to providing effective solutions for ETF issuers and investors alike.