SS&C ALPS Advisors Announces Share Split of the ALPS Equal Sector Weight ETF (EQL)
Rhea-AI Summary
SS&C ALPS Advisors has announced a 3-for-1 share split for the ALPS Equal Sector Weight ETF (EQL), effective April 1, 2025. The split will be executed at market open, with EQL continuing to trade on the NYSE Arca under its current ticker symbol.
The split will increase the number of outstanding shares while proportionally reducing the share price, maintaining the total value of holdings. However, since fractional shares cannot trade on NYSE Arca, post-split fractional shares will be redeemed for cash, potentially triggering taxable events for affected shareholders.
While the split itself is not a taxable transaction, shareholders may incur brokerage charges. The fund maintains its passive management approach, tracking its underlying index's performance before fees and expenses.
Positive
- Share split improves stock accessibility through lower share price
- No direct taxable impact from the split itself
- Maintains same ticker and trading venue stability
Negative
- Forced cash redemption of fractional shares may trigger unwanted taxable events
- Potential brokerage charges for split-related transactions
The split of EQL will be effective at the market open on April 1, 2025. EQL will continue to trade on the NYSE Arca under the same ticker symbol.
Fund Name | Ticker | CUSIP | Pay Date | Ex-Date | ||
ALPS Equal Sector Weight ETF | EQL | 00162Q205 | 3:1 | 3/26/2025 | 3/31/2025 | 4/1/2025 |
The split will increase the number of EQL's shares outstanding and will proportionately lower the price of the shares for EQL, without affecting the total value of the shares outstanding, except with respect to the redemption of fractional shares, as discussed below.
As a result of the share split, a shareholder of EQL could potentially hold fractional shares. However, fractional shares cannot trade on NYSE Arca, EQL's primary listing exchange. Post-split fractional shares will be redeemed for cash and sent to the broker of record. This redemption may cause some shareholders to realize a gain or loss, which could be a taxable event for those shareholders. Otherwise, the split will not result in a taxable transaction for shareholders of EQL. Some brokerage charges may apply as a result of the split and are not charges imposed by ALPS Advisors, Inc.
Important Disclosures
An investor should consider the investment objectives, risks, charges and expenses carefully before investing. To obtain a prospectus containing this and other information, call 1-866-759-5679 or visit www.alpsfunds.com. Read the prospectus carefully before investing.
Shares of ETFs are bought and sold at market price (not NAV) and are not individually redeemable.
All investments are subject to risks, including the loss of money and the possible loss of the entire principal amount invested. Additional information regarding the risks of this investment is available in the prospectus.
The Fund's investment performance, because it is a fund of funds, depends on the investment performance of the Underlying Sector ETFs in which it invests.
An investment in the Fund is subject to the risks associated with the Underlying Sector ETFs that comprise the Underlying Index. The Fund will indirectly pay a proportional share of the asset-based fees of the Underlying Sector ETFs in which it invests.
The Fund is considered non-diversified and as a result may experience greater volatility than a diversified fund.
The Fund employs a "passive management" - or indexing - investment approach and seeks investment results that correspond (before fees and expenses) generally to the performance of its underlying index. Unlike many investment companies, the Fund is not "actively" managed. Therefore, it would not necessarily sell or buy a security unless that security is removed from or added to the underlying index, respectively.
ALPS Advisors, Inc., registered investment adviser with the SEC, is the investment adviser to the Fund. ALPS Advisors, Inc., ALPS Distributors, Inc. and ALPS Portfolio Solutions Distributor, Inc. are affiliated.
ALPS Portfolio Solutions Distributor, Inc. is the distributor for the Fund.
Not FDIC Insured • No Bank Guarantee • May Lose Value
About SS&C Technologies
SS&C is a global provider of services and software for the financial services and healthcare industries. Founded in 1986, SS&C is headquartered in
About SS&C ALPS Advisors
SS&C ALPS Advisors, a wholly-owned subsidiary of SS&C Technologies, is a leading provider of investment products for advisors and institutions. With over
* Christopher Murphy is a Registered Representative of ALPS Distributors, Inc.
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SOURCE ALPS Equal Sector Weight ETF
FAQ
When will the SSNC ALPS Equal Sector Weight ETF (EQL) 3-for-1 split take effect?
How will the EQL share split affect existing shareholders' investment value?
What happens to fractional shares after the SSNC EQL split?
Will the SSNC EQL share split result in a taxable event for shareholders?
