Vanguard is planning 2-for-1 share splits for three of its most popular ETFs.
The Vanguard Total Stock Market ETF (VTI), Vanguard Emerging Markets ETF (VWO) and the Vanguard Extended Market ETF (VXF) will also see their share prices split in half around mid-June.
The share prices for each one of these ETFs are all in the $100 to $140 per share range.
When the split takes place, investors in the funds will receive an extra share for each one they already own.
The share split for these three Vanguard ETFs is expected to take place on June 17 to shareholders that owned the funds as of June 13. ETFs will trade at the new split-adjusted prices beginning on June 18.
During the late 1990s, stock share splits were the rage as technology shares were surging. Generally, share splits happen when a stock’s price reaches three-digit levels.
ETF share splits are less common, but occur from time to time. One of the purposes of share splits is to accommodate smaller investors by making shares more affordable.
Ron DeLegge is the San Diego-based editor of www.etfguide.com.