XLF restructuring

posted Sep 19, 2016, 9:24 AM by sms investing
ou may have noticed a drop in the price of XLF. However don't let this alarm you. It is currently going through a restructuring and you will receive a dividend from the fund for the difference.

ishares put out the following statement:
As of Sept. 16--the effective date for the changes to the Financial Select Sector Index--XLF's real estate holdings were transferred on an in-kind basis to XLRE, thus creating new shares of XLRE. In an effort to mitigate the cost of implementation, SSgA waived XLRE's fee until Sept. 16. This has resulted in the creation of $3 billion worth of new XLRE shares; these will be held by XLF until they are ultimately paid out to XLF shareholders as a special dividend on Sept. 22. According to SSgA, the estimated distribution for the special dividend will be 0.14 shares of XLRE or approximately $4.47 per share of XLF [based on Sept 9th prices]