WisdomTree proposes principal amount reduction for S&P 500 3X short ETPs

Published 22/08/2025, 11:58
© Pavlo Gonchar / SOPA Images/Sipa via Reuters Connect

DUBLIN - WisdomTree Multi Asset Issuer PLC announced today it will hold a meeting of securityholders on September 17, 2025, to vote on reducing the principal amount of its S&P 500 3X Daily Short Securities from $2.6 to $0.26.

The company is proposing the amendment after the price of the affected securities fell below 500 percent of their current principal amount on July 2, 2025, triggering what the company refers to as a "Threshold Event."

According to the press release statement, if securityholders reject the proposal and the price subsequently falls below 200 percent of the principal amount after 60 days from the Threshold Event Date, a compulsory redemption event would be triggered, forcing WisdomTree to redeem all affected securities.

The Dublin-based issuer emphasized that the principal amount reduction would not affect the securities’ price, which is calculated based on the underlying index rather than the principal amount. The company also stated the change would not dilute holdings, reduce their value, impact trading ability, or affect redemption amounts.

The meeting will take place at the offices of Apex IFS Limited in Dublin at 11 a.m. local time on September 17. Holders of the affected securities, which trade under LSE code 3USS with ISIN IE00B8K7KM88, can access additional information on WisdomTree’s website.

WisdomTree advised securityholders to check with their intermediaries regarding submission deadlines, which may be earlier than those specified in the company’s circular.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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