On 4/20/2021, the Vanguard Russell 1000 Growth ETF (VONG) completed a 4-for-1 forward stock split. As of 4/20/2021, shareholders hold 4 shares of VONG for every 1 share previously held. As a result, VONG has adjusted it’s price per share to accommodate the increase in the ETF’s outstanding shares. A forward stock split does not by itself change the total dollar value of your position. But, as always, the value of the stock or ETF may change due to market fluctuation.
To calculate the number of shares that you will have after the split, multiply the ratio of the stock split by the number of shares you held at the time of the split (4-for-1 ratio means 4 divided by 1 equals 4). To do the calculation for your own shares, use the following equation: Shares previously owned x 4 = New amount of shares held.
Example 4-for-1 forward stock split:
If you owned 1 share of Example Company valued at $250 per share, your investment would have a total value of $250 (price per share x amount of shares held). At the time the company completed the 4-for-1 forward split, you would now own 4 shares valued at $62.50 per share, resulting in a total value invested of $250. The total value invested remains the same regardless of the split.
This corporate action affects all shareholders holding VONG at the time of the split. Due to this event, scheduled orders for VONG were not accepted, or cancelled, until after the forward split was fully processed. Note that this stock’s historical graphs were updated to take the split into account.
If you have questions about corporate actions that affect shares you are holding, we recommend contacting the appropriate company’s investor relations team or visiting the investor relations page on their website for more information.
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