Think UVXY is trading at $20? Think again. If you account for all its reverse splits, UVXY’s original $40 is now worth about $0.0000001. Here’s the brutal reality of reverse splits and why these decaying ETFs are designed to go to zero.
What’s a Reverse Split?
A reverse split is when a company combines multiple shares into one to artificially boost the price. It’s like exchanging ten $1 bills for one $10 bill - you have the same value, but it looks different.
Example: You own 100 shares at $2 each ($200 total). After a 1-for-10 reverse split, you own 10 shares at $20 each (still $200 total). Nothing changed except the optics.
For normal companies, reverse splits are often a desperation move. For UVXY? They’re a regular scheduled event, like garbage collection day.
Why These ETFs Must Reverse Split or Die
UVXY, UVIX, and BOIL decay by design
Contango (paying more for future contracts)
Daily rebalancing in leveraged products
Volatility decay
Roll costs
Without reverse splits, these would trade at penny-stock levels. The exchanges don’t like penny stocks, and neither do traders. So these ETFs reverse split regularly to keep prices “tradeable.”
UVXY: The Serial Splitter
UVXY has undergone approximately 10 reverse splits since its inception:
March 2012: 1-for-6
September 2013: 1-for-10
November 2015: 1-for-5
May 2016: 1-for-5
January 2017: 1-for-5
July 2018: 1-for-5
March 2020: 1-for-10
May 2021: 1-for-10
January 2023: 1-for-10
And more coming, guaranteed
BOIL: Natural Gas’s Decay Machine
BOIL (2x leveraged natural gas) has had its own reverse split parade:
2012: 1-for-5
2013: 1-for-10
2015: 1-for-10
2017: 1-for-10
2020: 1-for-20
2023: 1-for-20
More to come as natural gas contango continues
You lost 99.99999%.
Let’s make this crystal clear with a real example:
January 2012: You invest $10,000 in UVXY at $40
You own 250 shares
After all reverse splits to 2024:
Your 250 shares become 0.00005 shares
Value: About $0.001
You didn’t lose 99%. You lost 99.99999%.
The Psychology Trick
Reverse splits are psychological manipulation. New investors see UVXY at $20 and think “it was $40 last year, maybe it’ll go back up!”
No. Last year’s $40 is not the same as today’s $20 after a reverse split. It’s like comparing currencies after a redenomination - completely meaningless without context.
The “Starting Price” Illusion
Let’s start with the fact that breaks people’s brains:
UVXY’s split-adjusted starting price: $121,000,000,000 UVXY’s current price: ~$10
This isn’t an error. TradingView’s historical chart shows the true devastation when you account for all reverse splits since 2011. If you had invested $121 billion in UVXY at inception (theoretically), you’d have $20 today.
Why This Matters for Traders
Every reverse split resets the psychological floor. Retail traders think “$20 is cheap!” not realizing it was “$20” six months ago too... after the last split.
The Reverse Split Calendar
These ETFs typically reverse split when they hit $5-15. It’s predictable:
UVXY: Roughly every 12-18 months
BOIL: Every 18-24 months depending on natural gas volatility
New leveraged ETFs: Follow the same pattern
What This Means for Your Trading
Never hold these long-term - They’re designed to decay to zero
Forget “cheap” prices - No price is cheap
Use for day trading only - Or very short-term hedges
Check split history - Before comparing historical prices
The Conclusion
Every reverse split is an admission of failure, a reset button that wipes out long-term holders while tricking new investors into thinking they’re buying at a “reasonable” price.
The true starting price of UVXY - split-adjusted - is so absurd it sounds fake: hundreds of millions per share. The current $10 price represents a 99.99999% loss from inception.
These aren’t bugs. They’re features. These products are working exactly as designed: transferring wealth from holders to issuers through decay, fees, and the reverse split reset cycle.