Direxion, an ETF company specializing in inverse and leveraged products, plans a one-for-10 reverse split on shares of its triple-inverse emerging markets ETF (NYSEArca: EDZ) on March 4 to address a 92 percent slide in price last year that has made trading costs too high.

The Direxion Daily Emerging Markets Bear 3x Shares, launched in December 2008, has about $150 million in assets and a current net asset value near $5.60 per share.  EDZ’s counterpart, the Direxion Daily Emerging Markets Bull 3x Shares (NYSEArca: EDC), will not be affected. The company executed reverse splits on a pair of financial-industry bull and bear ETFs last summer.

“Direxion does reverse splits as a function of the price level only,” said Andy O’Rourke, director of marketing at Newton, Mass.-based Direxion. “The reverse split of EDZ is warranted at this time.”

The share price of EDC, EDZ’s bullish twin, almost tripled last year, consistent with the sharp run-up in emerging market asset prices since global stock markets bottomed in March 2009.  EDC’s current NAV is just shy of $104 a share, and the ETF has gathered $376 million in assets since its rollout in December 2008.

EDZ’s reverse split will multiply the value of the fund’s shares by 10. Investors left with fractional shares will receive a cash payout. Direxion will redeem fractional shares for cash on March 3.

Direxion has 28 ETFs organized in 14 bull-and-bear pairs.  All magnify returns or losses by a factor of three, according to O’Rourke.