Stock splits are when a company divides its existing shares into multiple shares. Despite not changing the overall value of the company, stock splits are often done to keep share prices in a certain range and show confidence in the company's future. Recent data shows that stock splits can lead to higher returns for shareholders, not because the shares become more affordable, but because they signal the company's strength. However, for exchange-traded funds, there is little evidence that shareholders benefit from stock splits or are more interested in the funds after a split.