Market Extra: October’s record for M&A is a boon for merger-themed ETF

The U.S. deal market is red-hot right now, and that could mean an uptick in interest for the exchange-traded funds that attempt to capitalize on merger mania.

Thus far in October, there have been $248.9 billion in announced corporate tie-ups, according to Dealogic, a figure representing the highest U.S. merger-and-acquisition total value ever in October, excluding spin-offs. For the year-to-date period, $1.32 trillion has been announced in U.S. M&A, compared with $1.99 trillion during the same stretch in 2015.

Companies have been using acquisitions as a way to expand at a time when organic growth remains hard to come by. Other factors, including high levels of cash on hand and low interest rates—which makes for easier deal financing—have also contributed to the activity.

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