ETF Focus: Biotech ETFs rally to records on merger news

The largest exchange-traded funds to track the biotechnology sector rallied on Monday, surging after a pair of multibillion-dollar deals were announced.

The SPDR S&P Biotech ETF XBI, +4.61% surged 3.8% in its biggest one-day percentage gain since June 2017. With the day’s advance, the fund hit an intraday record and was on track for a record close.

The iShares Nasdaq Biotechnology ETF IBB, +2.74% rose 2.6% to $114.90, hitting its highest level since September 2015. The day’s move represented the biggest one-day percentage gain for the fund since August.

The SPDR fund has gained 9% thus far in 2018, well above the 5.4% rise of the S&P 500 index SPX, +0.51% The iShares product has risen 7.6%.

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