Biotech ETFs surge on vaccine rollout, Alexion-AstraZeneca tie-up

Biotech exchange-traded funds rallied Monday as the rollout of the coronavirus vaccine across America shed a bullish light on the industry. The First Trust NYSE Arca Biotechnology Index Fund jumped 4% by the afternoon, while the Defiance Nasdaq Junior Biotechnology ETF and the SPDR S&P Biotech ETF both gained 3.5%. The VanEck Vectors Biotech ETF gained 2.7%, and the Global X Genomics & Biotechnology ETF was 2.3% higher on Monday but has gained the most - 56% - in the year to date among the funds noted here. FactSet data show that among all U.S. domiciled ETFs, the Van Eck fund has the most exposure to Alexion , which on Monday said it had agreed to be bought by AstraZeneca . That 4.5% stake is followed by the First Trust ETF, which has 3.2% of its portfolio in Alexion shares.

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