Onyx Rally Powers Biotech ETFs

ETF Trends

A rally of more than 50% in shares Onyx Pharmaceuticals (ONXX) on Monday boosted biotech ETFs, the best-performing sector in early trading.

Onyx shares soared after the company spurned a takeover bid from Amgen (AMGN).

The company said the $120-a-share cash offer “significantly undervalued Onyx and its prospects.” However, Onyx has authorized its financial advisor to contact potential acquirers.

Onyx is a top-10 holding in Market Vectors Biotech ETF (BBH) at 4.5% of the portfolio.

BBH was the largest gainer among unleveraged ETFs on Monday morning with a gain of more than 6%. Biotech has been a leading sector recently. BBH was up 28% year to date through the end of June to more than double the return of the S&P 500. [Biotech ETF Rallies as Cash Tumbles In]

ProShares Ultra Nasdaq Biotechnology (BIB), a leveraged fund, rose 9% on Monday.

Other biotech ETFs rallying early Monday included SPDR S&P Biotech (XBI), iShares Biotech (IBB) and PowerShares Dynamic Biotech & Genome (PBE). [Falling Correlations Good for Biotech ETFs]

Market Vectors Biotech ETF

View photo

.
biotech-etf-onyx

biotech-etf-onyx

The opinions and forecasts expressed herein are solely those of John Spence, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.

View Comments (0)