ETFs with big ON Semiconductor stakes jump on Starboard news

/ / News

Exchange-traded funds with heavy exposure to ON Semiconductor Corporation jumped Thursday morning as the stock surged on a report that an activist investor had taken a stake. At a virtual conference Thursday, Starboard Value LP CEO Jeff Smith said he thinks the company is undervalued. ON shares rocketed more than 11% higher. The Invesco Dynamic Semiconductors ETF rose 1.3%, while the SPDR S&P Semiconductor ETF gained 1.4%. Both ETFs have about 3% of their portfolios allocated to ON.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.