Specialty biotech funds jump on promising coronavirus, funding news

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Specialized health-care exchange-traded funds outperformed the broader stock market Wednesday even as stocks rebounded from a sell-off that left the Nasdaq Composite Index in correction territory. The Invesco DWA Health Care Momentum ETF jumped 4.6%, making it among the biggest fund gainers at midday, and putting it on track for its best day since June 15, according to FactSet data. The Loncar Cancer Immunotherapy ETF was up 4.2%. That would be its best day since early August. On Wednesday, the broader stock market was up 2.5%, while the Nasdaq rallied 2.8%. The Invesco fund has as its biggest holding Novavax, Inc. , which is developing a coronavirus vaccine. Novavax shares were up more than 5% Wednesday and have gained 2158% in the year to date. The Loncar fund doesn’t have as much exposure to COVID-19 plays, but one of its bigger holdings, Trillium Therapeutics Inc. was up 38% during the Wednesday session on news of a $25 million equity stake from Pfizer Inc. .
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