LABS Fund Description
The Direxion Daily S&P Biotech Bear -1x Shares ETF provides daily inverse exposure to the S&P Biotechnology Select Industry Index.
LABS Factset Analytics Insight
This fund is closing. The last day of trading is on Sept. 25, 2017.
LABS is a daily inverse (-1x) bet on the S&P Biotechnology Select Industry Index. LABS achieves this exposure through a swap contract that gets rebalanced at the end of each trading day. Because of this rebalancing, the fund’s return for periods longer than a day becomes path dependent, and is likely to be different from the inverse of the return of the index for the same period. This makes LABS suitable primarily for short-term traders.
LABS is the first unleveraged fund in the Inverse US Biotech segment, offering an option to those seeking simpler exposure than the previous, more volatile options of -2x and -3x exposure. The expense ratio has minimal impact on the cost of holding these funds for a short period of time, and would matter little to someone who is speculating on the short-term movements of biotech companies. Trading costs as reflected in spreads, and potential premium/discounts are the predominant consideration here.
LABS Factset Analytics Block Liquidity
This measurement shows how easy it is to trade a $1 million USD block of LABS. LABS is rated a N/A out of 5.