LABUDirexion Daily S&P Biotech Bull 3X Shares
LABU Fund Description
LABU provides daily 3 times exposure to the S&P Biotechnology Select Industry Index.
LABU Factset Analytics Insight
LABU is a daily 3x leveraged bet on an equal-weighted index of US biotech stocks. The vast majority of the fund's exposure is to biotechnology and medical research but also captures significant exposure to pharmaceuticals as well. As a leveraged product, the fund is not a buy-and-hold investment. It gets its leverage exposure through a portfolio of derivatives contracts that gets rebalanced at the end of each trading day. Because of that, the fund's return for periods longer than a day becomes path-dependent and is likely to be different from 3x the return of the index for the same period. This makes LABU suitable primarily for short-term traders. Over time, compounding effects can lead to profound differences in expected returns relative to the index.
LABU Factset Analytics Block Liquidity
This measurement shows how easy it is to trade a $1 million USD block of LABU. LABU is rated a 5 out of 5.