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 the S&P Biotechnology Select Industry Index, an equal-weighted index of US biotech stocks tracked in unleveraged form by the popular XBI. The vast majority of the fund's exposure is to Biotechnology & Medical Research, but it also captures significant exposure to Pharmaceuticals as well. LABU 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. What LABU brings to the table that competitor BIB does not is its outsized leverage factor. The fund is reasonably liquid, with decent volume and modest spreads, an important factor to consider as most investors won't hold the fund for long. LABU charges a typically steep fee for a leveraged ETF, but most investors won't stick around long enough to realize those holding costs.
LABU MSCI ESG Analytics Insight
Direxion Daily S&P Biotech Bull 3X Shares has an MSCI ESG Fund Rating of BBB based on a score of 4.54 out of 10. The MSCI ESG Fund Rating measures the resiliency of portfolios to long-term risks and opportunities arising from environmental, social, and governance factors. ESG Fund Ratings range from best (AAA) to worst (CCC). Highly rated funds consist of companies that tend to show strong and/or improving management of financially relevant environmental, social and governance issues. These companies may be more resilient to disruptions arising from ESG events.
The fund’s Peer Rank reflects the ranking of a fund’s MSCI ESG Fund Quality Score against the scores of other funds within the same peer group, as defined by the Thomson Reuters Lipper Global Classification. Direxion Daily S&P Biotech Bull 3X Shares ranks in the 20th percentile within its peer group and in the 13th percentile within the global universe of all funds covered by MSCI ESG Fund Ratings.
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.