(LABD) Direxion Daily S&P Biotech - Overview
ETF Category: Trading--Inverse Equity | Exchange: NYSE (USA) | Market Cap: 77m USD | Total Return: -79.8% in 12m
Avg Turnover: 77.7M
Warnings
No concerns identified
Tailwinds
Tailwind
The Direxion Daily S&P Biotech Bear 3X Shares (LABD) is a leveraged inverse ETF designed to provide daily investment results equal to 300% of the opposite performance of the S&P Biotechnology Select Industry Index. To achieve this 3X short exposure, the fund invests at least 80% of its net assets in financial derivatives such as swap agreements, futures contracts, and short positions.
The underlying index tracks the biotechnology sub-industry, a sector characterized by high capital expenditures and long product development cycles often dependent on FDA regulatory approvals. Because the fund utilizes daily rebalancing to maintain its leverage ratio, it is intended for short-term trading rather than long-term investment, as compounding can cause performance to deviate significantly from the inverse index return over extended periods.
Investors should evaluate historical volatility trends on ValueRay to better understand the risks associated with leveraged inverse products. As a non-diversified micro-cap fund established in 2015, LABD remains highly sensitive to rapid shifts in healthcare policy and clinical trial outcomes.
- Higher interest rates increase capital costs for pre-revenue biotech firms
- FDA clinical trial failures or regulatory rejections trigger sector selloffs
- Reduced M&A activity lowers biotech valuations and index performance
- Broad equity market volatility drives outflows from high-beta healthcare growth stocks
As of June 07, 2026, the stock is trading at USD 14.94 with a total of 5,809,172 shares traded.
Over the past week, the price has changed by +16.99%,
over one month by +7.17%,
over three months by -21.24% and
over the past year by -79.75%.
Direxion Daily S&P Biotech has no consensus analysts rating.