(LABD) Direxion Daily S&P Biotech - Overview
ETF Category: Trading--Inverse Equity | Exchange: NYSE ARCA (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 an inverse leveraged exchange-traded fund designed to provide 300% of the daily opposite performance of the S&P Biotechnology Select Industry Index. To achieve this objective, the fund allocates at least 80% of its net assets to financial derivatives, including swap agreements, futures contracts, and short positions.
The underlying index tracks a sub-industry characterized by high capital expenditures and long regulatory approval cycles through the FDA. Because this ETF resets daily, it is intended for short-term tactical trading rather than long-term investment, as the effects of compounding can cause performance to deviate significantly from the benchmark over time. Investors can use ValueRay to further analyze how market volatility impacts leveraged fund decay.
- Rising interest rates reduce valuations for speculative pre-revenue biotechnology companies
- Clinical trial failures and FDA rejections trigger broad sector sell-offs
- Increased capital costs constrain venture funding and M&A activity in biotech
- Daily compounding and leverage decay impact returns during periods of high volatility
- Reduced healthcare spending and legislative drug pricing reforms pressure industry margins
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.