LABD -3x Direxion Daily S&P Biotech Bear 3X ETF

BEAR ETF extreme · Issuer Direxion · Tracks Biotech (IBB) · Listed 2015-05-28

Quote & options All leveraged ETFs
Implied AUM
$136.6M
shares out × price
Last close
$7.15
20260929
30-day avg volume
20,982,168
options listed →
LABD realized
—
what holders actually earned
Theoretical -3x
—
-3x × Biotech's return
Decay gap
—
realized minus theoretical

Realized vs theoretical -3x Biotech

Cumulative return of LABD against a clean -3x of Biotech's return over the same window; the red line (right axis) is the gap between them.

Pair counterpart: LABU (+3x bull, Direxion Daily S&P Biotech Bull 3X ETF)
Shorting both legs of a daily-reset bull/bear pair captures their combined decay over time. It isn't free money — the edge depends on borrow rates (often punitive on the bear leg) and assignment risk on hard-to-borrow shares.

Other leveraged products on Biotech

2
SymbolFactorDirectionIssuerNameImplied AUM30d volumeOptions
LABU +3x BULLDirexionDirexion Daily S&P Biotech Bull 3X ETF $580.6M 372,995 ✓
TBXU +2x BULLDirexionDirexion Daily Biotech Top 5 Bull 2X ETF — 6,141

How LABD works

LABD targets -3x the daily return of Biotech — not the return over longer windows. It rebalances every day, so over weeks and months its result drifts away from -3x × the index, usually downward when the market chops around.

The maths: the drag is roughly −½ × N × (N−1) × σ² per period (N = leverage, σ = the index's volatility). For a -3x fund on an index with 25% annual volatility that is several percent a year before fees — the red line above is that drag measured.

Short-term trades (a day or a few) are what these funds are built for. Premium sellers like their rich option IV — see the quote page. Multi-day directional bets work in strong trends and get eaten in chop.

Not investment advice.