LABU +3x Direxion Daily S&P Biotech Bull 3X ETF

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

Quote & options All leveraged ETFs
Implied AUM
$521.9M
shares out × price
Last close
$198.86
20261016
30-day avg volume
404,555
options listed →
LABU realized257d
77.52%
what holders actually earned
Theoretical +3x
101.63%
+3x × Biotech's return
Decay gap
-24.11%
drag vs a clean +3× of the index

Realized vs theoretical +3x Biotech

Over 257 trading days: LABU 77.52% · Theoretical +3× 101.63% · Decay gap -24.11% (drag)

Pair counterpart: LABD (-3x bear, Direxion Daily S&P Biotech Bear 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
TBXU +2x BULLDirexionDirexion Daily Biotech Top 5 Bull 2X ETF — 4,625
LABD -3x BEARDirexionDirexion Daily S&P Biotech Bear 3X ETF $152.8M 23,382,355 ✓

How LABU works

LABU 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.