Direxion Daily S&P Biotech Bear 3X ETF

Frequently Asked Questions About LABD

What does LABD invest in?

The Direxion Daily S&P Biotech Bull and Bear 3X ETFs are designed to deliver daily investment returns reflecting triple (300%) the performance of the S&P Biotechnology Select Industry Index, or triple its inverse (opposite) performance, before factoring in any fees or expenses. It's important to note, however, that there is no assurance these funds will successfully achieve their intended daily objectives.

What is the expense ratio of LABD?

Direxion Daily S&P Biotech Bear 3X ETF (LABD) charges an expense ratio of 1.08%. This is the annual fee deducted from fund assets to cover management and operations.

Is LABD a good long-term hold?

LABD is a leveraged fund designed to deliver a daily multiple of its underlying index. Daily reset compounding means returns over multi-day periods can diverge significantly from the headline multiple, typically with negative drift in choppy markets. These funds are designed for short-term tactical use, not buy-and-hold. Review the fund's prospectus before holding more than a few days.

How does LABD's daily reset work?

LABD rebalances exposure each trading day to maintain its target leverage ratio against the next day's move. The daily reset means returns compound at the daily level, so a +1%, −1% sequence on the underlying doesn't return the underlying to flat after the leverage multiplier. Over time this path-dependence erodes returns in volatile markets and amplifies them in trending markets.

How big is LABD?

Direxion Daily S&P Biotech Bear 3X ETF (LABD) manages $77.1M in total assets. AUM determines bid-ask liquidity and the fund's vulnerability to closure. Funds below ~$50M are at higher risk of liquidation.

Is LABD actively managed or an index fund?

LABD's management style is described in the fund's prospectus. See the description on the Summary tab for the published strategy.