Direxion Daily S&P Biotech Bull 3X Shares

Frequently Asked Questions About LABU

What does LABU invest in?

Direxion Shares ETF Trust - Direxion Daily S&P Biotech Bull 3X ETF is an exchange traded fund launched by Direxion Investments. It is managed by Rafferty Asset Management, LLC. It invests in public equity markets of the United States. It invests directly, through derivatives and through other funds in stocks of companies operating across health care, pharmaceuticals, biotechnology and life sciences sectors. It uses derivatives such as futures, swaps to create its portfolio. The fund invests in growth and value stocks of companies across diversified market capitalization. It seeks to track 3x the daily performance of the S&P Biotechnology Select Industry Index. Direxion Shares ETF Trust - Direxion Daily S&P Biotech Bull 3X ETF was formed on May 28, 2015 and is domiciled in the United States.

What is the expense ratio of LABU?

Direxion Daily S&P Biotech Bull 3X Shares (LABU) charges an expense ratio of 0.96%. This is the annual fee deducted from fund assets to cover management and operations.

Is LABU a good long-term hold?

LABU 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 LABU's daily reset work?

LABU 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 LABU?

Direxion Daily S&P Biotech Bull 3X Shares (LABU) manages $612.4M 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 LABU actively managed or an index fund?

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