At a glance
LABD charges 1.07% a year. It has $54.2M in assets, the 2nd largest of that group; it paid 6.58% of its price in distributions over the past 12 months, quarterly. Over the past year it returned −74.4% with distributions reinvested (S&P 500: +11.5%), the weakest of those 4 funds; over three years it returned −70.7% a year. At its worst it fell 23.8% in the 2020 crash (S&P 500: 33.7%) and 80.5% in the 2022 bear market (S&P 500: 24.5%), and is still below its earlier high.
The short version
Direxion Daily S&P Biotech Bear 3x Shares (LABD) uses swap contracts to aim for three times the opposite of the S&P Biotechnology Select Industry Index's return, for a single day only. It is a leveraged, inverse fund that resets daily. It can gain when U.S. biotech stocks fall, but over longer periods it has lost value steadily. Its average annual return over 10 years was -54.36% as of December 31, 2025, and its expense ratio is 1.07%.
Price history
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LABD -74.4% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| LABD official prospectus, to Dec 31, 2025 | — | -70.03% | — | -37.68% | -54.36% | — |
| LABD price data to Oct 27, 2026 | -65.3% | -74.4% | -70.7% | -49.5% | -58.6% | -55.6% |
- Over the year to Oct 27, 2026, LABD returned -74.4%, 4th of 4 among similar funds.
- Its 5-year annualized return was -49.5% and its 10-year -58.6%.
- In the 2020 COVID crash, while stocks fell, it gained 100%.
- Its worst full calendar year was 2020 (-89.7%); its best was 2021 (+1.9%).
- The deepest fall in its price history was 100% (Feb 11, 2016 to Aug 25, 2026), not yet recovered.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | -65.3% | — |
| 2025 | -70.6% | -70.03% |
| 2024 | -24.8% | -21.59% |
| 2023 | -43.6% | -41.61% |
| 2022 | -33.0% | -32.91% |
| 2021 | +1.9% | +2.14% |
| 2020 | -89.7% | -89.75% |
| 2019 | -70.8% | -70.61% |
| 2018 | -5.2% | -7.08% |
| 2017 | -75.7% | -75.63% |
| 2016 | -39.0% | -39.05% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Gained 100% over that stretch · deepest drop along the way 23.8%, not recovered by the end of the data |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Gained 2.9% over that stretch · deepest drop along the way 80.5%, not recovered by the end of the data |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.2400 | |
| 2025 | $0.3500 | 0.0% |
| 2024 | $0.3500 | -40.7% |
| 2023 | $0.5900 | +555.6% |
| 2022 | $0.0900 | -99.1% |
| 2020 | $10.0000 | -77.3% |
| 2019 | $44.0000 | -68.6% |
| 2018 | $140.0000 |
What's inside
As of Jul 31, 2026, most of the fund sat in cash, Treasury bills and money-market holdings (137.54% of net assets), with its inverse exposure coming from 6 swap and futures positions rather than from owning the stocks outright.
| Holding | Weight |
|---|
By country
By asset type
What changed recently
- Over the three months to Jul 31, 2026, investors added a net $15.8M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: -13.66%, -39.07%, +20.97%.
How it works
The fund's target is a biotech index from S&P Dow Jones Indices. The index takes U.S. companies from the S&P Total Market Index that fall in the biotechnology sub-industry of GICS, a standard system for sorting companies by industry. Each company must also pass tests for size and trading activity, with minimum market values between $300 million and $500 million. The index is "modified equal-weighted," so small biotech firms count about as much as the giants. It is rebalanced quarterly and had 146 companies as of December 31, 2025.
LABD does not own these stocks. At least 80% of its assets go into swaps, futures or short positions that together pay -3x the index's daily return. A swap is a contract with a bank, called a counterparty, that pays the fund when the index falls. If that bank fails to pay, the fund loses money. As of July 31, 2026, the fund held six index swaps. Cash and short-term holdings equaled about 138% of its $54.2 million in net assets.
At each day's close, adviser Rafferty Asset Management resets the fund's exposure. Because daily returns compound, results over longer periods can differ sharply from -3x the index, usually for the worse in choppy markets. The fund also creates and redeems shares mainly for cash, so it is expected to be less tax-efficient than most ETFs.
What it really costs
- LABD charges 1.07% a year.
- Of that, 0.75% is the management fee; the rest covers other fund expenses.
- The fee includes a 0.01% waiver from the adviser, which may end.
- Using the prospectus's standard example, $10,000 invested would cost about $109 in the first year and $1,316 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| LABD | $109 | $342 | $595 | $1,316 |
Structure and tax notes
- Resets its inverse exposure every day. Over periods longer than a day, compounding means returns can differ sharply from -3× the index — usually worse in choppy markets. Built for short-term trading, not buy-and-hold.
In a retirement portfolio
The fund seeks its target for one trading day only, and over multi-year periods it has lost nearly all of its value.
LABD launched in May 2015, so it has no record from the 2008 crisis. In the 2020 COVID crash, it roughly doubled between the market's February 19 peak and its March 23 low. Even so, 2020 became its worst calendar year, at -89.75%. In the 2022 bear market, it gained 2.9% across the whole episode but fell 80.5% between May and August. From February 2016 to August 2026, it lost nearly all of its value and has not recovered.
The trailing yield was 6.58% as of October 27, 2026, paid quarterly. That income has been small next to the price losses. In the SEC's standard example, costs on $10,000 come to $1,316 over 10 years. Anyone who needs to sell in a bad stretch could lock in deep losses. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Active traders who want a one-day bet against U.S. biotech stocks and can check their positions every trading day.
- Experienced investors looking for a brief hedge on a biotech-heavy stock position who accept the 1.07% expense ratio and how daily resets compound.
- Traders who want -3x biotech exposure, not the -2x of ProShares UltraShort Nasdaq Biotechnology (BIS), and accept the larger daily swings.
Look elsewhere if
- Retirees and long-term savers: the fund lost nearly all its value between February 2016 and August 2026 and has not recovered.
- Income seekers: the 6.58% trailing yield came with a 74.4% one-year price loss as of October 27, 2026.
- Anyone who wants steady results: quarterly returns have ranged from -75.18% to +75.03%, and one-year volatility was 88.2%.
Close alternatives
Matched by leveraged/inverse funds on the same index (technology), same direction.
Net assets from each fund's latest N-PORT or annual report where available. Returns through Oct 27, 2026.Questions investors ask
Is LABD a good long-term investment?
LABD is not designed for long-term holding. The prospectus says it does not seek its target for any period longer than one trading day. As of December 31, 2025, its average annual returns were -70.03% over one year, -37.68% over five years and -54.36% over 10 years. It lost money in every calendar year from 2016 through 2025 except 2021, when it gained 2.14%.
Why does LABD lose money even when biotech stocks go down?
LABD resets its exposure every day, so its returns compound one day at a time. When biotech stocks bounce up and down, these daily resets wear away value. The fund can fall even if the index ends a period lower. The prospectus also warns that most assets have historically risen over time, and that works against inverse funds. Fees and trading costs add to the drag.
What's the difference between LABD and BIS?
Both funds bet against biotech stocks for one day at a time, but they work differently. LABD seeks -3x the daily return of an equal-weighted S&P biotech index. ProShares UltraShort Nasdaq Biotechnology (BIS) seeks -2x the return of a Nasdaq biotech index, a different benchmark. As of October 27, 2026, LABD's one-year return was -74.4% against -49.8% for BIS. LABD is also far larger, with $54.2 million in net assets compared with about $3.6 million for BIS.
Does LABD pay dividends?
Yes. LABD pays distributions quarterly. Over the past 12 months it paid about $0.47 per share, a trailing yield of 6.58% as of October 27, 2026. The fund holds swaps and cash, not stocks, so this income is not a stock dividend. Payouts from funds like this usually come from interest on cash and short-term holdings. The income has been small next to the fund's price losses.
What is LABD's expense ratio?
LABD's expense ratio is 1.07% a year, according to its prospectus filed February 26, 2026. The management fee makes up 0.75% of that. In the SEC's standard example, $10,000 invested with a 5% yearly return would cost about $109 after one year, $595 after five years and $1,316 after 10 years. The fund also pays trading and financing costs because it creates and redeems shares mainly for cash.