At a glance
LABU charges 0.96% a year. It has $494.4M in assets, the 3rd largest of that group; it paid 0.38% of its price in distributions over the past 12 months, annual. Over the past year it returned +91.2% with distributions reinvested (S&P 500: +11.5%), the best of those 4 funds; over three years it returned +70.6% a year. At its worst it fell 76.2% in the 2020 crash (S&P 500: 33.7%) and 88.9% in the 2022 bear market (S&P 500: 24.5%). Its ten largest positions make up 9.4% of the fund, out of 152 in all.
The short version
Direxion Daily S&P Biotech Bull 3x Shares (LABU) is a leveraged ETF that seeks 300% of the daily return of the S&P Biotechnology Select Industry Index, a modified equal-weighted index of US biotech stocks. It gets that exposure through swaps and direct stock holdings. Its exposure resets every day, so results over longer periods can differ sharply from three times the index. It once fell 99.2% from its peak, which makes it a short-term trading tool.
Price history
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LABU +91.2% 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 | |
|---|---|---|---|---|---|---|
| LABU official prospectus, to Dec 31, 2025 | — | +78.73% | — | -39.56% | -20.84% | — |
| LABU price data to Oct 27, 2026 | +52.0% | +91.2% | +70.6% | -24.4% | -8.5% | -19.8% |
- Over the year to Oct 27, 2026, LABU returned +91.2%, 1st of 4 among similar funds.
- Its 5-year annualized return was -24.4% and its 10-year -8.5%.
- In the 2020 COVID crash it fell 76.2% and regained its old high 3.2 months after the low.
- Its worst full calendar year was 2022 (-80.4%); its best was 2017 (+149.1%).
- The deepest fall in its price history was 99.2% (Jul 17, 2015 to Apr 8, 2025), not yet recovered.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +52.0% | — |
| 2025 | +79.2% | +78.73% |
| 2024 | -26.0% | -25.92% |
| 2023 | -12.6% | -13.43% |
| 2022 | -80.4% | -80.29% |
| 2021 | -64.2% | -64.30% |
| 2020 | +74.7% | +74.72% |
| 2019 | +75.5% | +74.64% |
| 2018 | -57.6% | -57.28% |
| 2017 | +149.1% | +148.69% |
| 2016 | -62.9% | -63.03% |
| 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 | Lost 73.7% over that stretch · deepest drop along the way 76.2%, back to its old high 3.2 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 82.8% over that stretch · deepest drop along the way 88.9%, not recovered by the end of the data |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2025 | $1.3400 | +332.3% |
| 2024 | $0.3100 | -74.4% |
| 2023 | $1.2100 | -64.4% |
| 2019 | $3.4000 | -22.7% |
| 2018 | $4.4000 | +69.2% |
| 2017 | $2.6000 |
What's inside
As of Jul 31, 2026, most of the fund sat in cash, Treasury bills and money-market holdings (36.04% of net assets), with its exposure coming from 7 swap and futures positions rather than from owning the stocks outright.
| Holding | Weight | |
|---|---|---|
| APOGEE THERAPEUTICS INC | 1.11% | |
| ORUKA THERAPEUTICS INC | 1.03% | |
| DIANTHUS THERAPEUTICS INC | 0.96% | |
| ERASCA INC | 0.93% | |
| TWIST BIOSCIENCE CORP | 0.92% | |
| KYMERA THERAPEUTICS INC | 0.90% | |
| SPYRE THERAPEUTICS INC | 0.89% | |
| REVOLUTION MEDICINES INC | 0.89% | |
| CG ONCOLOGY INC | 0.88% | |
| PROTAGONIST THERAPEUTICS INC | 0.88% | |
| PRAXIS PRECISION MEDICINES INC | 0.87% | |
| REGENERON PHARMACEUTICALS INC | 0.87% | |
| COGENT BIOSCIENCES INC | 0.85% | |
| NATERA INC | 0.84% | |
| ARROWHEAD PHARMACEUTICALS INC | 0.82% |
By country
United States 63.43%Ireland 0.84%Bermuda 0.81%Netherlands 0.72%Switzerland 0.66%By asset type
Stocks 67.07%What changed recently
- Over the three months to Jul 31, 2026, investors withdrew a net $198.4M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +10.10%, +49.27%, -22.03%.
How it works
LABU follows the S&P Biotechnology Select Industry Index from S&P Dow Jones Indices. The index holds US-based companies in the biotechnology sub-industry of GICS, a standard system for sorting companies by business. Each company must also meet size and trading-volume minimums, starting at $300 million in float-adjusted market value (the value of shares available to trade). The index is "modified equal-weighted," so small and large companies get similar weights. It rebalances quarterly and had 146 constituents as of December 31, 2025. As of July 31, 2026, the largest positions were Apogee Therapeutics (1.1%), Oruka Therapeutics (1.0%) and Dianthus Therapeutics (1.0%). The top 10 made up just 9.4% of assets, and Regeneron was under 1%.
To reach 3x exposure, the adviser, Rafferty Asset Management, pairs stocks with swap agreements. A swap is a contract in which a bank pays the fund the index's return. As of July 31, 2026, stocks were about 67% of net assets, index swaps about 26%, and cash and similar holdings about 36%. If a swap bank fails to pay, the fund loses money.
At each market close, Rafferty resets the exposure: it adds exposure after up days and cuts it after down days. That led to portfolio turnover of 107%. Because returns compound day by day, the prospectus warns that the fund loses money if the index ends flat, and it can lose money even when the index rises over time.
What it really costs
- LABU charges 0.96% a year.
- Of that, 0.75% is the management fee; the rest covers other fund expenses.
- Using the prospectus's standard example, $10,000 invested would cost about $98 in the first year and $1,178 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| LABU | $98 | $306 | $531 | $1,178 |
Structure and tax notes
- Resets its 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 prospectus says LABU seeks its 3x target for a single day only, and its long-term record includes a 99.2% decline that it had not recovered from as of October 27, 2026.
LABU launched on May 28, 2015, so it has no record from the 2008 crisis. In the 2020 COVID crash it fell 76.2% between February 19 and March 18, 2020, then recovered by June 23, 2020. In the 2022 bear market it dropped 88.9% by June 13, 2022, and it had not regained that January 2022 level as of October 27, 2026. Its worst calendar year was 2022, at -80.3%. From its July 2015 peak to April 8, 2025, it lost 99.2%. Anyone who needs cash during a slump could lock in losses close to total. Its yield was 0.38% as of October 27, 2026, paid once a year. It costs 0.96% a year, or $98 in the first year on $10,000 under the SEC's standard example. Past results don't predict future ones, 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 magnified one-day bet on US biotech stocks and can check their positions every trading day.
- Traders who understand swaps, daily resets and compounding, and accept a 0.96% expense ratio for short holding periods.
- Short-term traders who want broad, equal-weighted biotech exposure: the top 10 holdings were just 9.4% of assets as of July 31, 2026.
Look elsewhere if
- Retirees and long-term investors: it fell 99.2% from its 2015 peak and had not recovered as of October 27, 2026.
- Income seekers: the trailing yield was 0.38% as of October 27, 2026, paid only once a year.
- Anyone who can't watch positions daily: it lost 80.3% in 2022 alone, and it can lose money even when the index ends flat.
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 LABU good for long-term investing?
No, not by design. The prospectus says LABU seeks 300% of its index's return for a single day only, not over longer periods. Holding through big swings has been costly. As of December 31, 2025, its average annual returns were -20.84% over 10 years and -39.56% over five years, even after a 78.73% gain in 2025. From its July 2015 peak to April 2025, it lost 99.2%.
Can LABU lose money even if biotech stocks go up?
Yes. LABU resets its 3x exposure at every market close, so returns compound one day at a time. When the index swings up and down, that compounding eats into gains. The prospectus warns that the fund will lose money if the index ends flat over time. It also says the fund can lose money over periods longer than a day even while the S&P Biotechnology Select Industry Index rises.
What's the difference between LABU and BIB?
They track different indexes and use different leverage. LABU seeks 3x the daily return of the equal-weighted S&P Biotechnology Select Industry Index. ProShares Ultra Nasdaq Biotechnology (BIB) seeks 2x the daily return of a Nasdaq biotech index. As of October 27, 2026, LABU returned 91.2% over one year versus 67.2% for BIB. Over three years, LABU averaged 70.6% a year versus 43.2% for BIB. More leverage also means deeper losses in downturns.
Does LABU pay a dividend?
Yes, but the payout is small and comes once a year. As of October 27, 2026, LABU paid $0.91 per share over the trailing 12 months, a yield of 0.38%. Most of its assets sit in biotech stocks, many of which don't pay dividends, plus swaps and cash. The fund aims to magnify short-term price moves, not to provide steady income.
What is LABU's expense ratio?
LABU's expense ratio is 0.96% a year, including a 0.75% management fee, according to its February 26, 2026 prospectus. Under the SEC's standard example, $10,000 invested at a 5% annual return would cost about $98 after one year, $306 after three, $531 after five and $1,178 after ten. Trading costs from its 107% portfolio turnover are not included in that ratio.