LABU Stock: Direxion Daily S&P Biotech Bull 3X Shares Profile & Analysis (2026)
A leveraged 3x daily exposure to the S&P Biotechnology Select Industry Index — Updated May 2026 with current AUM, expense ratio, holdings, and performance data.
LABU is the ticker symbol for the Direxion Daily S&P Biotech Bull 3X Shares, a high-octane exchange-traded fund designed for aggressive traders seeking triple the daily performance of the biotechnology sector. This fund provides a way to gain outsized exposure to a complete list of biotechnology companies without owning individual shares. It specifically tracks the S&P Biotechnology Select Industry Index, which includes a diverse range of companies, including those found on the list of small cap cancer stocks.
It is critical to understand that LABU is not a traditional investment. Because of its 3x leverage and daily reset mechanism, it is strictly intended for short-term tactical trading rather than long-term wealth building. Unlike a standard TQQQ stock profile which tracks the tech-heavy Nasdaq-100, LABU focuses narrowly on the high-volatility biotech space. Holding this ETF for more than a single day can lead to returns that differ significantly from three times the index’s cumulative return due to the effects of compounding and volatility decay.
Key Takeaways — LABU Stock
LABU seeks to provide investment results that are 300% of the daily performance of the S&P Biotechnology Select Industry Index.
The leverage is reset daily, meaning long-term returns will likely deviate from the 3x target due to mathematical compounding.
In choppy or sideways markets, LABU can lose value even if the underlying index remains flat, a phenomenon known as volatility decay.
This instrument is designed for day traders and swing traders; it is explicitly not recommended for “buy and hold” portfolios.
LABU — Live Price Chart
Real-time chart from TradingView.
LABU ETF Vitals & Key Statistics
Core data as of May 2026.
| Data Point | Value | Data Point | Value |
|---|---|---|---|
| Full Name | Direxion Daily S&P Biotech Bull 3X Shares | Ticker | LABU |
| Issuer | Direxion Investments | Asset Class | Equities / Sector (Healthcare, Biotechnology) |
| Index Tracked | S&P Biotechnology Select Industry Index (3× leveraged) | Structure | Open-Ended Investment Company |
| Expense Ratio | 0.96% | AUM | ~$526.99M |
| Inception Date | May 28, 2015 | Exchange | AMEX |
| No. of Holdings | 138 | Dividend Yield | 0.39% |
| 52-Week High | $212.45 | 52-Week Low | $53.14 |
| Avg Daily Volume | High Liquidity | YTD Return | 12.4% |
| 1-Year Return | 283.1% | 5-Year Return | 27.47% |
| Category | Leveraged Equity | Dividend Frequency | Quarterly |
LABU Top 10 Holdings (May 2026)
Largest positions by weight. Note that LABU uses swaps and derivatives to achieve leverage.
| Rank | Ticker | Company Name | Sector | Weight % |
|---|---|---|---|---|
| 1 | ALNY | Alnylam Pharmaceuticals | Biotechnology | 2.67% |
| 2 | EXEL | Exelixis | Biotechnology | 2.59% |
| 3 | UTHR | United Therapeutics | Biotechnology | 2.53% |
| 4 | INSM | Insmed | Biotechnology | 2.50% |
| 5 | GILD | Gilead Sciences | Biotechnology | 2.47% |
| 6 | NTRA | Natera | Biotechnology | 2.47% |
| 7 | REGN | Regeneron Pharmaceuticals | Biotechnology | 2.47% |
| 8 | NBIX | Neurocrine Biosciences | Biotechnology | 2.47% |
| 9 | MRNA | Moderna Inc | Biotechnology | 2.42% |
| 10 | INCY | Incyte | Biotechnology | 2.41% |
LABU — Pros & Cons
✓ High Performance Potential
Offers the ability to capture 3x the daily gains of the biotech sector during strong uptrends.
✗ Rapid Capital Loss
A single bad day for the biotech sector can result in a triple-digit percentage loss for LABU shareholders.
✓ High Liquidity
With significant daily volume, it is easy for traders to enter and exit large positions quickly.
✗ Volatility Decay
The math of daily resets means the fund loses value over time in non-trending markets.
✓ Tactical Hedging
Can be used as a short-term aggressive tool to hedge or speculate on regulatory news or clinical trial results.
✗ High Expense Ratio
At 0.96%, it is much more expensive to hold than traditional non-leveraged sector ETFs.
Who Should Consider LABU?
Professional day traders and sophisticated swing traders with high risk tolerance and a clear exit strategy.
Long-term retirement investors, “buy and hold” enthusiasts, or those sensitive to 10%+ daily price swings.
You have a strong conviction that the biotech sector will trend upward strongly over a very short window (1-3 days).
Active brokerage accounts monitored daily. Generally avoided in conservative long-term IRA portfolios.
LABU vs Similar ETFs
Key metrics comparison.
| ETF | Full Name | Expense Ratio | AUM | Holdings | Div Yield | YTD | Best For |
|---|---|---|---|---|---|---|---|
| LABU ★ | Direxion Daily Biotech Bull 3X | 0.96% | ~$526.99M | 138 | 0.39% | 12.4% | 3x Bull Biotech |
| SOXL | Direxion Daily Semi Bull 3X | 0.96% | ~$8.4B | 30 | 0.65% | Varies | 3x Bull Semis |
| TQQQ | ProShares UltraPro QQQ | 0.86% | ~$24B | 100 | 1.12% | Varies | 3x Bull Nasdaq |
| LABD | Direxion Daily Biotech Bear 3X | 0.96% | ~$140M | 138 | N/A | Varies | 3x Bear Biotech |
LABU Technical Analysis
Real-time buy/sell signals.
LABU — Risks & Considerations
Negative Compounding
In a volatile market, the daily reset means that even if the index eventually returns to its starting point, LABU will likely be lower.
Leverage Risk
Using 300% exposure magnifies losses just as much as gains. A 33.3% drop in the index in one day could theoretically wipe out the ETF.
Sector Concentration
Biotech is notoriously sensitive to FDA approvals and clinical trial results, making the underlying index highly unpredictable.
Derivatives Exposure
The fund uses swap agreements which introduces counterparty risk and additional costs not seen in traditional ETFs.