LABU: DIREXION DAILY S&P BIOTECH BULL 3X SHARES DIREXION DAILY S&P BIOTECH BULL 3X SHARES
Share-split context: A reverse split was recorded on Dec 4, 2023 with coefficient 0.05. A reverse split combines multiple old shares into fewer new shares and mechanically raises the quoted price per share. That mechanical increase does not restore lost investment value. The returns in this report are already split-adjusted, while reverse-split history remains a separate structural warning.
What this ETF is trying to do
The Direxion Daily S&P Biotech Bull 3X Shares (LABU) is a leveraged ETF. This means it uses financial tools to try and amplify the daily returns of the S&P Biotechnology index. Specifically, it is a "3X" fund, which aims to provide three times the daily performance of its benchmark.
What the numbers show
Because this ETF has a history of share splits, we look at split-adjusted returns to see how it has performed.
• Price Return: This measures only the change in the share price. The one-year price return is approximately 119.98%, and the three-year price return is approximately 212.84%. The year-to-date (YTD) price return is approximately 42.89%.
• Total Return: This reflects the overall return, including distributions. The one-year total return is approximately 121.15%, and the three-year total return is approximately 217.94%.
• Long-term Trend: Over a longer period, the five-year total return is approximately -78.00%.
Top Holdings
As of October 8, 2026, the fund holds 169 assets. The top holdings (which are a partial list) include:
• SPSIBI Swap Asset Leg: 77.29%
• Goldman Finl Sq Trsry Inst 506: 5.89%
• Cash: 2.23%
• Dreyfus Govt Cash Man Ins: 1.17%
• Twist Bioscience Corp: 0.48%
Income and distribution explanation
LABU has a distribution yield of approximately 0.40%. It pays distributions irregularly and has made one payout in the last 12 months. It is important for new investors to know that a distribution yield is not the same as a total return. A high yield does not guarantee that an investor earned that percentage as a profit, nor does it guarantee the safety of the original money invested.
NAV erosion explanation
"NAV erosion" happens when the value of an ETF's underlying assets declines over time. This fund has a history of reverse splits. In a reverse split, multiple old shares are combined into fewer new shares, which mechanically raises the share price. This increase does not restore lost investment value.
However, the current erosion-risk score is 100, and the erosion severity is labeled as "good." The data indicates that no price erosion is currently detected, and the severe erosion-risk flag is false.
Pros
• Strong split-adjusted price and total returns over the last one and three years.
• No current severe erosion-risk flag.
Cons
• Significant loss over a five-year period (approximately -78.00% total return).
• History of reverse splits.
• Irregular distribution frequency.
Beginner takeaway
LABU is a high-risk, leveraged tool designed for short-term goals rather than long-term saving. While recent one-year and three-year returns are high, the five-year return shows a steep decline. Investors should remember that leveraged ETFs can be very volatile.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | SPSIBI SWAP ASSET LEG | n/a | 77.29% |
| 2 | GOLDMAN FINL SQ TRSRY INST 506 | n/a | 5.89% |
| 3 | CASH | n/a | 2.23% |
| 4 | DREYFUS GOVT CASH MAN INS | n/a | 1.17% |
| 5 | TWIST BIOSCIENCE CORP | TWST | 0.48% |
| 6 | MODERNA INC | MRNA | 0.47% |
| 7 | NATERA INC | NTRA | 0.41% |
| 8 | ABBVIE INC | ABBV | 0.39% |
| 9 | CRISPR THERAPEUTICS AG | CRSP | 0.39% |
| 10 | SPYRE THERAPEUTICS INC | SYRE | 0.39% |