What is the price of Labu stock today?
LABU is a daily 3x leveraged bet on an equal-weighted index of US biotech stocks. The vast majority of the fund's exposure is to biotechnology and …
What is the Labu ETF?
· About LABU. The fund invests at least 80% of its net assets (plus borrowing for investment purposes) in financial instruments and securities of the index, exchange-traded funds (ETFs) that track the index and other financial instruments that provide daily leveraged exposure to the index or ETFs that track the index.
What are the risks of investing in Labu?
· The Direxion Daily S&P Biotech Bull 3X ETF price fell by -15.27% on the last day (Friday, 6th May 2022) from $7.99 to $6.77. and has now fallen 3 days in a row. During the day the ETF fluctuated 17.50% from a day low at $6.63 to a day high of $7.79. The price has fallen in 6 of the last 10 days and is down by -35.59% for this period.
How doeslabu work?
· Direxion Daily S&P Biotech Bull 3x Shares trades on the New York Stock Exchange (NYSE)ARCA under the ticker symbol "LABU." Who are Direxion Daily S&P Biotech Bull 3x Shares' major shareholders? Direxion Daily S&P Biotech Bull 3x Shares' stock is owned by many different institutional and retail investors.
What is a labu fund?
Unlike a traditional ETF, LABU is not a collection of holdings designed to mirror an index; instead, this fund is a daily 3x leveraged bet on the performance of the S&P Biotechnology Select Industry Index. This is accomplished through exposure to options and derivatives contracts, which are subsequently rebalanced at the end of every trading session.
When was Labu released?
LABU was released to the public in May 2015, and many viewed it as a direct challenge to the ProShares Ultra NASDAQ Biotechnology ETF. The expense ratio for LABU is contractually capped at 0.95% through an arrangement between Direxion and the fund adviser.
What is biotechnology ETF?
This ETF represents an opportunity for short-term speculation on biotechnology stocks in the United States. It should not be held for even moderate periods of time, and it cannot reasonably form part of a core or satellite portfolio.
What is the underlying index?
The underlying index is spread out over nearly 90 different equity securities in the biotechnology and healthcare sectors. This index has performed well since the financial crisis of 2007-08, largely on the back of merger and acquisition activity and the influence of the Affordable Care Act.
Is Labu a long term investment?
LABU seeks daily leveraged investment results and is intended as a short-term trading vehicle, not a long-term investment holding. The word "bull" in the title indicates that the fund is meant to appreciate when the underlying index performs well. Direxion does have an inverse sister fund for LABU: The Direxion Daily S&P Biotech Bear 3x Shares ETF.
Is Labu a small ETF?
This is a very small ETF. Its $91 million in assets under management (AUM) is less than one-eighth as large as the ProShares Ultra NASDAQ Biotechnology ETF. The only competitive advantage that LABU could have over the ProShares ETF at this point is added exposure: The ProShares ETF is 2x leveraged, whereas LABU is 3x leveraged.
What happened to stocks after the first quarter?
stocks strongly rebounded on an unprecedented fiscal and monetary stimulus, progress in the development of a coronavirus vaccine or treatment as well as optimism over ...
Why are ETFs leveraged?
Investors flocked to leveraged ETFs to cash in on the opportunity offered by an improving economy and a rising stock market.
What happens when you add leverage to the mix?
Traders understand that when you add leverage to the mix, the results can be explosive gains, but on the flip side, it could be losses and a blown trading account. Yahoo Finance focused on top leveraged...
How has Direxion Daily S&P Biotech Bull 3x Shares' stock been impacted by Coronavirus (COVID-19)?
Direxion Daily S&P Biotech Bull 3x Shares' stock was trading at $30.01 on March 11th, 2020 when Coronavirus (COVID-19) reached pandemic status according to the World Health Organization. Since then, LABU shares have decreased by 45.0% and is now trading at $16.52. View which stocks have been most impacted by COVID-19.
What other stocks do shareholders of Direxion Daily S&P Biotech Bull 3x Shares own?
Based on aggregate information from My MarketBeat watchlists, some companies that other Direxion Daily S&P Biotech Bull 3x Shares investors own include Micron Technology (MU), NVIDIA (NVDA), Direxion Daily S&P Biotech Bear 3x Shares (LABD), Alibaba Group (BABA), ProShares UltraPro QQQ (TQQQ), Advanced Micro Devices (AMD), Direxion Daily Semiconductors Bull 3x Shares (SOXL), Boeing (BA), (CGC) and Gilead Sciences (GILD)..
What is Direxion Daily S&P Biotech Bull 3x Shares' stock symbol?
Direxion Daily S&P Biotech Bull 3x Shares trades on the New York Stock Exchange (NYSE)ARCA under the ticker symbol "LABU."
Who are Direxion Daily S&P Biotech Bull 3x Shares' major shareholders?
Direxion Daily S&P Biotech Bull 3x Shares' stock is owned by many different retail and institutional investors.
Which major investors are selling Direxion Daily S&P Biotech Bull 3x Shares stock?
LABU stock was sold by a variety of institutional investors in the last quarter, including Susquehanna International Group LLP, and Parallax Volatility Advisers L.P..
Which major investors are buying Direxion Daily S&P Biotech Bull 3x Shares stock?
LABU stock was bought by a variety of institutional investors in the last quarter, including Cutler Group LP, Citadel Advisors LLC, Wolverine Trading LLC, Requisite Capital Management LLC, Traynor Capital Management Inc., Squarepoint Ops LLC, Hellman Jordan Management Co. Inc. MA, and JBF Capital Inc..
How do I buy shares of Direxion Daily S&P Biotech Bull 3x Shares?
Shares of LABU can be purchased through any online brokerage account. Popular online brokerages with access to the U.S. stock market include WeBull, Vanguard Brokerage Services, TD Ameritrade, E*TRADE, Robinhood, Fidelity, and Charles Schwab. Compare Top Brokerages Here.
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Direxion Daily S&P Biotech Bull 3X Shares (LABU) ETF Bio
The investment objective of the Direxion Daily S&P Biotech Bull 3X ETF seeks daily investment results, of 300% of the performance of the S&P Biotechnology Select Industry Index.
Understanding Direxion Daily S&P Biotech Bull 3X Fund
Labu Characteristics
- LABU was released to the public on May 28, 2015, and many viewed it as a direct challenge to the ProShares Ultra NASDAQ Biotechnology ETF (BIB). The net expense ratio for LABU is 1.02%.1However, administrative fees do not really matter much for daily traded funds because an investor is exposed to them for so short a period of time. Trading fees and...
Suitability and Recommendations
- Any funds that pursue daily leverage are riskier than alternatives without leverage. Leveraged ETFs magnify the gains and losses of their underlying indexes. If the S&P Biotechnology Select Industry Index suffers losses of 10% over the course of one trading day, an investor holding LABU is liable to lose up to 30% or more. As an extreme case, it is possible for an investor to lose all o…
The Bottom Line
- LABU is designed for and best used by sophisticated investors. Interested buyers should understand the risks of using leverage and the consequences of daily leveraging, and they should be comfortable in a daily monitoring capacity for their investments. This ETF represents an opportunity for short-term speculation on biotechnology stocks in the United States. It should no…