LABD is the first triple-leveraged biotech ETF to come to market, though it has since been joined by the ProShares UltraPro Short NASDAQ Biotechnology (NasdaqGM: ZBIO), the leveraged bearish answer to the iShares Nasdaq Biotechnology ETF (NasdaqGS: IBB).
Like any leveraged ETF, LABD should come with the warning label “When things are good, they’re good, but when they’re bad, they’re really bad.” LABD was good yesterday, gaining 4.1%, but the ETF has lost 25.3% since coming to market.
Direxion Daily S&P Biotech Bear 3X Shares
ETF Trends editorial team contributed to this post.