U.S. president Joe Biden’s infrastructure plan is opening up ETF trading possibilities from multiple angles. One way is playing its healthcare component via funds like the Direxion Daily Healthcare Bull 3X ETF (CURE) and the Direxion Daily S&P Biotech Bull 3X ETF (LABU).
CURE provides a direct play while LABU can be used as an indirect play on healthcare.
“The White House on March 31 unveiled an approximately $2 trillion jobs and infrastructure plan that includes expanding access to long-term care services and other healthcare-related measures,” a Becker’s Hospital Review noted. “The proposal, called the American Jobs Plan, targets aging highways and bridges, as well as climate change, the nation’s digital infrastructure and home care.”
A couple of items the Becker’s Hospital Review noted could be a pair of drivers for a potential healthcare trade:
- President Joe Biden’s proposal provides $18 billion for upgrading veterans hospitals and clinics.
- The plan includes $400 billion to expand access to home- or community-based care for older Americans and disabled people under Medicaid. According to USA Today, this would involve aid to Americans to obtain long-term services and support, as well as increasing wages for essential home care workers who currently earn about $12 per hour.
“Put simply, these are investments we have to make,” Biden said via a USA Today article. “Put another way, we can’t afford not to.”
A Pair of Big 12-Month Movers
CURE and LABU have both seen strong performances the past year. CURE is up almost 80%, while LABU skyrocketed past the 600% mark before pulling back, but is still up over 180%.
CURE seeks daily investment results equal to 300% of the daily performance of the Health Care Select Sector Index. The index CURE tracks includes domestic companies from the healthcare sector, which includes the following industries: pharmaceuticals; health care equipment and supplies; healthcare providers and services; biotechnology; life sciences tools and services; and healthcare technology.
LABU seeks daily investment results that are equal to 300% of the daily performance of the S&P Biotechnology Select Industry Index, with the majority of its allocations going towards securities of the index and other financial instruments that provide daily leveraged exposure to the index or ETFs that track the index. Furthermore, the index is designed to measure the performance of the biotechnology sub-industry based on the Global Industry Classification Standards.
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