Immediately following the 2006 midterm elections, when the Democrats last gained control of the House, three of the five worst-performing non-leveraged ETFs were healthcare funds, including XBI.
XBI is up more than 6% over the past week, perhaps indicating that this year, biotech investors were comfortable with the Democrats seizing control of the House.
LABU’s bearish counterpart is the Direxion Daily S&P Biotech Bear 3X Shares (NYSEArca: LABD). That ETF tries to deliver triple the daily inverse returns of the S&P Biotechnology Select Industry Index. That index is an equal-weight benchmark, meaning it leans toward mid- and small-cap biotech names.
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