The rising prices of drug treatments, more dependence on immuno-oncology and mergers focused on mid-sized biotech company acquisitions are just a few factors spurning the growth in the biotechnology and pharmaceuticals industry, giving ETFs like Daily Pharmaceutical & Medical Bull 3X Shares (NYSEArca: PILL) and Direxion Daily S&P Biotech Bull 3X ETF (NYSEArca: LABU) exceptional returns.
PILL seeks investment results equal to 300% of the daily performance of the Dynamic Pharmaceutical Intellidex Index and concentrates its allocations towards securities of the index and other financial instruments that provide daily leveraged exposure to the index. As such, PILL focuses on equity holdings engaged in research, development, manufacture, sale or distribution of pharmaceuticals and drugs of all types.
Related: Biotech, M&A, and IPOs. Oh My!
The index itself just matched a previous high and PILL itself is posting year-to-date returns of 6.36% according to performance figures from Yahoo! Finance.
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.