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Direxion Daily S&P Biotech Bull 3x Shares (LABU) Sharpe Ratio: 4.01

ETF · Currency in USD · Last updated Jun 23, 2026

LABU is a passive ETF by Direxion tracking the investment results of the S&P Biotechnology Select Industry Index (300%). LABU launched on May 28, 2015 and has a 1.12% expense ratio.

LABU's Sharpe Ratio of 4.01 indicates that for each unit of volatility, it generates 4.01 units of excess return above the risk-free rate. The ratio is calculated using historical daily returns over the past 12 months (as of Jun 23, 2026).

Sharpe uses total volatility (standard deviation) which includes both upside and downside price movements, making it useful for comparing risk-adjusted returns across different assets. For how to read this number and when it can mislead, see Sharpe Ratio Explained.

LABU Sharpe Ratio Rank

LABU Sharpe Ratio Rank: 96.296
Exceptional

LABU ranks above 96.2% of all investments in our database based on Sharpe Ratio over the past 12 months, demonstrating exceptional risk-adjusted returns. Securities are ranked from 0 (worst) to 100 (best).

What moves the rank

  • Strong returns with low total volatility → Higher rank
  • High volatility (both upside and downside) → Lower rank
  • Consistent returns → Higher rank than volatile returns of same magnitude
  • Sharp drawdowns increase volatility → Lower rank

What you can do with this information

  • Suitable as a core holding given strong risk-adjusted returns
  • Monitor rank changes to detect deteriorating return-to-volatility profile
  • Exceptional Sharpe ratio supports larger position sizes
  • Compare with category peers to assess whether strength is investment-specific or category-wide

LABU Sharpe Ratio Market Positioning

The chart shows LABU's Sharpe Ratio relative to all ETFs on our platform, with color zones indicating percentile rankings. Higher ratios indicate better risk-adjusted returns.

  • Red zone (bottom 25%): 0.86 or lower
  • Yellow zone (middle 50%): 0.86 to 2.31
  • Green zone (top 25%): 2.31 or higher
  • Top 1%: 7.29+
  • Median: 1.67 — half of all investments score higher

How it compares to other similar ETFs

The table compares Direxion Daily S&P Biotech Bull 3x Shares's Sharpe Ratio with other ETFs in the Leveraged Equities category across multiple time periods, showing how LABU's risk-adjusted performance compares to similar funds.

Data shows 1-, 5-, and 10-year periods, plus each fund's all-time average, as of Jun 23, 2026.

SymbolName1Y Sharpe Ratio5Y Sharpe Ratio10Y Sharpe RatioAll Time Sharpe Ratio
MULLGraniteShares 2x Long MU Daily ETF34.53
INTWGraniteShares 2x Long INTC Daily ETF15.45
SOXLDirexion Daily Semiconductor Bull 3X ETF11.72
KORUDirexion Daily South Korea Bull 3X Shares10.51
AMUUDirexion Daily AMD Bull 2X Shares7.43
AMDLGraniteShares 2x Long AMD Daily ETF7.39
AMDGLeverage Shares 2X Long AMD Daily ETF7.29
MVLLGraniteShares 2x Long MRVL Daily ETF5.60
DLLLGraniteShares 2x Long DELL Daily ETF5.48
GGLLDirexion Daily GOOGL Bull 2X Shares4.57
LABUDirexion Daily S&P Biotech Bull 3x Shares4.01

S&P 500 Index

How to choose period

Historical Sharpe Ratio

The chart shows LABU's rolling Sharpe ratio over time compared to your chosen benchmark. Rising trends indicate improving returns relative to total volatility, while declining trends may signal deteriorating risk-adjusted performance or increased volatility. Use multiple timeframes to distinguish short-term fluctuations from long-term patterns.

Identify market cycles by observing when LABU consistently outperforms (line above benchmark), underperforms (below benchmark), or aligns with the benchmark.

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Sharpe Ratio Calculator

How does LABU fit in your portfolio?

Add your other holdings to see your portfolio's Sharpe Ratio and find out.

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