VOO vs. LABU

Last updated Jun 25, 2026

VOO (Vanguard S&P 500 ETF) and LABU (Direxion Daily S&P Biotech Bull 3x Shares) are both exchange-traded funds - VOO is a S&P 500 fund tracking the S&P 500 Index, while LABU is a Leveraged Equities fund tracking the S&P Biotechnology Select Industry Index (300%). Both are passively managed. Over the past 10 years, VOO returned 15.60%/yr vs -6.68%/yr for LABU. A 0.57 correlation means they provide meaningful diversification when combined. VOO charges 0.03%/yr vs 1.12%/yr for LABU.

Performance

VOO vs. LABU - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard S&P 500 ETF (VOO) and Direxion Daily S&P Biotech Bull 3x Shares (LABU). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VOO achieves a 8.08% return, which is significantly lower than LABU's 55.62% return. Over the past 10 years, VOO has outperformed LABU with an annualized return of 15.60%, while LABU has yielded a comparatively lower -6.68% annualized return.

VOO

• 1D: -0.10%
• 1M: -1.44%
• YTD: 8.08%
• 6M: 6.78%
• 1Y: 22.23%
• 3Y*: 20.75%
• 5Y*: 13.02%
• 10Y*: 15.60%

LABU

• 1D: 5.45%
• 1M: 41.58%
• YTD: 55.62%
• 6M: 39.78%
• 1Y: 324.09%
• 3Y*: 25.57%
• 5Y*: -30.67%
• 10Y*: -6.68%

*Multi-year figures are annualized to reflect compound growth (CAGR)

VOO vs. LABU - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VOO Vanguard S&P 500 ETF	8.08%	17.82%	24.98%	26.32%	-18.17%	28.79%	18.32%	31.37%	-4.50%	21.77%
LABU Direxion Daily S&P Biotech Bull 3x Shares	55.62%	79.17%	-26.02%	-13.41%	-80.36%	-64.15%	74.66%	75.50%	-57.61%	149.12%

Correlation

The correlation between VOO and LABU is 0.49, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.49
Correlation (3Y) Calculated over the trailing 3-year period	0.54
Correlation (5Y) Calculated over the trailing 5-year period	0.56
Correlation (10Y) Calculated over the trailing 10-year period	0.57
Correlation (All Time) Calculated using the full available price history since May 28, 2015	0.57

The correlation between VOO and LABU has been stable across timeframes, ranging from 0.49 to 0.57 - a consistent structural relationship.

VOO vs. LABU - Sectors Allocation Comparison

Sectors	VOO	LABU
Technology	39.1%	-
Financial Services	10.9%	0.3%
Communication Services	10.5%	-
Consumer Cyclical	9.8%	-
Healthcare	8.3%	99.7%
Industrials	7.6%	-
Consumer Defensive	4.5%	-
Energy	3.2%	-
Utilities	2.5%	-
Real Estate	1.8%	-
Basic Materials	1.7%	0.0%

Return for Risk

VOO vs. LABU — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

VOO

VOO Risk / Return Rank: 60
VOO Sharpe Ratio Rank: 59
VOO Sortino Ratio Rank: 57
VOO Omega Ratio Rank: 59
VOO Calmar Ratio Rank: 57
VOO Martin Ratio Rank: 68

LABU

LABU Risk / Return Rank: 92
LABU Sharpe Ratio Rank: 97
LABU Sortino Ratio Rank: 89
LABU Omega Ratio Rank: 82
LABU Calmar Ratio Rank: 98
LABU Martin Ratio Rank: 96

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

VOO vs. LABU - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard S&P 500 ETF (VOO) and Direxion Daily S&P Biotech Bull 3x Shares (LABU). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	VOO	LABU	Difference
Sharpe ratio: Return per unit of total volatility	1.80	4.15	-2.34
Sortino ratio: Return per unit of downside risk	2.46	3.66	-1.20
Omega ratio: Gain probability vs. loss probability	1.33	1.44	-0.11
Calmar ratio: Return relative to maximum drawdown	2.51	10.64	-8.13
Martin ratio: Return relative to average drawdown	11.16	29.88	-18.72

VOO vs. LABU - Sharpe Ratio Comparison

The current VOO Sharpe Ratio is 1.80, which is lower than the LABU Sharpe Ratio of 4.15. The chart below compares the historical Sharpe Ratios of VOO and LABU, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

VOO vs. LABU - Drawdown Comparison

The maximum VOO drawdown since its inception was -33.99%, smaller than the maximum LABU drawdown of -99.18%. Use the drawdown chart below to compare losses from any high point for VOO and LABU.

Drawdown Indicators

	VOO	LABU	Difference
Max Drawdown Largest peak-to-trough decline	-33.99%	-99.18%	+65.19%
Max Drawdown (1Y) Largest decline over 1 year	-8.90%	-30.70%	+21.80%
Max Drawdown (3Y) Largest decline over 3 years	-18.69%	-78.30%	+59.61%
Max Drawdown (5Y) Largest decline over 5 years	-24.52%	-97.59%	+73.07%
Max Drawdown (10Y) Largest decline over 10 years	-33.99%	-98.96%	+64.97%
Current Drawdown Current decline from peak	-3.23%	-94.52%	+91.29%
Average Drawdown Average peak-to-trough decline	-3.68%	-81.72%	+78.04%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.00%	10.91%	-8.91%

Volatility

VOO vs. LABU - Volatility Comparison

The current volatility for Vanguard S&P 500 ETF (VOO) is 4.80%, while Direxion Daily S&P Biotech Bull 3x Shares (LABU) has a volatility of 29.74%. This indicates that VOO experiences smaller price fluctuations and is considered to be less risky than LABU based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VOO	LABU	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.80%	29.74%	-24.94%
Volatility (6M) Calculated over the trailing 6-month period	9.79%	62.78%	-52.99%
Volatility (1Y) Calculated over the trailing 1-year period	12.43%	78.92%	-66.49%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.91%	95.93%	-79.02%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.02%	95.44%	-77.42%

VOO vs. LABU - Expense Ratio Comparison

VOO has a 0.03% expense ratio, which is lower than LABU's 1.12% expense ratio.

Dividends

VOO vs. LABU - Dividend Comparison

VOO's dividend yield for the trailing twelve months is around 1.05%, more than LABU's 0.41% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
LABU Direxion Daily S&P Biotech Bull 3x Shares	0.41%	0.84%	0.35%	0.35%	0.00%	0.00%	0.00%	0.28%	0.64%	0.17%	0.00%	0.00%
VOO Vanguard S&P 500 ETF	1.05%	1.13%	1.24%	1.46%	1.69%	1.25%	1.54%	1.88%	2.06%	1.78%	2.02%	2.10%

Frequently Asked Questions

Can I hold both VOO and LABU in my portfolio?

VOO and LABU have a correlation of 0.49, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VOO or LABU?

LABU has higher volatility (29.74%) compared to VOO (4.80%). In terms of maximum drawdown, VOO dropped -33.99% vs LABU's -99.18%.

Which ETF is better, VOO or LABU?

On 10-year performance, VOO leads with 15.60% vs -6.68% for LABU. On fees, VOO is cheaper at 0.03% per year. On volatility, VOO has been the lower-risk option at 4.80%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VOO or LABU?

Over the 10-year period, VOO has performed better with a 15.60% return vs -6.68%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VOO or LABU?

VOO is cheaper with a 0.03% expense ratio, compared with 1.12% for LABU.

Which ETF pays a higher dividend yield, VOO or LABU?

VOO has the higher dividend yield at 1.05%, compared with 0.41% for LABU.

What is the main difference between VOO and LABU?

VOO is categorized as S&P 500, while LABU is Leveraged Equities. VOO tracks S&P 500 Index, while LABU tracks S&P Biotechnology Select Industry Index (300%). They also come from different issuers: Vanguard and Direxion. Their fees differ too: 0.03% for VOO and 1.12% for LABU.

Which has better risk-adjusted returns?

LABU currently has the higher Sharpe Ratio (4.15 vs 1.80), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.