XBI vs. LABU
Compare and contrast key facts about SPDR S&P Biotech ETF (XBI) and Direxion Daily S&P Biotech Bull 3x Shares (LABU).
XBI and LABU are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. XBI is a passively managed fund by State Street that tracks the performance of the S&P Biotechnology Select Industry Index. It was launched on Feb 6, 2006. LABU is a passively managed fund by Direxion that tracks the performance of the S&P Biotechnology Select Industry Index (300%). It was launched on May 28, 2015. Both XBI and LABU are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: XBI or LABU.
Key characteristics
| XBI | LABU | |
|---|---|---|
| YTD Return | 0.77% | -10.53% |
| 1Y Return | 7.17% | -14.01% |
| 3Y Return (Ann) | -11.51% | -56.61% |
| 5Y Return (Ann) | 0.91% | -35.85% |
| Sharpe Ratio | 0.29 | -0.14 |
| Daily Std Dev | 27.90% | 82.72% |
| Max Drawdown | -63.89% | -98.92% |
| Current Drawdown | -48.26% | -97.62% |
Correlation
The correlation between XBI and LABU is 1.00, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
XBI vs. LABU - Performance Comparison
In the year-to-date period, XBI achieves a 0.77% return, which is significantly higher than LABU's -10.53% return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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XBI vs. LABU - Expense Ratio Comparison
XBI has a 0.35% expense ratio, which is lower than LABU's 1.12% expense ratio.
Risk-Adjusted Performance
XBI vs. LABU - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for SPDR S&P Biotech ETF (XBI) 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.
Dividends
XBI vs. LABU - Dividend Comparison
XBI's dividend yield for the trailing twelve months is around 0.02%, less than LABU's 0.54% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
XBI SPDR S&P Biotech ETF | 0.02% | 0.02% | 0.00% | 0.04% | 0.20% | 0.00% | 0.28% | 0.24% | 0.26% | 0.61% | 1.07% | 0.17% |
LABU Direxion Daily S&P Biotech Bull 3x Shares | 0.54% | 0.35% | 0.00% | 0.00% | 0.00% | 0.28% | 0.64% | 0.17% | 0.00% | 0.00% | 0.00% | 0.00% |
Drawdowns
XBI vs. LABU - Drawdown Comparison
The maximum XBI drawdown since its inception was -63.89%, smaller than the maximum LABU drawdown of -98.92%. Use the drawdown chart below to compare losses from any high point for XBI and LABU. For additional features, visit the drawdowns tool.
Volatility
XBI vs. LABU - Volatility Comparison
The current volatility for SPDR S&P Biotech ETF (XBI) is 7.97%, while Direxion Daily S&P Biotech Bull 3x Shares (LABU) has a volatility of 24.46%. This indicates that XBI 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.