XBI vs. LABU

Last updated Jun 23, 2026

XBI (SPDR S&P Biotech ETF) and LABU (Direxion Daily S&P Biotech Bull 3x Shares) are both exchange-traded funds - XBI is a Health & Biotech Equities fund tracking the S&P Biotechnology Select Industry 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, XBI returned 11.06%/yr vs -7.38%/yr for LABU. With a 1.00 correlation, they move nearly in lockstep. XBI charges 0.35%/yr vs 1.12%/yr for LABU.

Performance

XBI vs. LABU - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in SPDR S&P Biotech ETF (XBI) 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, XBI achieves a 19.74% return, which is significantly lower than LABU's 44.31% return. Over the past 10 years, XBI has outperformed LABU with an annualized return of 11.06%, while LABU has yielded a comparatively lower -7.38% annualized return.

XBI

• 1D: 3.75%
• 1M: 10.89%
• YTD: 19.74%
• 6M: 15.96%
• 1Y: 77.88%
• 3Y*: 19.92%
• 5Y*: 1.79%
• 10Y*: 11.06%

LABU

• 1D: 11.19%
• 1M: 31.29%
• YTD: 44.31%
• 6M: 30.68%
• 1Y: 313.64%
• 3Y*: 22.45%
• 5Y*: -30.40%
• 10Y*: -7.38%

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

XBI vs. LABU - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
XBI SPDR S&P Biotech ETF	19.74%	35.89%	1.01%	7.60%	-25.87%	-20.45%	48.33%	32.56%	-15.28%	43.77%
LABU Direxion Daily S&P Biotech Bull 3x Shares	44.31%	79.17%	-26.02%	-13.41%	-80.36%	-64.15%	74.66%	75.50%	-57.61%	149.12%

Correlation

The correlation between XBI and LABU is 1.00 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	1.00
Correlation (3Y) Calculated over the trailing 3-year period	1.00
Correlation (5Y) Calculated over the trailing 5-year period	1.00
Correlation (10Y) Calculated over the trailing 10-year period	1.00
Correlation (All Time) Calculated using the full available price history since May 28, 2015	1.00

The correlation between XBI and LABU has been stable across timeframes, ranging from 1.00 to 1.00 - a consistent structural relationship.

XBI vs. LABU - Sectors Allocation Comparison

Sectors	XBI	LABU
Healthcare	99.7%	99.7%
Financial Services	0.3%	0.3%
Basic Materials	0.2%	0.0%
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	-
Industrials	-	-
Real Estate	-	-
Technology	-	-
Utilities	-	-

Return for Risk

XBI vs. LABU — Risk / Return Rank

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

XBI

XBI Risk / Return Rank: 90
XBI Sharpe Ratio Rank: 91
XBI Sortino Ratio Rank: 88
XBI Omega Ratio Rank: 81
XBI Calmar Ratio Rank: 96
XBI Martin Ratio Rank: 93

LABU

LABU Risk / Return Rank: 90
LABU Sharpe Ratio Rank: 96
LABU Sortino Ratio Rank: 85
LABU Omega Ratio Rank: 76
LABU Calmar Ratio Rank: 97
LABU Martin Ratio Rank: 95

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.

XBI vs. LABU - Risk-Adjusted Trends 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.

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.

	XBI	LABU	Difference
Sharpe ratio: Return per unit of total volatility	2.96	4.01	-1.05
Sortino ratio: Return per unit of downside risk	3.83	3.61	+0.22
Omega ratio: Gain probability vs. loss probability	1.46	1.43	+0.03
Calmar ratio: Return relative to maximum drawdown	8.05	10.29	-2.24
Martin ratio: Return relative to average drawdown	23.79	28.91	-5.12

XBI vs. LABU - Sharpe Ratio Comparison

The current XBI Sharpe Ratio is 2.96, which is comparable to the LABU Sharpe Ratio of 4.01. The chart below compares the historical Sharpe Ratios of XBI 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

XBI vs. LABU - Drawdown Comparison

The maximum XBI drawdown since its inception was -63.89%, smaller than the maximum LABU drawdown of -99.18%. Use the drawdown chart below to compare losses from any high point for XBI and LABU.

Drawdown Indicators

	XBI	LABU	Difference
Max Drawdown Largest peak-to-trough decline	-63.89%	-99.18%	+35.29%
Max Drawdown (1Y) Largest decline over 1 year	-9.72%	-30.70%	+20.98%
Max Drawdown (3Y) Largest decline over 3 years	-32.99%	-78.30%	+45.31%
Max Drawdown (5Y) Largest decline over 5 years	-54.71%	-97.59%	+42.88%
Max Drawdown (10Y) Largest decline over 10 years	-63.89%	-98.96%	+35.07%
Current Drawdown Current decline from peak	-15.61%	-94.92%	+79.31%
Average Drawdown Average peak-to-trough decline	-20.93%	-81.71%	+60.78%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.28%	10.91%	-7.63%

Volatility

XBI vs. LABU - Volatility Comparison

The current volatility for SPDR S&P Biotech ETF (XBI) is 9.97%, while Direxion Daily S&P Biotech Bull 3x Shares (LABU) has a volatility of 29.77%. 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.

Volatility by Period

	XBI	LABU	Difference
Volatility (1M) Calculated over the trailing 1-month period	9.97%	29.77%	-19.80%
Volatility (6M) Calculated over the trailing 6-month period	21.32%	63.11%	-41.79%
Volatility (1Y) Calculated over the trailing 1-year period	26.52%	78.92%	-52.40%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	32.30%	95.94%	-63.64%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	32.04%	95.55%	-63.51%

XBI vs. LABU - Expense Ratio Comparison

XBI has a 0.35% expense ratio, which is lower than LABU's 1.12% expense ratio.

Dividends

XBI vs. LABU - Dividend Comparison

XBI's dividend yield for the trailing twelve months is around 0.40%, less than LABU's 0.54% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
LABU Direxion Daily S&P Biotech Bull 3x Shares	0.54%	0.84%	0.35%	0.35%	0.00%	0.00%	0.00%	0.28%	0.64%	0.17%	0.00%	0.00%
XBI SPDR S&P Biotech ETF	0.40%	0.37%	0.15%	0.02%	0.00%	0.04%	0.20%	0.00%	0.28%	0.24%	0.26%	0.61%

Frequently Asked Questions

Can I hold both XBI and LABU in my portfolio?

With a correlation of 1.00, XBI and LABU move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, XBI or LABU?

LABU has higher volatility (29.77%) compared to XBI (9.97%). In terms of maximum drawdown, XBI dropped -63.89% vs LABU's -99.18%.

Which ETF is better, XBI or LABU?

On 10-year performance, XBI leads with 11.06% vs -7.38% for LABU. On fees, XBI is cheaper at 0.35% per year. On volatility, XBI has been the lower-risk option at 9.97%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XBI or LABU?

Over the 10-year period, XBI has performed better with a 11.06% return vs -7.38%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XBI or LABU?

XBI is cheaper with a 0.35% expense ratio, compared with 1.12% for LABU.

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

LABU has the higher dividend yield at 0.54%, compared with 0.40% for XBI.

What is the main difference between XBI and LABU?

XBI is categorized as Health & Biotech Equities, while LABU is Leveraged Equities. XBI tracks S&P Biotechnology Select Industry Index, while LABU tracks S&P Biotechnology Select Industry Index (300%). They also come from different issuers: State Street and Direxion. Their fees differ too: 0.35% for XBI and 1.12% for LABU.

Which has better risk-adjusted returns?

LABU currently has the higher Sharpe Ratio (4.01 vs 2.96), 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.