Direxion Investments, begun trading 2 new ETFs: the Direxion Daily S&P Biotech Bull 3x Shares (NYSE Arca: LABU) and the Direxion Daily S&P Biotech Bear 3x Shares (NYSE Arca: LABD) on Thursday, May 28, 2015.
Here is a synopsis of the new ETFs:
|Symbol: LABU||Exchange: NYSE Arca|
|Name: Direxion Daily S&P Biotech Bull 3x Shares||Net Expense Ratio: 0.95%|
The Direxion Daily S&P Biotech Bull 3x Shares seeks daily investment results, before fees and expenses, of 300% of the performance of the S&P Biotechnology Select Industry Index.
|Symbol: LABD||Exchange: NYSE Arca|
|Name: Direxion Daily S&P Biotech Bear 3x Shares||Net Expense Ratio: 0.95%|
The Direxion Daily S&P Biotech Bear 3x Shares seeks daily investment results, before fees and expenses, of 300% of the inverse (or opposite) of the performance of the S&P Biotechnology Select Industry Index.
The S&P Biotechnology Select Industry Index is provided by Standard & Poor’s and includes domestic companies from the biotechnology industry.
The Index is designed to measure the performance of a sub-industry or group of sub-industries determined based on the Global Industry Classification Standards (GICS). Companies in the Index are classified using the GICS classifications which are determined primarily based on a company’s revenues, however, earnings and market perception are also considered by GICS.
The Index consists of constituents of the S&P Total Market Index (S&P TMI) that belong to the GICS biotechnology sub-industry that satisfy the following criteria:
(1) have a float-adjusted market capitalization above $500 million with a float-adjusted liquidity ratio (defined by dollar value traded over the previous 12 months divided by the float-adjusted market capitalization as of the Index rebalancing reference date) above 90% or have a float-adjusted market capitalization above $400 million with a float-adjusted liquidity ratio above 150%, and
(2) are U.S. based companies. The market capitalization threshold may be relaxed to ensure that there are at least 22 stocks in the Index as of the rebalancing effective date.
Rebalancing is done quarterly. The S&P TMI tracks all U.S. common stocks listed on the New York Stock Exchange (including the NYSE Arca, Inc. and NYSE Amex), the NASDAQ Global Select Market, the NASDAQ Select Market and the NASDAQ Capital Market.
As of April 30, 2015, the Index was comprised of 98 stocks. The companies included in the Index have a median market capitalization of $1.51 billion and are concentrated in the healthcare sector which is the GICS sector the biotechnology industry is included in as of April 30, 2015.
Index Top Ten Holdings (05/28/15):
|Esperion Therapeutics Inc||1.44%|
|Auspex Pharmaceuticals Inc||1.44%|
|Momenta Pharmaceuticals Inc||1.32%|
|Inovio Pharmaceuticals Inc||1.31%|
|Prothena Corp PLC||1.27%|
|Bluebird Bio Inc||1.25%|
|Amicus Therapeutics Inc||1.22%|
|Regeneron Pharmaceuticals Inc||1.20%|
Index Sector Weightings (05/28/15):
LABU, LABD Home Page
See all US Biotechnology ETFs here.