Direxion Daily S&P Biotech Bear 1X ETF (LABS) Stock Analysis
DELISTED 2018
What happened to Direxion Daily S&P Biotech Bear 1X ETF (LABS) stock?
Direxion Daily S&P Biotech Bear 1X ETF (LABS) no longer trades on public markets. It was delisted in October 2018. The figures below are historical and are not a current quote.
For informational purposes only. Not financial advice. Analysis by Sedat ANAK, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
Direxion Daily S&P Biotech Bear 1X ETF (LABS) trades at $25.69. The Direxion Daily S&P Biotech Bear 1X ETF (LABS) seeks daily investment results, before fees and expenses, of 100% of the inverse (or opposite) of the… Sector: Financial services.
Last analyzed: Mar 16, 2026Analyst Coverage for LABS: LABS does not currently have published analyst price targets in our coverage universe. This is common for smaller-cap names with limited Wall Street coverage. In the absence of analyst consensus, our AI model evaluates LABS against Financial Services peers across nine fundamental dimensions and assigns a neutral fundamental signal based on the underlying data.
Direxion Daily S&P Biotech Bear 1X ETF (LABS) Financial Services Profile
Direxion Daily S&P Biotech Bear 1X ETF (LABS) offers inverse exposure to the S&P Biotechnology Select Industry Index, targeting investors seeking to profit from or hedge against potential downturns in the biotechnology sector. As an asset management product, it provides a tactical tool for managing risk and capitalizing on market volatility.
What Is the Investment Thesis for LABS?
LABS presents a tactical investment option for those anticipating a decline in the biotechnology sector. The ETF's value is directly tied to the inverse performance of the S&P Biotechnology Select Industry Index, making it a tool for hedging or speculation. Key considerations include the potential for rapid gains if the biotechnology sector underperforms, offset by the risk of losses if the sector rises. The daily reset feature means that long-term performance may not accurately reflect the inverse of the index's cumulative return. Investors should carefully monitor the biotechnology sector's trends, regulatory changes, and overall market sentiment to effectively utilize LABS. The ETF's expense ratio and trading costs should also be factored into any investment decision. Given its leveraged nature, LABS is best suited for sophisticated investors with a high-risk tolerance and a short-term investment horizon.
Based on FMP financials and quantitative analysis
LABS Key Highlights
LABS provides 1x inverse exposure to the S&P Biotechnology Select Industry Index, allowing investors to profit from potential declines in the biotech sector.
- The ETF resets daily, which can lead to performance that deviates from the simple inverse of the index over longer time periods due to compounding effects.
- LABS offers a liquid and accessible way for investors to express a bearish view on the biotechnology industry without directly shorting individual stocks.
- The ETF's performance is highly sensitive to the daily movements of the S&P Biotechnology Select Industry Index, making it a tactical tool for short-term trading.
- LABS is managed by Direxion, a well-known provider of leveraged and inverse ETFs, providing investors with access to specialized investment strategies.
Who Are LABS's Competitors?
LABS is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.
| Company | Price | Change | Market Cap | AI Score |
|---|---|---|---|---|
| XBI State Street SPDR S&P Biotech ETF | $163.79 | -3.40% | $8.56B | 47 |
| IBB iShares Biotechnology ETF | $210.83 | -2.83% | $10.4B | 47 |
| ABALX American Funds American Balanced Fund Class A | $41.00 | +0.37% | $292B | 72 |
| BX Blackstone Inc. | $141.41 | -2.54% | $171B | 81 |
| AMFCX American Funds American Mutual Fund | $63.80 | -0.72% | $77.4B | 71 |
| RNNEX American Funds The New Economy Fund Class R-2E | $80.46 | -0.29% | $52.9B | 91 |
| AMP Ameriprise Financial, Inc. | $554.06 | -1.02% | $49.8B | 70 |
| IDDTF AB Industrivärden (publ) | $54.65 | -0.36% | $23.6B | 70 |
AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance
What Are LABS's Key Strengths?
Provides a straightforward way to profit from declines in the biotechnology sector.
- Offers a hedging tool for investors with long positions in biotech stocks.
- High liquidity and accessibility on major exchanges.
- Managed by Direxion, a reputable provider of leveraged and inverse ETFs.
What Are LABS's Weaknesses?
Daily reset feature can lead to performance that deviates significantly from the inverse of the index over longer periods.
- Susceptible to the effects of compounding, which can erode returns in volatile markets.
- High expense ratio compared to traditional ETFs.
- Not suitable for long-term investment strategies.
What Could Drive LABS Stock Higher?
Clinical trial results for major biotechnology companies can significantly impact the sector's performance.
- Regulatory decisions regarding drug approvals and pricing policies can create volatility in biotech stocks.
- Macroeconomic factors, such as interest rate changes and inflation, can influence investor sentiment towards growth stocks like those in the biotech sector.
- Geopolitical events and trade tensions can create uncertainty and affect global markets, including the biotechnology industry.
What Are the Key Risks for LABS?
Insider selling — insiders were net sellers of roughly $1.9M recently.
- A sustained bull market in the biotechnology sector would negatively impact LABS' performance.
- Changes in regulations affecting leveraged and inverse ETFs could limit the fund's investment strategies.
- The daily reset feature can lead to performance that deviates significantly from the inverse of the index over longer periods.
- The ETF's high expense ratio can erode returns, especially in sideways or volatile markets.
What Are the Growth Opportunities for LABS?
- Increased Market Volatility: Periods of heightened volatility in the biotechnology sector can drive increased trading volume and investor interest in LABS. As uncertainty surrounding clinical trial outcomes, regulatory decisions, and market sentiment rises, investors may seek to hedge their existing biotech holdings or speculate on potential downturns using LABS. This increased demand can lead to higher trading volumes and potentially improved liquidity for the ETF. Monitoring the VIX index and biotech-specific volatility measures can provide insights into this growth opportunity. The timeline is event-driven and dependent on market conditions.
- Rising Interest Rates and Inflation Concerns: Concerns about rising interest rates and inflation can negatively impact growth stocks, including those in the biotechnology sector. As investors become more risk-averse, they may rotate out of high-growth areas like biotech and into more defensive sectors. LABS can benefit from this trend as investors seek to profit from or hedge against potential declines in biotech stock prices. Tracking macroeconomic indicators and investor sentiment surveys can help gauge the potential impact of this growth driver. This is an Ongoing catalyst.
- Regulatory Scrutiny and Policy Changes: Increased regulatory scrutiny of the biotechnology and pharmaceutical industries can create uncertainty and downward pressure on stock prices. Policy changes related to drug pricing, patent protection, and clinical trial requirements can significantly impact the profitability and growth prospects of biotech companies. LABS can serve as a tool for investors to hedge against or profit from these regulatory risks. Monitoring regulatory announcements and policy debates is crucial for assessing this growth opportunity. The timeline is event-driven and dependent on policy developments.
- Clinical Trial Failures and Setbacks: Negative news regarding clinical trial failures or setbacks for major biotechnology companies can trigger significant sell-offs in the sector. LABS can provide a way for investors to capitalize on these events by betting against the biotechnology industry. Monitoring clinical trial results and industry news is essential for identifying potential opportunities. The timeline is event-driven and dependent on clinical trial outcomes.
- Geopolitical Risks and Trade Tensions: Geopolitical risks and trade tensions can create uncertainty and volatility in global markets, including the biotechnology sector. Concerns about supply chain disruptions, intellectual property protection, and international collaborations can negatively impact biotech companies. LABS can be used as a hedging tool to mitigate these risks. Monitoring geopolitical events and trade negotiations is important for assessing this growth opportunity. The timeline is event-driven and dependent on geopolitical developments.
What Are LABS's Competitive Advantages?
- Specialized inverse ETF product offering focused on the biotechnology sector.
- Established brand recognition and distribution network through Direxion.
- Liquidity and accessibility on major exchanges.
- Daily reset mechanism provides a unique tactical advantage for short-term traders.
What Does LABS Do?
The Direxion Daily S&P Biotech Bear 1X ETF (LABS) is designed to deliver daily investment results, before fees and expenses, that correspond to 100% of the inverse (or opposite) of the daily performance of the S&P Biotechnology Select Industry Index. This index represents a specific segment of the broader market, focusing on U.S. biotechnology companies. LABS provides a mechanism for investors to express a short-term bearish view on the biotechnology sector without directly shorting individual stocks or employing more complex derivative strategies. The fund resets daily, meaning its performance over periods longer than one day can differ significantly from the inverse of the index's cumulative performance due to the effects of compounding. LABS is managed by Direxion, a firm specializing in leveraged and inverse ETFs. These types of ETFs are typically used for tactical, short-term trading strategies rather than long-term investment holdings. The ETF's value proposition lies in its ability to provide a relatively straightforward and liquid way to bet against the biotechnology industry.
What Products and Services Does LABS Offer?
- Provides inverse exposure to the S&P Biotechnology Select Industry Index.
- Offers a way for investors to profit from declines in the biotechnology sector.
- Serves as a hedging tool against potential losses in biotech investments.
- Resets daily, targeting short-term investment results.
- Trades on major exchanges, providing liquidity and accessibility.
- Allows investors to express bearish views on biotech without shorting individual stocks.
How Does LABS Make Money?
- Generates revenue through management fees charged as a percentage of assets under management (AUM).
- Aims to track the inverse daily performance of the S&P Biotechnology Select Industry Index.
- Utilizes derivatives and other financial instruments to achieve its investment objective.
- Trades actively to rebalance its portfolio and maintain its target exposure.
What Industry Does LABS Operate In?
The asset management industry is characterized by a diverse range of investment products, including ETFs, mutual funds, and hedge funds. LABS operates within the ETF segment, specifically focusing on inverse and leveraged strategies. The biotechnology sector, which LABS targets, is known for its volatility and sensitivity to factors such as clinical trial results, regulatory approvals, and patent expirations. The competitive landscape includes other inverse and leveraged ETFs that target various sectors and indices. Market trends such as increasing investor interest in tactical trading and hedging strategies drive demand for products like LABS.
Who Are LABS's Key Customers?
- Retail investors seeking to profit from short-term declines in the biotech sector.
- Institutional investors using LABS as a hedging tool.
- Day traders and active traders looking for leveraged exposure to biotech stocks.
- Financial advisors incorporating LABS into client portfolios for tactical asset allocation.
Key Financial Metrics
Return on equity for Direxion Daily S&P Biotech Bear 1X ETF stands at 0.0%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 0.0%, showing how much profit it generates from its asset base. LABS trades at a trailing price-to-earnings ratio of 0.00, below the Financial Services sector average of ~18x. Its free cash flow yield is 0.0%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.00 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is 0.0%, the inverse of the P/E and a quick read on earnings relative to price.
Insider Activity
The most recent 12 insider filings for Direxion Daily S&P Biotech Bear 1X ETF break down as 11 sales and 1 purchases. On net that is roughly 45K shares disposed (about $1.9M), a signal worth weighing alongside the fundamentals.
LABS Financials
Bull Case vs Bear Case
Bull Case
- Recent insider activity, if any, could signal confidence in the fund's strategy to capitalize on potential biotech sector downturns. A bearish market perception of the biotech industry, fueled by concerns over drug pricing or regulatory hurdles, may increase demand for this inverse ETF. Strong bearish sentiment within the trading community regarding the biotech sector could drive short-term gains for LABS. Market developments indicating a potential correction or slowdown in the biotech sector could make LABS an attractive hedge or speculative investment.
Bear Case
- Lack of significant insider activity might indicate a neutral outlook on the fund's short-term prospects. Prevailing bullish sentiment in the broader market or specifically towards the biotech sector could limit the upside potential of LABS. Positive market perception of the biotech industry, driven by innovation or positive clinical trial results, could reduce demand for this inverse ETF. Market developments suggesting a rebound or continued growth in the biotech sector could lead to losses for LABS.
AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · March 2026
LABS Latest News
No recent news available for LABS.
LABS Financial Services Stock FAQ
What happened to Direxion Daily S&P Biotech Bear 1X ETF (LABS) stock?
Direxion Daily S&P Biotech Bear 1X ETF (LABS) no longer trades on public markets. It was delisted in October 2018. The figures below are historical and are not a current quote.
Can I still buy LABS shares?
No. LABS stopped trading on public markets in October 2018, so the shares are not available through a broker. Anything you see quoted for LABS elsewhere is historical data, not a live market.
Are the figures on this page current?
No. Every number here is the last value recorded before LABS stopped trading. Nothing on this page updates, and none of it is a current quote.
Why does this page still exist?
Because people still search for what happened to Direxion Daily S&P Biotech Bear 1X ETF. An archived profile that states the delisting plainly is more useful than a dead link — provided it is labelled as history, which is what this page does.
What does Direxion Daily S&P Biotech Bear 1X ETF do?
The Direxion Daily S&P Biotech Bear 1X ETF (LABS) is designed to deliver daily investment results, before fees and expenses, that correspond to 100% of the inverse (or opposite) of the daily performance of the S&P Biotechnology Select Industry Index. This means that the ETF aims to profit when the biotechnology sector, as represented by the index, declines in value.
What do analysts say about LABS stock?
As an inverse ETF, LABS is not typically subject to traditional analyst ratings in the same way as individual stocks. Its performance is directly tied to the inverse performance of the S&P Biotechnology Select Industry Index. Analysts who cover the biotechnology sector may provide insights on the overall outlook for the industry, which can inform investment decisions related to LABS.
What are the main risks for LABS?
The main risks for LABS include the potential for losses if the biotechnology sector rises in value, as the ETF is designed to perform inversely to the S&P Biotechnology Select Industry Index. The daily reset feature can lead to performance that deviates significantly from the inverse of the index over longer periods, especially in volatile markets.
How does Direxion Daily S&P Biotech Bear 1X ETF make money in financial services?
Direxion Daily S&P Biotech Bear 1X ETF generates revenue primarily through management fees, which are charged as a percentage of the fund's average daily net assets. These fees compensate Direxion for managing the fund, including the costs associated with research, trading, and administration. The ETF does not generate revenue through interest income or lending securities.
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- The analysis is based on publicly available information and may be subject to change.
- The ETF's performance is highly dependent on the performance of the S&P Biotechnology Select Industry Index.
- Leveraged and inverse ETFs are not suitable for all investors and should be used with caution.