LABU vs SPY
Direxion Daily S&P Biotech Bull 3X ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. LABU delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.
Side-by-Side Comparison
| Metric | LABU | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.96% | 0.09% | |
| AUM | $533M | $789.1B | |
| Dividend Yield | 0.35% | 1.01% | |
| Holdings | 160 | 505 | |
| YTD Return | +77.79% | +13.75% | |
| 1Y Return | +370.46% | +22.91% | |
| 3Y Return (annualized) | +40.84% | +21.67% | |
| 5Y Return (annualized) | -24.58% | +13.32% | |
| Volatility (annualized) | 85.2% | 15.3% | |
| Max Drawdown | -99.2% | -56.5% | |
| Fund Family | Direxion Shares ETF Trust | State Street Investment Management | |
| Category | Alternative | Equity | |
| Inception | May 28, 2015 | Jan 22, 1993 |
LABU vs SPY Performance
Direxion Daily S&P Biotech Bull 3X ETF (LABU) is a ETF from Direxion Shares ETF Trust and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year LABU returned +370.46% while SPY returned +22.91%. Year to date, LABU is up 77.79% versus a gain of 13.75% for SPY.
Over three years, LABU compounded at +40.84% per year against +21.67% for SPY; over five years the annualized figures are -24.58% and +13.32% respectively. Across the full 11-year window we track, SPY has the edge at +8.85% annualized vs -19.18%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
LABU has been the more volatile fund, with annualized monthly volatility of 85.2% compared with 15.3% for SPY. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -99.2% for LABU and -56.5% for SPY. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.58. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
LABU charges 0.96% per year while SPY charges 0.09%. On a $10,000 position that is $96 vs $9 annually, a gap of $87 per year that compounds over a long holding period. On income, LABU currently yields 0.35% against 1.01% for SPY.
Holdings Overlap
LABU and SPY share 8 holdings out of 649 unique holdings combined, representing a 1.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, LABU or SPY?
LABU has an expense ratio of 0.96% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $87 per year of difference.
Which performed better, LABU or SPY?
Over the past year LABU returned +370.46% vs +22.91% for SPY, so LABU leads on 1-year performance. Over the longest common window we track (11 years), LABU annualized -19.18% vs +8.85% for SPY. Past performance does not guarantee future results.
Which is riskier, LABU or SPY?
LABU has been the more volatile fund at 85.2% annualized versus 15.3% for SPY. Worst drawdown: LABU -99.2% vs SPY -56.5%.
Should I hold both LABU and SPY?
LABU and SPY have a monthly-return correlation of 0.58, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between LABU and SPY?
LABU and SPY share 8 common holdings with a 1.4% weight overlap. Combined, they hold 649 unique securities.
Which pays a higher dividend, LABU or SPY?
LABU yields 0.35% while SPY yields 1.01%, so SPY currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.