LABU vs SPY

LABU vs SPY

Which is better, LABU or SPY?

Multi Alternative against Large Cap Blend.

SPY has a lower expense ratio. LABU led over 1Y and 3Y, SPY over 5Y and the full window. LABU is less concentrated, with 32.6% of the fund in its ten largest positions against 38.2%.

Lower Fees: SPYHigher Returns: splitLess Concentrated: LABU

MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.

Side-by-Side Comparison

MetricLABUSPY
Expense Ratio0.93%0.09%Best
AUM$562M$823.2B
Dividend Yield0.34%0.99%
Holdings3251,515
YTD Return+33.35%Best+13.53%
1Y Return+96.63%Best+17.47%
3Y Return (annualized)+47.83%Best+22.36%
5Y Return (annualized)-28.40%+13.21%Best
Volatility (annualized)85.1%15.1%Best
Max Drawdown--34.1%
$10,000 over 5 years$1,882$18,596Best
Top 10 Weight32.6%Best38.2%
Fund FamilyDirexion Shares ETF TrustState Street Investment Management
CategoryAlternativeEquity
StyleMulti AlternativeLarge Cap Blend
InceptionMay 28, 2015Jan 22, 1993

Volatility and max drawdown are measured over the window both funds cover: May 28, 2015 to Oct 14, 2026 (11.4 years).

LABU vs SPY growth

Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 11.4 years both funds cover.

LABU vs SPY Performance

Direxion Daily S&P Biotech Bull 3X ETF (LABU) is an ETF from Direxion Shares ETF Trust and State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management. Over the past year LABU returned +96.63% while SPY returned +17.47%. Year to date, LABU is up 33.35% versus a gain of 13.53% for SPY.

Over three years, LABU compounded at +47.83% per year against +22.36% for SPY; over five years the annualized figures are -28.40% and +13.21% respectively. Across the full 11-year window we track, SPY has the edge at +12.73% annualized vs -20.93%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

LABU has been the more volatile fund, with annualized monthly volatility of 85.1% compared with 15.1% for SPY. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.

The two funds' monthly returns correlate at 0.58. They move together some of the time, and apart the rest.

Fees and Cost Over Time

LABU charges 0.93% per year while SPY charges 0.09%. On a $10,000 position that is $93 vs $9 annually, a gap of $84 per year that compounds over a long holding period. On income, LABU currently yields 0.34% against 0.99% for SPY.

Holdings Overlap

LABU already in SPY9.6%
SPY already in LABU1.8%

9.6% of LABU's money is in holdings SPY also owns. 1.8% of SPY's money is in holdings LABU also owns.

LABU and SPY share little of their money.

8 positions in common, counted across the 161 positions we hold weights for in LABU and 504 in SPY, against full books of 325 and 1,515.

What only one of them owns

Our book lists 488 positions for SPY that do not appear in our book for LABU (97.3% of the fund), and 146 for LABU that do not appear in SPY (86.9%).

Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.

Top Shared Holdings

StockWeight in LABUWeight in SPYDifference
ABBVAbbvie Inc.1.21%0.70%0.51%
MRNAModerna1.62%0.08%1.54%
AMGNAmgen Inc1.19%0.31%0.88%
GILDGild Gilead Sciences Inc.1.15%0.28%0.87%
VRTXVertex Pharmaceuticals Inc - Common1.12%0.20%0.92%
BIIBBiogen Inc.1.21%0.05%1.16%
REGNRegeneron Parmaceuticals Inc.1.05%0.12%0.93%
INCYIncyte Corp.1.06%0.03%1.03%

You are not choosing between two funds in isolation.

Whichever of LABU and SPY you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.

LABUSPY

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, LABU or SPY?

LABU has an expense ratio of 0.93% while SPY charges 0.09%. SPY is the cheaper option, by $84 a year on a $10,000 investment.

Which performed better, LABU or SPY?

Over the past year LABU returned +96.63% vs +17.47% for SPY, so LABU leads on 1-year performance. Over the longest common window we track (11 years), LABU annualized -20.93% vs +12.73% for SPY. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, LABU or SPY?

LABU has been the more volatile fund at 85.1% annualized versus 15.1% for SPY.

Should I hold both LABU and SPY?

LABU and SPY have a monthly-return correlation of 0.58, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.

What is the holdings overlap between LABU and SPY?

9.6% of LABU's money is in holdings SPY also owns. 1.8% of SPY's is in holdings LABU also owns. They hold 8 positions in common, counted across the 161 positions we hold weights for in LABU and 504 in SPY.

Which pays a higher dividend, LABU or SPY?

LABU yields 0.34% while SPY yields 0.99%, so SPY currently pays the higher dividend yield.

Is SPY better than LABU?

SPY has a lower expense ratio. LABU led over 1Y and 3Y, SPY over 5Y and the full window. LABU is less concentrated, with 32.6% of the fund in its ten largest positions against 38.2%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.