Benzinga.com
0
All posts from Benzinga.com
Benzinga.com in Benzinga.com,

Investors In This Biotech ETF Must Have Loved Hillary Clinton's Tweet

SPDR S&P Biotech ETF ETF:XBI, LABD - Investors In This Biotech ETF Must Have Loved Hillary Clinton's Tweet

No one really knows if presidential candidate Hillary Clinton has a position in the market. What the investment community does know is that Clinton's tweet about pharmaceuticals price gouging gave traders an excuse to punish biotechnology stocks and ETFs.

There was, however, at least one outlier.

By the time the closing bell rang on Monday, the Direxion Daily S&P Biotech Bear 3X Shares LABD 7.62% was on of the day's top-performing ETFs on a percentage basis, finishing higher by 16 percent. That was enough to make LABD, still in its infancy following its May debut, one of the day's top-performing ETFs of any stripe. LABD and its bullish relative, the Direxion Daily S&P Biotech Bull 3X Shares LABU 7.72%, were the first triple-leveraged biotech ETFs to come to market.

Related Link: Don't Worry Investors, Hillary Can't Change Drug Pricing As President

Predictably, LABU has been the more prolific asset gatherer of the pair as is usually the case with bullish and bearish leveraged ETF pairs. As of September 21, LABU had hauled in $123.6 million in assets since coming to market, making it one of the more successful ETFs to debut in 2015.

LABD was easily the best-performing ETF in Direxion's leveraged stable on Monday after seven new units of the fund were created, resulting in inflows of $12.6 million and LABD's biggest volume day since its May debut. Importantly, at least for those traders that are long LABD, the ETF is following through on Monday's bullish action.

At time of writing, LAD is higher by nearly 11 percent, making it the top-performing ETF on a...


More