Direxion Daily Healthcare Bull 3X Shares (CURE) seeks to deliver 300% of the daily performance of the Health Care Select Sector SPDR Fund (XLV), which tracks healthcare companies in the S&P 500 including pharmaceuticals, biotechnology, medical devices, and healthcare services providers.
How It Works
CURE uses derivatives including swaps and futures contracts to achieve triple leveraged exposure to healthcare stocks through daily rebalancing. The fund resets its leverage ratio every trading day to maintain the 3x target, meaning it aims for 300% of XLV's daily moves but not longer-term performance. Holdings consist primarily of financial instruments rather than direct stock ownership, with positions adjusted continuously throughout each trading session.
Key Features
- Provides 3x amplified exposure to healthcare sector in single trade, eliminating need for margin accounts or complex derivatives strategies
- Daily rebalancing ensures consistent 3x leverage ratio each morning, though this creates compounding effects over multiple days
- Targets established healthcare companies in S&P 500 rather than speculative biotech, providing leveraged exposure to sector leaders
Risks
- This ETF can lose value rapidly due to daily reset compounding—if healthcare drops 10% then rises 10%, fund does not return to break-even
- Triple leverage amplifies all movements, so 10% healthcare sector decline becomes 30% fund loss in single day with potential for total loss
- Healthcare sector faces regulatory risks from drug pricing policies, FDA approvals, and healthcare reform that can trigger sharp sector-wide selloffs
Who Should Own This
Suitable only for active traders with high risk tolerance and intraday to few-day holding periods. Requires constant monitoring and should represent maximum 1-5% of portfolio. Best for experienced investors making short-term tactical bets on healthcare sector momentum, not buy-and-hold strategies.