The Direxion Daily Healthcare Bull 3X Shares ETF has meaningfully outperformed the S&P 500 so far in 2025, benefiting from a recent shift in sentiment toward health care stocks. While CURE's underlying index is not as cheap as it was a few months ago, it still offers a roughly 19% forward P/E discount relative to the S&P 500. After strong recent returns, analysts project modest single-digit gains over the next 12 months for CURE's largest holdings.
Direxion continues to expand its single-stock ETF offerings for tactical traders. It has introduced five new single stock funds that add exposure to Oracle, Coinbase, Robinhood, and Intel.
The healthcare sector is catching some flack, and rightfully so. For the three years ending October 15, the S&P Health Care Select Sector Index returned just 22.9%.
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This fund is designed for investors seeking aggressive investment exposure to the healthcare sector. By committing at least 80% of its net assets to financial instruments that offer 3X daily leveraged exposure to a specific index, the fund aims to amplify the returns of its underlying index on a day-to-day basis. The index in question is comprised of domestic companies operating within the healthcare sector. This includes a broad range of industries from pharmaceuticals and biotechnology to health care equipment, providers, and services. The fund's strategy is characterized by its non-diversified nature, focusing on maximizing the leveraged returns from this specific sector. It's crucial for potential investors to understand the inherent risks and rewards associated with leveraging, as it significantly magnifies both gains and losses depending on the daily index performance.
This product is the cornerstone of the fund, aiming to triple the daily performance of its healthcare sector index. It's achieved through leveraging, a technique that uses financial instruments like futures and options to increase potential returns. Intended for experienced investors who are comfortable with high risk for the chance of high reward, this aggressive strategy highlights the fund's focus on capitalizing on short-term movements within the healthcare sector.
The fund targets an array of industries within the healthcare sector, ensuring a focused yet comprehensive coverage. This includes investments in:
This diversified approach within the healthcare sector itself allows the fund to capitalize on various growth opportunities, from established pharmaceutical giants to emerging biotech innovators.