---
type: "Topics"
locale: "en"
url: "https://longbridge.com/en/topics/24111721.md"
description: "Let's briefly discuss $SPDR S&P Biotech ETF(XBI)$ and $Direxion Daily S&P Biotech Bull 3X Shares(LABU)$ 、$ProShares UltraPro QQQ(TQQQ)$.There are two main reasons for the high attrition of leveraged ETFs: 1. The underlying assets are a basket of futures, options and total return swaps, with daily settlement of gains/losses; 2. High management fees (~0.75%).The fundamental reason LABU can't compare with TQQQ is that XBI's valuation, EPS growth, and dividends/buybacks can't keep up with QQQ over the long term. In other words, XBI's component stocks lack long-term endogenous growth and shareholder return capabilities, and are too affected by external factors (interest rates, policies) - these constitute the 'attrition'.QQQ's annual EPS growth and buybacks have driven its net value steadily northward, creating a slow bull market.Leveraged ETFs are particularly suitable for slow bull varieties: valuation, EPS growth, and business models all need to be excellent.Below is the net value curve of LABU and TQQQ since 2018."
datetime: "2024-09-25T12:59:52.000Z"
locales:
  - [en](https://longbridge.com/en/topics/24111721.md)
  - [zh-CN](https://longbridge.com/zh-CN/topics/24111721.md)
  - [zh-HK](https://longbridge.com/zh-HK/topics/24111721.md)
author: "[股友zPViLl](https://longbridge.com/en/profiles/7200346.md)"
---

# Let's briefly discuss $SPDR S&P Biotech ETF(XB…