Direxion Daily Healthcare Bull 3X ETF

CURE

Market cap $127M

The Direxion Daily Healthcare Bull 3X ETF (CURE) has slipped in early 2026 as investors take profits after a strong performance in late 2025. The correction in healthcare stocks comes even as analysts envisage significant gains for CURE's ten largest holdings over the next 12 months. This dynamic may present an opportunity to rotate into CURE from the unlevereged XLV ETF, which tracks the same underlying index.

The first month of 2026 is already in the books. Which sector walked away with the top spot when it came to total returns?

Direxion Daily Healthcare Bull 3X Shares ETF has surged 83.5% since August 2025, reflecting bullish momentum in healthcare and pharma sectors. Reduced regulatory uncertainty, successful clinical trials, M&A activity, and prospects for 2026 rate cuts underpin the bullish thesis for CURE. CURE's leveraged structure amplifies both gains and losses, with significant time decay and risk, making it suitable only for tactical trading.

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.

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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%.

Amid rising concerns about stagflation, investors have continued to bid up the equities sector. As evidence, the benchmark S&P 500 sector is up over 13% year-to-date.

Large-cap momentum names have been pushing the healthcare sector aside. Investors have primarily been flocking to Magnificent Seven names benefiting from the artificial intelligence (AI) push.

The Direxion Daily Healthcare Bull 3X Shares ETF tracks an index composed of U.S. healthcare stocks. While the healthcare sector as a whole is essentially flat in 2025, the effect of beta slippage and a high expense ratio has resulted in CURE underperforming unleveraged ETFs. Looking ahead, CURE's underlying index trades at just 17.3x its forward earnings estimates, a wide discount relative to the S&P 500.