If you’ve ever bought a leveraged bull or bear ETF and wondered by you didn’t get the return you thought you would … yep, you guessed it: compounding.
All else being equal, higher volatility of returns means lower compounded returns.
More Is Not Always Better. Less May Be More.
Leveraged bull and bear fund provider Direxion explains:
[pdf width=”100%” height=”900px”]https://s3.amazonaws.com/wc-pdf-2013/compounding-Volatility_Matters.pdf[/pdf]