%0 Journal Article %A Scott D. Below %T Leveraged Index Investing %B Rydex Nova Fund %D 2003 %R 10.3905/joi.2003.319538 %J The Journal of Investing %P 81-91 %V 12 %N 1 %X This evaluation of the long-run performance of leveraged index investing uses Rydex Nova Fund as a proxy. The results of a regression model are used to predict the fund's performance from 1950 through the time it was actually established in 1993. A Monte Carlo simulation suggests that the probability of outperforming the underlying index goes to one as the holding period goes to infinity. The volatility of the underlying index and the geometric nature of returns means that the return magnification achieved by leveraged funds over time will be lower than the fund's daily target magnification. %U https://joi.pm-research.com/content/iijinvest/12/1/81.full.pdf