Etfs/Compound interest

Hey Joel.

No stupid questions around here mate :)

Yep, they certainly can and historically have done so in most cases. In fact, any investment which has a return can benefit from compound interest. Compound interest is really just the phenomenon where you earn a return on an investment (even cash in the bank), and the money eventually multiplies by itself because of the returns building on themselves over a long period of time.

Basically: Your money earns money, and then that new money earns even more money. Happens with shares, property, anything which delivers a positive return over time.

Hope that makes sense!

Dave