Daily resetting leveraged and inverse exposures exhibit positive convexity over time: the returns of the instrument increase more rapidly and decrease less rapidly than an equivalent linear exposure. In certain scenarios, daily resetting could work in favor of the trader.
For example, if the underlying index consistently moves in one direction then, the daily resetting instrument outperforms the non-resetting instrument. Therefore in a trending market, the daily resetting leveraged instrument should outperform the non-resetting leveraged position. This relationship holds regardless of the direction of the underlying market and is a result of the positive convexity of daily rebalanced instruments.