Yup, no problem there.
The one you have to look out for when it comes to volatility is if you have $100 in the S&P, the market drops 50% one year, grows 75% the next year.
You've made an average annual return of 12.5%/year over the two year period, but your $100 investment has "grown" to $87.50 (actually a $12.50 loss)