Question 1

How much would I have if I DCA'd $100/week into ARW for 5 years?

Accepted Answer

Dollar cost averaging $100 per week into ARW for 5 years (261 purchases) would have resulted in a total investment of $26,100 and a current value of $47,577, a return of 82%. Using Enhanced DCA, which concentrates buys during dips, the same $100/week base deployed $36,418 and grew to $73,535 — a 102% return.

Question 2

What is the best DCA strategy for ARW?

Accepted Answer

Backtesting shows Enhanced DCA — which increases buy amounts during market dips and reduces or skips buys when ARW is overextended — outperformed standard weekly DCA by 20% over 5 years. The enhanced strategy achieved a 102% return vs 82% for standard DCA.

Question 3

What would $100/week into ARW be worth after 3 years?

Accepted Answer

Investing $100 per week into ARW for 3 years (157 purchases, $15,700 total) would have grown to $27,524 — a 75% return. Enhanced DCA over the same period returned 99%.

Question 4

Is DCA into ARW worth it?

Accepted Answer

Based on a 5-year backtest, DCA into ARW returned 82% with standard weekly purchases. An intelligent DCA strategy that buys more during dips returned 102% over the same period — a 20% gain in return, while deploying more capital.

Question 5

How many shares of ARW would I have after DCA for 5 years?

Accepted Answer

Dollar cost averaging $100/week into ARW for 5 years would result in approximately 209 shares with a standard DCA approach (avg entry $125). Enhanced DCA targeting dips results in 323 shares at an average entry of $113.

Question 6

How does ARW DCA compare to the S&P 500?

Accepted Answer

Enhanced DCA into ARW returned 102% over the past 5 years. The S&P 500 (SPY) returned approximately 53% over the same period. ARW's performance reflects its volatility as a technology asset. Enhanced DCA outperformed standard DCA by 20%, demonstrating the value of intelligent entry timing during market dips.

Question 7

What is the risk of dollar cost averaging into ARW?

Accepted Answer

Past backtest performance does not guarantee future results. ARW is a technology asset whose price can fall as well as rise. While DCA reduces timing risk by spreading purchases over time, losses are still possible if the price declines significantly. Always invest within your risk tolerance and consider your overall portfolio diversification.

Question 8

What is the Arrow Electronics Inc. dollar cost averaging strategy?

Accepted Answer

Standard DCA invests a fixed amount ($100/week or $433/month) into ARW at regular intervals. Enhanced DCA improves on this by using RSI (Relative Strength Index) signals to increase buy amounts during market dips (oversold conditions) and reduce or skip purchases when the stock is overextended. Over the 5-year backtest, this timing approach has delivered 20% higher returns than standard DCA while deploying more total capital into ARW.

Period	Standard DCA	Enhanced DCA	Alpha
1-Year	47%	100%	+54%
3-Year	75%	99%	+24%
5-Year	82%	102%	+20%

ARW DCA Backtest — Dollar Cost Averaging Results

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Dollar cost averaging into ARW — backtest results

Buying the dips for Arrow Electronics Inc.