Question 1

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

Accepted Answer

Dollar cost averaging $100 per week into MFA for 5 years (261 purchases) would have resulted in a total investment of $26,100 and a current value of $16,643, a return of -36%. Using Enhanced DCA, which concentrates buys during dips, the same $100/week base deployed $51,903 and grew to $33,971 — a -35% return.

Question 2

What is the best DCA strategy for MFA?

Accepted Answer

Backtesting shows Enhanced DCA — which increases buy amounts during market dips and reduces or skips buys when MFA is overextended — outperformed standard weekly DCA by 2% over 5 years. The enhanced strategy achieved a -35% return vs -36% for standard DCA.

Question 3

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

Accepted Answer

Investing $100 per week into MFA for 3 years (157 purchases, $15,700 total) would have grown to $10,701 — a -32% return. Enhanced DCA over the same period returned -28%.

Question 4

Is DCA into MFA worth it?

Accepted Answer

Based on a 5-year backtest, DCA into MFA returned -36% with standard weekly purchases. An intelligent DCA strategy that buys more during dips returned -35% over the same period — a 2% gain in return, while deploying more capital.

Question 5

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

Accepted Answer

Dollar cost averaging $100/week into MFA for 5 years would result in approximately 2419 shares with a standard DCA approach (avg entry $11). Enhanced DCA targeting dips results in 4938 shares at an average entry of $11.

Question 6

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

Accepted Answer

Enhanced DCA into MFA returned -35% over the past 5 years. The S&P 500 (SPY) returned approximately 53% over the same period. MFA's performance reflects its volatility as a real estate asset. Enhanced DCA outperformed standard DCA by 2%, demonstrating the value of intelligent entry timing during market dips.

Question 7

What is the risk of dollar cost averaging into MFA?

Accepted Answer

Past backtest performance does not guarantee future results. MFA is a real estate 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 MFA Financial, Inc. dollar cost averaging strategy?

Accepted Answer

Standard DCA invests a fixed amount ($100/week or $433/month) into MFA 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 2% higher returns than standard DCA while deploying more total capital into MFA.

Period	Standard DCA	Enhanced DCA	Alpha
1-Year	-27%	-23%	+4%
3-Year	-32%	-28%	+4%
5-Year	-36%	-35%	+2%

MFA DCA Backtest — Dollar Cost Averaging Results

MFA DCA Results: Key Findings

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Dollar cost averaging into MFA — backtest results

Buying the dips for MFA Financial, Inc.