Question 1

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

Accepted Answer

Dollar cost averaging $100 per week into NI for 5 years (261 purchases) would have resulted in a total investment of $26,100 and a current value of $33,229, a return of 27%. Using Enhanced DCA, which concentrates buys during dips, the same $100/week base deployed $25,457 and grew to $34,717 — a 36% return.

Question 2

What is the best DCA strategy for NI?

Accepted Answer

Backtesting shows Enhanced DCA — which increases buy amounts during market dips and reduces or skips buys when NI is overextended — outperformed standard weekly DCA by 9% over 5 years. The enhanced strategy achieved a 36% return vs 27% for standard DCA.

Question 3

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

Accepted Answer

Investing $100 per week into NI for 3 years (157 purchases, $15,700 total) would have grown to $17,935 — a 14% return. Enhanced DCA over the same period returned 17%.

Question 4

Is DCA into NI worth it?

Accepted Answer

Based on a 5-year backtest, DCA into NI returned 27% with standard weekly purchases. An intelligent DCA strategy that buys more during dips returned 36% over the same period — a 9% gain in return, while deploying a similar or smaller amount of capital.

Question 5

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

Accepted Answer

Dollar cost averaging $100/week into NI for 5 years would result in approximately 815 shares with a standard DCA approach (avg entry $32). Enhanced DCA targeting dips results in 852 shares at an average entry of $30.

Question 6

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

Accepted Answer

Enhanced DCA into NI returned 36% over the past 5 years. The S&P 500 (SPY) returned approximately 53% over the same period. NI's performance reflects its volatility as a utilities asset. Enhanced DCA outperformed standard DCA by 9%, demonstrating the value of intelligent entry timing during market dips.

Question 7

What is the risk of dollar cost averaging into NI?

Accepted Answer

Past backtest performance does not guarantee future results. NI is a utilities 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 NiSource dollar cost averaging strategy?

Accepted Answer

Standard DCA invests a fixed amount ($100/week or $433/month) into NI 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 9% higher returns than standard DCA while deploying less total capital into NI.

Period	Standard DCA	Enhanced DCA	Alpha
1-Year	-8%	-4%	+4%
3-Year	14%	17%	+3%
5-Year	27%	36%	+9%

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Dollar cost averaging into NI — backtest results

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