Question 1

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

Accepted Answer

Dollar cost averaging $100 per week into RY for 5 years (261 purchases) would have resulted in a total investment of $26,100 and a current value of $43,814, a return of 68%. Using Enhanced DCA, which concentrates buys during dips, the same $100/week base deployed $25,184 and grew to $48,062 — a 91% return.

Question 2

What is the best DCA strategy for RY?

Accepted Answer

Backtesting shows Enhanced DCA — which increases buy amounts during market dips and reduces or skips buys when RY is overextended — outperformed standard weekly DCA by 23% over 5 years. The enhanced strategy achieved a 91% return vs 68% for standard DCA.

Question 3

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

Accepted Answer

Investing $100 per week into RY for 3 years (157 purchases, $15,700 total) would have grown to $23,668 — a 51% return. Enhanced DCA over the same period returned 73%.

Question 4

Is DCA into RY worth it?

Accepted Answer

Based on a 5-year backtest, DCA into RY returned 68% with standard weekly purchases. An intelligent DCA strategy that buys more during dips returned 91% over the same period — a 23% gain in return, while deploying a similar or smaller amount of capital.

Question 5

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

Accepted Answer

Dollar cost averaging $100/week into RY for 5 years would result in approximately 228 shares with a standard DCA approach (avg entry $114). Enhanced DCA targeting dips results in 250 shares at an average entry of $101.

Question 6

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

Accepted Answer

Enhanced DCA into RY returned 91% over the past 5 years. The S&P 500 (SPY) returned approximately 53% over the same period. RY's performance reflects its volatility as a financials asset. Enhanced DCA outperformed standard DCA by 23%, demonstrating the value of intelligent entry timing during market dips.

Question 7

What is the risk of dollar cost averaging into RY?

Accepted Answer

Past backtest performance does not guarantee future results. RY is a financials 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 Royal Bank of Canada dollar cost averaging strategy?

Accepted Answer

Standard DCA invests a fixed amount ($100/week or $433/month) into RY 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 23% higher returns than standard DCA while deploying less total capital into RY.

Period	Standard DCA	Enhanced DCA	Alpha
1-Year	8%	13%	+5%
3-Year	51%	73%	+22%
5-Year	68%	91%	+23%

RY DCA Backtest — Dollar Cost Averaging Results

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Dollar cost averaging into RY — backtest results

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