Question 1

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

Accepted Answer

Dollar cost averaging $100 per week into VFIAX for 5 years (261 purchases) would have resulted in a total investment of $26,100 and a current value of $40,003, a return of 53%. Using Enhanced DCA, which concentrates buys during dips, the same $100/week base deployed $24,252 and grew to $42,310 — a 74% return.

Question 2

What is the best DCA strategy for VFIAX?

Accepted Answer

Backtesting shows Enhanced DCA — which increases buy amounts during market dips and reduces or skips buys when VFIAX is overextended — outperformed standard weekly DCA by 21% over 5 years. The enhanced strategy achieved a 74% return vs 53% for standard DCA.

Question 3

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

Accepted Answer

Investing $100 per week into VFIAX for 3 years (157 purchases, $15,700 total) would have grown to $20,620 — a 31% return. Enhanced DCA over the same period returned 38%.

Question 4

Is DCA into VFIAX worth it?

Accepted Answer

Based on a 5-year backtest, DCA into VFIAX returned 53% with standard weekly purchases. An intelligent DCA strategy that buys more during dips returned 74% over the same period — a 21% gain in return, while deploying a similar or smaller amount of capital.

Question 5

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

Accepted Answer

Dollar cost averaging $100/week into VFIAX for 5 years would result in approximately 55 shares with a standard DCA approach (avg entry $470). Enhanced DCA targeting dips results in 59 shares at an average entry of $413.

Question 6

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

Accepted Answer

Enhanced DCA into VFIAX returned 74% over the past 5 years. The S&P 500 (SPY) returned approximately 53% over the same period. VFIAX's performance reflects its volatility as a other asset. Enhanced DCA outperformed standard DCA by 21%, demonstrating the value of intelligent entry timing during market dips.

Question 7

What is the risk of dollar cost averaging into VFIAX?

Accepted Answer

Past backtest performance does not guarantee future results. VFIAX is a other 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 Vanguard Fidelity Index Fund dollar cost averaging strategy?

Accepted Answer

Standard DCA invests a fixed amount ($100/week or $433/month) into VFIAX 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 21% higher returns than standard DCA while deploying less total capital into VFIAX.

Period	Standard DCA	Enhanced DCA	Alpha
1-Year	9%	14%	+5%
3-Year	31%	38%	+6%
5-Year	53%	74%	+21%

VFIAX DCA Backtest — Dollar Cost Averaging Results

VFIAX DCA Results: Key Findings

Alpha you missed while unsubscribed

Dollar cost averaging into VFIAX — backtest results

Buying the dips for Vanguard Fidelity Index Fund