Question 1

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

Accepted Answer

Dollar cost averaging $100 per week into VGT for 5 years (261 purchases) would have resulted in a total investment of $26,100 and a current value of $53,587, a return of 105%. Using Enhanced DCA, which concentrates buys during dips, the same $100/week base deployed $24,749 and grew to $62,082 — a 151% return.

Question 2

What is the best DCA strategy for VGT?

Accepted Answer

Backtesting shows Enhanced DCA — which increases buy amounts during market dips and reduces or skips buys when VGT is overextended — outperformed standard weekly DCA by 46% over 5 years. The enhanced strategy achieved a 151% return vs 105% for standard DCA.

Question 3

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

Accepted Answer

Investing $100 per week into VGT for 3 years (157 purchases, $15,700 total) would have grown to $25,587 — a 63% return. Enhanced DCA over the same period returned 79%.

Question 4

Is DCA into VGT worth it?

Accepted Answer

Based on a 5-year backtest, DCA into VGT returned 105% with standard weekly purchases. An intelligent DCA strategy that buys more during dips returned 151% over the same period — a 46% gain in return, while deploying a similar or smaller amount of capital.

Question 5

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

Accepted Answer

Dollar cost averaging $100/week into VGT for 5 years would result in approximately 419 shares with a standard DCA approach (avg entry $62). Enhanced DCA targeting dips results in 485 shares at an average entry of $51.

Question 6

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

Accepted Answer

Enhanced DCA into VGT returned 151% over the past 5 years. The S&P 500 (SPY) returned approximately 53% over the same period. VGT's performance reflects its volatility as a information technology asset. Enhanced DCA outperformed standard DCA by 46%, demonstrating the value of intelligent entry timing during market dips.

Question 7

What is the risk of dollar cost averaging into VGT?

Accepted Answer

Past backtest performance does not guarantee future results. VGT is a information 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 Vanguard Information Technology ETF dollar cost averaging strategy?

Accepted Answer

Standard DCA invests a fixed amount ($100/week or $433/month) into VGT 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 46% higher returns than standard DCA while deploying less total capital into VGT.

Period	Standard DCA	Enhanced DCA	Alpha
1-Year	24%	39%	+15%
3-Year	63%	79%	+16%
5-Year	105%	151%	+46%

VGT DCA Backtest — Dollar Cost Averaging Results

VGT DCA Results: Key Findings

Alpha you missed while unsubscribed

Dollar cost averaging into VGT — backtest results

Buying the dips for Vanguard Information Technology ETF