Question 1

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

Accepted Answer

Dollar cost averaging $100 per week into VSMAX for 5 years (261 purchases) would have resulted in a total investment of $26,100 and a current value of $34,183, a return of 31%. Using Enhanced DCA, which concentrates buys during dips, the same $100/week base deployed $31,461 and grew to $44,287 — a 41% return.

Question 2

What is the best DCA strategy for VSMAX?

Accepted Answer

Backtesting shows Enhanced DCA — which increases buy amounts during market dips and reduces or skips buys when VSMAX is overextended — outperformed standard weekly DCA by 10% over 5 years. The enhanced strategy achieved a 41% return vs 31% for standard DCA.

Question 3

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

Accepted Answer

Investing $100 per week into VSMAX for 3 years (157 purchases, $15,700 total) would have grown to $18,903 — a 20% return. Enhanced DCA over the same period returned 26%.

Question 4

Is DCA into VSMAX worth it?

Accepted Answer

Based on a 5-year backtest, DCA into VSMAX returned 31% with standard weekly purchases. An intelligent DCA strategy that buys more during dips returned 41% over the same period — a 10% gain in return, while deploying more capital.

Question 5

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

Accepted Answer

Dollar cost averaging $100/week into VSMAX for 5 years would result in approximately 246 shares with a standard DCA approach (avg entry $106). Enhanced DCA targeting dips results in 319 shares at an average entry of $99.

Question 6

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

Accepted Answer

Enhanced DCA into VSMAX returned 41% over the past 5 years. The S&P 500 (SPY) returned approximately 53% over the same period. VSMAX's performance reflects its volatility as a other asset. Enhanced DCA outperformed standard DCA by 10%, demonstrating the value of intelligent entry timing during market dips.

Question 7

What is the risk of dollar cost averaging into VSMAX?

Accepted Answer

Past backtest performance does not guarantee future results. VSMAX 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 Small-Cap Value ETF dollar cost averaging strategy?

Accepted Answer

Standard DCA invests a fixed amount ($100/week or $433/month) into VSMAX 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 10% higher returns than standard DCA while deploying more total capital into VSMAX.

Period	Standard DCA	Enhanced DCA	Alpha
1-Year	4%	6%	+2%
3-Year	20%	26%	+6%
5-Year	31%	41%	+10%

VSMAX DCA Backtest — Dollar Cost Averaging Results

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Dollar cost averaging into VSMAX — backtest results

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