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INVESTING STRATEGY

DCA for ETFS

Hi All, I hold VAS (14%),VGS (25%), VAE(13%)and NDQ (29%). I would like to DCA Every month. Now i am not sure to which etf should I DCA. I am in red on all of them. Thanks

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Nirakar Puri

31 August 2022

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Dave Gow - Strong Money Australia

INVESTOR

over 2 years ago

Hi Nirakar :)

I guess it depends how you want to approach it. Do you have a ‘target’ in mind for each of these holdings and what % you want each to be in your portfolio? If you do, then it’s pretty easy – you can setup Autoinvest to (once per month) invest in the ETF which is furthest away from its target. This will be the easiest and most practical approach to stick with since it becomes effortless after you set it up.

If you’re investing manually each month, then it’s a little different. One option is to invest in the one which has performed the worst that month (since this kind of means it’s the best value of the group). The other option is to simply take it in turns and invest in one at a time, one each month for four months, then go back to the first one again.

There’s no right or wrong answer here. Just have a think about what you feel most comfortable with and also what you’ll find the most enjoyable or simplest to follow.

Hope that helps!

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