DCA is my favorite investment strategy on eToro. It allows me to invest a fixed amount regularly over time, regardless of market performance. The advantages are clear:
Reduces risk: Instead of investing a large sum all at once, I dilute the risk associated with market fluctuations.
Discipline: It helps me stay consistent with my investments, avoiding the temptation to buy or sell based on emotions.
Leverages volatility: When prices go down, I can buy more units with the same amount. When they go back up, my portfolio grows.
Practical Example: The Power of DCA in the Long Term
Let's see how DCA can transform an investment over time. Let's put ourselves in the shoes of an investor with a 15-year time horizon, starting with:
Initial Capital: $2,000
Monthly Contribution: $100
Dividend Reinvestment: 1.15% annual yield
Benchmark Annual Return (S&P 500): approx. 10%
Using these parameters, after 15 years, the total amount invested would be:
Initial Capital + Monthly Contributions: $2,000 + ($100 * 12 months * 15 years) = $20,000
Considering a 10% annual return (S&P 500 benchmark) and dividend reinvestment, the estimated value of the investment at the end of 15 years would far exceed the invested amount, reaching around $56,000.
This demonstrates the power of compound interest and the consistency of DCA. The more time that passes, the more the "snowball effect" of reinvesting profits and dividends exponentially grows the portfolio's value.
Note: This is not financial advice. Past performance is not an indicator of future results. Financial markets carry risk.
$VT.US (Vanguard Total World Stock ETF) QQQ VOO DIA.US MCHI ISOM.DE GLD SOL ETH
BTC
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Wed Nov 12 2025 10:29:11 GMT+0000 (Coordinated Universal Time)
