I have bought S&P 500 index fund for more than 300 days now 🥳🥳🥳 I started as an experiment to see how DCA vs Lumpsum works, now it’s an addiction (it doesn’t seem to hurt as of now). The started with $SPY when I bought July 27th, 2021 when it was $439.32. I later switched from $SPY to $VOO for a less expense ratio thanks to a member of Commonstock Sujan Baral.
My average price per share of $VOO is $368.89 and I have been able to accumulate 21.42124 shares of VOO 0.00%↑ in this time. I started investing when it was at $403, so I have been able to average down significantly.
Today, $VOO is at $364.18 (Nov 15th, 2022).The market is down 17.31% YTD and 10.94% from July 27th. My $VOO is down just 0.75%. Let’s see some graphs to visualize it!
Consistency ⌛️
I tried to buy VOO 0.00%↑ or SPY 0.00%↑ every trading day, but I am only human and can forget or am indulged in other activities. However, I have been pretty consistent.
Monthly breakdown 📆
The maximum purchase I made was $ 1,438.93 in October 2022 and the minimum purchase that I ever made was $ 224.93 in Feb 2022. In these 300 trades, I have been able to accumulate $7,626.90 worth of $VOO.
Number of shares 🏦
I have tried to buy $15 worth of $VOO or $SPY every day but sometimes I have bought more like $50, $100, and $1,000 as a treat to myself - resulting in significant bumps.
I have been able to buy a total of 21.42124 shares of VOO.
Performance 💪🏽
It's known that in downmarket DCA works and because I have been doing DCA, my performance is better than lumpsum investment. While my purchases are down 0.75%, the lump sum would have been down 10.94% from July 27th. My purchases beat lumpsum by 10.19%
If you account for dividends, my purchases will be in green.
Why did it work? 🤔
I think the reason it worked for me is because of the following
The momentum of the market is downwards, this helps me as I have been buying at a lower price than my average cost.
I have been consistent.
What’s next? 🔮
As this experiment started by reading the article about investing $15 per day from your child’s birth to when they turn 18, they will have $200,000. Nothing really is going to change. As I told you, buying $15 worth has been an addiction and I think it's for good. I will try to remain as consistent as possible.