Dollar-Cost Averaging With ETFs
Dollar-cost averaging (DCA) is a popular strategy among mutual fund and exchange-traded fund (ETF) investors. With this approach, you invest fixed amounts of money regularly, regardless of market conditions, potentially reducing the impact of market volatility on your portfolio.
“Systematically buying investments incrementally over time is a proven method to a successful long-term outcome because it helps you ignore the noise of financial news and the folly of attempting to time the market,” said David Tenerelli, a certified financial planner at Strategic Financial Planning in Plano, Texas.
Below, we’ll explore why dollar-cost averaging with ETFs is often a smart move as part of your investing strategy.
Key Takeaway
- Dollar-cost…
