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Annual DCA Or Monthly DCA? Which Is Better?

Introduction

I recently read a blurb in an AAII Journal article that referenced research that Lump Sum (LS) investing is better than Dollar Cost Averaging (DCA). I believe I eventually found the referenced piece published

Year

Contribution Limit

Monthly Contribution Amount

2001

$2,000.00

$166.67

2002

$3,000.00

$250.00

2003

$3,000.00

$250.00

2004

$3,000.00

$250.00

2005

$4,000.00

$333.33

2006

$4,000.00

$333.33

2007

$4,000.00

$333.33

2008

$5,000.00

$416.67

2009

$5,000.00

$416.67

2010

$5,000.00

$416.67

2011

$5,000.00

$416.67

2012

$5,000.00

$416.67

2013

$5,500.00

$458.33

2014

$5,500.00

$458.33

2015

$5,500.00

$458.33

2016

$5,500.00

$458.33

2017

$5,500.00

$458.33

2018

$5,500.00

$458.33

2019

$6,000.00

$500.00

2020

$6,000.00

$500.00

2021

$6,000.00

$500.00

2022

$6,000.00

$500.00

2023

$6,500.00

$541.67

Final Portfolio Value

(2001-2023)

Monthly DCA Investor

Late Annual DCA Investor

iShares Core S&P Mid-Cap ETF (ARCX: IJH)

$357,950.05

$347,253.39

iShares Core S&P Small-Cap ETF (ARCX: IJR)

$352,698.57

$340,124.24

Final Portfolio Value

(2001-2023)

Monthly DCA Investor

Late Annual DCA Investor

Early Annual DCA Investor

iShares Core S&P Mid-Cap ETF (ARCX: IJH)

$357,950.05

$347,253.39

$370,827.09

iShares Core S&P Small-Cap ETF (ARCX: IJR)

$352,698.57

$340,124.24

$ 362,494.62

iShares Core S&P 500 ETF (ARCX: IVV)

$399,828.95

$386,935.11

$408,271.96

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