Can indexing be the opposite of DCA?

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an_asker
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Can indexing be the opposite of DCA?

Post by an_asker »

Sounds counter-intuitive, but hear me out (maybe I have my basics tied up in a knot, though I don't think so).

As the FAANG (or any other stock for that matter) go up in value, their proportion in the indices increases. So, as the index keeps going up, if we keep buying, by DCAing we are buying less shares of the index (of course), however, we are purchasing more of the FAANG stocks than those of the companies that are beaten down. Similarly, if the FAANGs go down in value, their proportion in the index goes down and so does the index. We buy more shares of the index, but will end up buying less of the FAANG (which is what has brought the index down).

Does this conundrum make sense?
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Re: Can indexing be the opposite of DCA?

Post by MIretired »

I think of Faang group as trend following. What is the opposite of DCA? Lump Sum?
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Re: Can indexing be the opposite of DCA?

Post by sailaway »

an_asker wrote: Tue Sep 21, 2021 4:50 pm Sounds counter-intuitive, but hear me out (maybe I have my basics tied up in a knot, though I don't think so).

As the FAANG (or any other stock for that matter) go up in value, their proportion in the indices increases. So, as the index keeps going up, if we keep buying, by DCAing we are buying less shares of the index (of course), however, we are purchasing more of the FAANG stocks than those of the companies that are beaten down. Similarly, if the FAANGs go down in value, their proportion in the index goes down and so does the index. We buy more shares of the index, but will end up buying less of the FAANG (which is what has brought the index down).

Does this conundrum make sense?
Dollar cost averaging was originally in contrast to contestant share purchases. Ie, if you wanted to invest a chunk of money, you did so buy purchasing a 100 shares on schedule, whatever the price, until your chunk was all in.

So, what you are describing is, exactly, dollar cost averaging.
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Re: Can indexing be the opposite of DCA?

Post by Mike Scott »

The composition of the index changes over time but you always own whatever it is at that time.
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Re: Can indexing be the opposite of DCA?

Post by Impatience »

an_asker wrote: Tue Sep 21, 2021 4:50 pm Sounds counter-intuitive, but hear me out (maybe I have my basics tied up in a knot, though I don't think so).

As the FAANG (or any other stock for that matter) go up in value, their proportion in the indices increases. So, as the index keeps going up, if we keep buying, by DCAing we are buying less shares of the index (of course), however, we are purchasing more of the FAANG stocks than those of the companies that are beaten down. Similarly, if the FAANGs go down in value, their proportion in the index goes down and so does the index. We buy more shares of the index, but will end up buying less of the FAANG (which is what has brought the index down).

Does this conundrum make sense?
There is no conundrum. You’re not buying “less of the index” - those FAANG stocks ARE the index. It’s working exactly as intended.
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Re: Can indexing be the opposite of DCA?

Post by BrokerageZelda »

I think what you mean to say is "is indexing performance chasing (buying high and selling low)?"

There was a semi-contentious exchange on another recent thread that you can find by searching for "performance chasing", but my read is that keeping in line with a market-cap-weighted index is not an emotionally driven mistake in the way performance chasing is.

So while some of the same surface level things may be happening, they are happening for very different reasons and in very different ways.
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Re: Can indexing be the opposite of DCA?

Post by nisiprius »

Perhaps not all of them, but many of the people who think that indexing forces you to buy overvalued stocks are suffering from a fundamental misunderstanding. They think that if Apple increases from being 4% to 5% of the index, index funds need to run out and buy more Apple stock in order to track the index. But the reason Apple stock's portion of the index increases is because Apple's price has risen, and that automatically makes the percentage of Apple within the fund rise, without requiring any stock purchases at all.
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Re: Can indexing be the opposite of DCA?

Post by UpperNwGuy »

an_asker wrote: Tue Sep 21, 2021 4:50 pm Sounds counter-intuitive, but hear me out (maybe I have my basics tied up in a knot, though I don't think so).

As the FAANG (or any other stock for that matter) go up in value, their proportion in the indices increases. So, as the index keeps going up, if we keep buying, by DCAing we are buying less shares of the index (of course), however, we are purchasing more of the FAANG stocks than those of the companies that are beaten down. Similarly, if the FAANGs go down in value, their proportion in the index goes down and so does the index. We buy more shares of the index, but will end up buying less of the FAANG (which is what has brought the index down).

Does this conundrum make sense?
This makes no sense whatsoever. You have arbitrarily decided to divide the total market index into two parts: FAANG and the rest of the index. You then assume that investors are in a lose-lose situation whether FAANG goes up or FAANG goes down.
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Re: Can indexing be the opposite of DCA?

Post by Beensabu »

an_asker wrote: Tue Sep 21, 2021 4:50 pm So, as the index keeps going up, if we keep buying, by DCAing we are buying less shares of the index (of course), however, we are purchasing more of the FAANG stocks than those of the companies that are beaten down.
You are paying more for them.
Similarly, if the FAANGs go down in value, their proportion in the index goes down and so does the index. We buy more shares of the index, but will end up buying less of the FAANG (which is what has brought the index down).
You are paying less for them.

The index is weighted by market capitalization. Market capitalization is the price of the stock multiplied by outstanding shares. If the outstanding shares of a company do not change, but the price does, then the market cap of that company changes. Whether or not that change in market cap significantly changes the company's proportion in the index depends on what is happening to the market cap (price x shares) of other stocks in the index at the same time. A change in the number of outstanding shares of a company can also result in a change in the market cap of that company until/unless the stock price adjusts.

When you DCA into an index fund, you DCA into the stocks of the companies it holds. Sometimes, you pay more for some of them. Sometimes, you pay less for some of them. Sometimes, you pay more for some and less for others at the same time.
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Re: Can indexing be the opposite of DCA?

Post by BJJ_GUY »

an_asker wrote: Tue Sep 21, 2021 4:50 pm Sounds counter-intuitive, but hear me out (maybe I have my basics tied up in a knot, though I don't think so).

As the FAANG (or any other stock for that matter) go up in value, their proportion in the indices increases. So, as the index keeps going up, if we keep buying, by DCAing we are buying less shares of the index (of course), however, we are purchasing more of the FAANG stocks than those of the companies that are beaten down. Similarly, if the FAANGs go down in value, their proportion in the index goes down and so does the index. We buy more shares of the index, but will end up buying less of the FAANG (which is what has brought the index down).

Does this conundrum make sense?
Market-cap weighted indices are inherently momentum driven. The stocks that outperform on a relative basis will grow as a percentage of the total. This is indisputable as the construct of the SPX, as an example, has changed drastically over the last 15 years.

That being said, the question isn't necessarily about the fact that the FAANGS have outperformed for so long, and become so much more represented over the last decade -- at least this alone doesn't provide any fundamental information for an investor.

However, what should be at least noted, is how the valuations of the FAANGS have changed over the last 15 years as they've grown within the index. The price being paid as a multiple of earnings, revenues, and basically every denominator used in valuation methods tell a story a little less rosy than the valuation deniers might lead us to believe. (Caveat: Despite the fact that valuations don't look great on a prospective basis, I'm in no way saying this can be timed, nor should you necessarily try. Investor sentiment is a strong force, which is why valuations alone can be a challenging variable upon which to base investment decisions.)
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Re: Can indexing be the opposite of DCA?

Post by an_asker »

Looks like I have done my argument a disfavor by using the word FAANG. My bad. Let me start over.
----------------------------------------------
I am hoping we are all in agreement that the way the market cap works, if a stock price goes up, its share in the index goes up as well. Let me use an example:

For simplicity, my Index Fund has only two stocks - A and B. Let's say each stock has a stock price of $50 and the index fund is priced at $100/share.

Every month, I purchase $100 of the mutual fund and DW purchases $50 of each of the stocks. We all agree that both DW and I are DCAing (you can DCA into stocks as well as mutual funds), no?

Month 1: I purchase one share of the mutual fund (which contains one share of A and one share of B).

DW individually purchases one share each of A and B.

Month 2: stock A goes up to $60 and stock B goes down to $40.

Once more, I purchase one share of the mutual fund (one share of each stock).

DW purchases 5/6th share of A and 1.25 shares of B.

Month 3: stock A is now at $40 and stock B is at $60.

I purchase one share of the mutual fund (one share of each stock again).

DW purchases 1.25 shares of A and 5/6th shares of B.
-------------------------------------------------------------------------------
At the end of three months, I have 3 shares of the mutual fund that are valued at $300.

DW has 3.08 shares of A and 3.08 shares of B, the total value of which is $308.

By DCAing into the individual stocks, DW purchased more of the stocks when they were cheaper and less when they were expensive.

And I, though I was textbook DCAing into the mutual funds, ended up purchasing more of each stock (than I should have) when they were more expensive and less of each stock when they were less expensive.

Does this example help explain my OP?
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Re: Can indexing be the opposite of DCA?

Post by ReadyOrNot »

You are confusing everyone.
You have two related concepts.
The index fund gets you the average over the market, an ensemble average.
The DCA is an average over time, the time average.
Obviously, the time average and ensemble average are not the same.
However, with some assumptions about the randomness of states, in physics, the assumption that you can get the same results by taking either one ( useful in Monte Carlo analysis), is called the ergodic hypothesis. Your stock market examples are good examples of a case where the ergodic hypothesis does not work.

Anyway, you just have two different kinds of averaging. One does not undo the other.
Last edited by ReadyOrNot on Wed Sep 22, 2021 12:34 am, edited 1 time in total.
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Re: Can indexing be the opposite of DCA?

Post by BogleFan510 »

This thread title makes no sense. Study the definition of words, then act accordingly.
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Re: Can indexing be the opposite of DCA?

Post by Beensabu »

an_asker wrote: Tue Sep 21, 2021 11:41 pm Does this example help explain my OP?
Yes. In your example, you are cap weighting, and your wife is equal weighting (sort of). You are both dollar cost averaging into your chosen investments.

There are equal weight index funds (mostly ETFs) out there. The expense ratios tend to be higher (sometimes a lot higher), and there is obviously a lot more turnover (so taxes, if held in taxable).

The difference between equal weight funds and your wife in the example is that she is not trading to maintain an equal weight between her chosen stocks, but is investing an equal amount in each and holding them. The only way to do that would be to select a basket of individual stocks, but then you'd be stock picking...
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Re: Can indexing be the opposite of DCA?

Post by sf_tech_saver »

The goal of index investing is to capture the 'market' return at a low cost.

The market votes on the price of the shares and --as everyone clearly understands this is hard to beat.

The market also votes on the relative share of the market each stock is via its market cap.

Indexes like VTI use both of these market signals perfectly to align you with 'market returns'.

Beating the market is very hard over the long term...yada yada.

**

MOST important to your question perhaps -- in no way is DCA a proven way of 'beating' the market. Many threads on lump-sum and absolute time in the market being the winner.

Your question is really a rephrasing of the "can't I just buy the winners, or the cheap ones or the X of the market' to improve my returns vs. the index.

Take the market returns and enjoy life :)
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Re: Can indexing be the opposite of DCA?

Post by MIretired »

Beensabu wrote: Wed Sep 22, 2021 1:28 am
an_asker wrote: Tue Sep 21, 2021 11:41 pm Does this example help explain my OP?
Yes. In your example, you are cap weighting, and your wife is equal weighting (sort of). You are both dollar cost averaging into your chosen investments.

There are equal weight index funds (mostly ETFs) out there. The expense ratios tend to be higher (sometimes a lot higher), and there is obviously a lot more turnover (so taxes, if held in taxable).

The difference between equal weight funds and your wife in the example is that she is not trading to maintain an equal weight between her chosen stocks, but is investing an equal amount in each and holding them. The only way to do that would be to select a basket of individual stocks, but then you'd be stock picking...
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Re: Can indexing be the opposite of DCA?

Post by an_asker »

sf_tech_saver wrote: Wed Sep 22, 2021 2:32 am [...]
MOST important to your question perhaps -- in no way is DCA a proven way of 'beating' the market. Many threads on lump-sum and absolute time in the market being the winner.
During the accumulation phase, there's really no way to avoid DCA, whether it's the best way or not! Besides, I am just trying to confirm that DCAing into indexes like S&P500 is not really DCAing like I hope I demonstrated with my example.
Your question is really a rephrasing of the "can't I just buy the winners, or the cheap ones or the X of the market' to improve my returns vs. the index.

Take the market returns and enjoy life :)
This is the investing theory forum :oops:

The only practical application - if any - will be in fun money :-)
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Re: Can indexing be the opposite of DCA?

Post by an_asker »

BogleFan510 wrote: Wed Sep 22, 2021 12:18 am This thread title makes no sense. Study the definition of words, then act accordingly.
I agree. I struggled how to express my points - the title being the peak of that struggle!
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Re: Can indexing be the opposite of DCA?

Post by an_asker »

Beensabu wrote: Wed Sep 22, 2021 1:28 am
an_asker wrote: Tue Sep 21, 2021 11:41 pm Does this example help explain my OP?
Yes. In your example, you are cap weighting, and your wife is equal weighting (sort of). You are both dollar cost averaging into your chosen investments.
[...]
Aren't we all cap weighting with the market index and S&P500 index funds?

I still don't see myself - in the example - dollar cost averaging! Because when a specific stock is valued higher, I am purchasing more of it (in dollar value) compared to other, more beaten down stocks in the index. And vice versa, I am purchasing less of it if it is valued lesser.

In other words, though I am dollar cost averaging into the index, I am purchasing more of the expensive stocks inside it and less of the inexpensive stocks. By definition, dollar cost averaging should be the opposite!
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Re: Can indexing be the opposite of DCA?

Post by Beensabu »

an_asker wrote: Wed Sep 22, 2021 9:11 pm
Beensabu wrote: Wed Sep 22, 2021 1:28 am
an_asker wrote: Tue Sep 21, 2021 11:41 pm Does this example help explain my OP?
Yes. In your example, you are cap weighting, and your wife is equal weighting (sort of). You are both dollar cost averaging into your chosen investments.
[...]
Aren't we all cap weighting with the market index and S&P500 index funds?
Yes.
I still don't see myself - in the example - dollar cost averaging! Because when a specific stock is valued higher, I am purchasing more of it (in dollar value) compared to other, more beaten down stocks in the index. And vice versa, I am purchasing less of it if it is valued lesser.
Yes, you are. DCA is just putting a fixed amount into a particular investment at periodic intervals. If you put a % of your paycheck into an index fund, you are dollar cost averaging into that index fund.
In other words, though I am dollar cost averaging into the index, I am purchasing more of the expensive stocks inside it and less of the inexpensive stocks.
That's what you do with a cap weighted index fund. It's momentum investing. That's just what it is. It's not perfect, but it's a lot better than a whole bunch of other options.
By definition, dollar cost averaging should be the opposite!
No, it shouldn't. DCA is just putting a fixed amount into a particular investment at periodic intervals.

If you want to be a value investor, be a value investor. Nobody ever said that dollar cost averaging was value investing.
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Re: Can indexing be the opposite of DCA?

Post by an_asker »

Beensabu wrote: Wed Sep 22, 2021 9:28 pm
an_asker wrote: Wed Sep 22, 2021 9:11 pm
Beensabu wrote: Wed Sep 22, 2021 1:28 am
an_asker wrote: Tue Sep 21, 2021 11:41 pm Does this example help explain my OP?
Yes. In your example, you are cap weighting, and your wife is equal weighting (sort of). You are both dollar cost averaging into your chosen investments.
[...]
Aren't we all cap weighting with the market index and S&P500 index funds?
Yes.
I still don't see myself - in the example - dollar cost averaging! Because when a specific stock is valued higher, I am purchasing more of it (in dollar value) compared to other, more beaten down stocks in the index. And vice versa, I am purchasing less of it if it is valued lesser.
Yes, you are. DCA is just putting a fixed amount into a particular investment at periodic intervals. If you put a % of your paycheck into an index fund, you are dollar cost averaging into that index fund.
In other words, though I am dollar cost averaging into the index, I am purchasing more of the expensive stocks inside it and less of the inexpensive stocks.
That's what you do with a cap weighted index fund. It's momentum investing. That's just what it is. It's not perfect, but it's a lot better than a whole bunch of other options.
By definition, dollar cost averaging should be the opposite!
No, it shouldn't. DCA is just putting a fixed amount into a particular investment at periodic intervals.

If you want to be a value investor, be a value investor. Nobody ever said that dollar cost averaging was value investing.
By definition, cost averaging is purchasing less of something when it is expensive and more of it when it is inexpensive. My issue is that an index fund isn't anything but a function of its underlying stocks. And in the case of SP and Nasdaq indexes, dollar cost averaging is just not dollar cost averaging (when you drill deeper and look at its components) but - thanks for teaching me the correct phrase - momentum investing.

Momentum investing is purchasing more of something when it is more expensive and less of it when it is inexpensive. As you can see from the first sentence of the previous paragraph, momentum investing is exactly opposite of dollar cost averaging.

That is the thought I was trying to convey on this thread. That though we are thinking we are DCAing into S&P and Nasdaq indexes (and I agree that is indeed what we are doing - at the index level), we are actually closet momentum investing!
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Re: Can indexing be the opposite of DCA?

Post by Beensabu »

an_asker wrote: Thu Sep 23, 2021 8:50 am By definition, cost averaging is purchasing less of something when it is expensive and more of it when it is inexpensive.
No. That is not the definition of dollar cost averaging. That is where the disconnect is between you and the rest of this thread.

Dollar cost averaging is putting a fixed amount into a particular investment at periodic intervals. This is intended to reduce volatility and downside risk. It can potentially result in a lower total average cost per share overall (when you take all the times that you bought shares at all the different prices), but it doesn't have to.

You don't have to believe me. Google the definition.
Momentum investing is purchasing more of something when it is more expensive and less of it when it is inexpensive. As you can see from the first sentence of the previous paragraph, momentum investing is exactly opposite of dollar cost averaging.
Momentum investing is the opposite of value investing.
That is the thought I was trying to convey on this thread. That though we are thinking we are DCAing into S&P and Nasdaq indexes (and I agree that is indeed what we are doing - at the index level), we are actually closet momentum investing!
Yes, that is what we are doing. Not everyone is in the closet about it, though.

Again, you have confused dollar cost averaging with value investing. It's worth it to go figure out the difference for yourself.
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Re: Can indexing be the opposite of DCA?

Post by an_asker »

Beensabu wrote: Thu Sep 23, 2021 10:12 am
an_asker wrote: Thu Sep 23, 2021 8:50 am By definition, cost averaging is purchasing less of something when it is expensive and more of it when it is inexpensive.
No. That is not the definition of dollar cost averaging. That is where the disconnect is between you and the rest of this thread.

Dollar cost averaging is putting a fixed amount into a particular investment at periodic intervals. This is intended to reduce volatility and downside risk. It can potentially result in a lower total average cost per share overall (when you take all the times that you bought shares at all the different prices), but it doesn't have to.

You don't have to believe me. Google the definition.
[...]
Let me see if I can explain with numbers since you don't agree with what I am saying (and don't believe that I know what I am saying lol).

If you put $100 every month into any investment, you will automagically be "purchasing less of something when it is expensive and more of it when it is inexpensive" (like I said).

January: $100 at $25/share = 4 shares
February: $100 at $50/share = 2 shares
March: $100 at $10/share = 10 shares
April: $100 at $1/share = 100 shares

"It can potentially result in a lower total average cost per share overall (when you take all the times that you bought shares at all the different prices), but it doesn't have to." I never said that the overall price per share will be "lower" (than what, anyway?).
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Re: Can indexing be the opposite of DCA?

Post by Beensabu »

an_asker wrote: Thu Sep 23, 2021 11:04 am
Beensabu wrote: Thu Sep 23, 2021 10:12 am
an_asker wrote: Thu Sep 23, 2021 8:50 am By definition, cost averaging is purchasing less of something when it is expensive and more of it when it is inexpensive.
No. That is not the definition of dollar cost averaging. That is where the disconnect is between you and the rest of this thread.

Dollar cost averaging is putting a fixed amount into a particular investment at periodic intervals. This is intended to reduce volatility and downside risk. It can potentially result in a lower total average cost per share overall (when you take all the times that you bought shares at all the different prices), but it doesn't have to.

You don't have to believe me. Google the definition.
[...]
Let me see if I can explain with numbers since you don't agree with what I am saying (and don't believe that I know what I am saying lol).

If you put $100 every month into any investment, you will automagically be "purchasing less of something when it is expensive and more of it when it is inexpensive" (like I said).

January: $100 at $25/share = 4 shares
February: $100 at $50/share = 2 shares
March: $100 at $10/share = 10 shares
April: $100 at $1/share = 100 shares

"It can potentially result in a lower total average cost per share overall (when you take all the times that you bought shares at all the different prices), but it doesn't have to." I never said that the overall price per share will be "lower" (than what, anyway?).
Okay.
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Re: Can indexing be the opposite of DCA?

Post by VTI »

[duplicate]
Last edited by VTI on Thu Sep 23, 2021 1:21 pm, edited 1 time in total.
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Re: Can indexing be the opposite of DCA?

Post by VTI »

An_asker:

I appreciate the odd, unorthodox question. I ask plenty of those myself.

At first, I didn't understand what you meant, but this reply of yours did a fine job clarifying:
an_asker wrote: Tue Sep 21, 2021 11:41 pm [...]
I believe you're onto something.

First, others have pointed out, index investors with regularly scheduled purchases do indeed buy more of the index when it's cheaper overall (i.e. S&P 500 is down), and less of the index when it's expensive overall (i.e. S&P 500 is up).

Second, you're right! As you said, with index investing, each purchase does allocate a larger portion of money toward the index constituents that have recently increased in value (and vice versa). And yes, that does run counter to the stated goals of many DCA investors—they want to buy more of something when it's cheap and less of something when it's expensive.

However, even folks who buy shares in individual companies can't escape that phenomenon.

When you buy a share of Apple, you're buying a piece of the whole Apple pie. The iPhone division, the iCloud division, the Mac division, etc. Internal teams are always growing, shrinking, competing, dissolving, and reforming. This is not fundamentally different from the constituents of a stock index.
Last edited by VTI on Thu Sep 23, 2021 3:11 pm, edited 4 times in total.
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Re: Can indexing be the opposite of DCA?

Post by muffins14 »

I agree with other posters that it's best not to conflate two concepts: indexing and DCA vs lump-sum

DCA would be making periodic investments rather than lump-summing an amount you have sitting around.

If you believe the market prices are the best price for each stock in the index, then you are always paying the fair price, regardless of whether FANG is up and the rest of the index is down. You're buying the stocks for the best-estimated price on that day. If you really think some FANG is "on-sale" or "too high", then buy some options or something. Lucky for you, someone else has probably already came to the same conclusion, and the price has already adjusted, so you don't have to think about it
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Re: Can indexing be the opposite of DCA?

Post by an_asker »

VTI wrote: Thu Sep 23, 2021 12:03 pm An_asker:

I appreciate the odd, unorthodox question. I ask plenty of those myself.

At first, I didn't understand what you meant, but this reply of yours did a fine job clarifying:
an_asker wrote: Tue Sep 21, 2021 11:41 pm [...]
I believe you're onto something.
Thanks for the vote of confidence lol!
First, others have pointed out, index investors with regularly scheduled purchases do indeed buy more of the index when it's cheaper overall (i.e. S&P 500 is down), and less of the index when it's expensive overall (i.e. S&P 500 is up).
I never disputed this.
Second, you're right! As you said, with index investing, each purchase does allocate a larger portion of money toward the index constituents that have recently increased in value (and vice versa). And yes, that does run counter to the stated goals of many DCA investors—they want to buy more of something when it's cheap and less of something when it's expensive.
This is precisely my point. I agree there is nothing currently out there (at least at the same level of fees) which would buy more of the constituent stocks of the index when they are at a "lower" level and less of them when they are a "personal" higher level. And it might not even be a good move to do so, i.e., the momentum investing - as the other respondent wrote - might win.

But isn't that what we Bogleheads always say anyway - that it is the process that matters not the results? Or maybe in this case, we should forget about drilling deeper into the process just because it would be a royal headache.
However, even folks who buy shares in individual companies can't escape that phenomenon.

When you buy a share of Apple, you're buying a piece of the whole Apple pie. The iPhone division, the iCloud division, the Mac division, etc. Internal teams are always growing, shrinking, competing, dissolving, and reforming. This is not fundamentally different from the constituents of a stock index.
True, in a way, though you could - as an employee - always debate the pros and cons of joining a high-octane performing team vs one that isn't so. I know from experience with my employer, two employers ago, where the bonus etc was based on how well each employee's division was doing. Mine never got any - we were the step children of the mother ship :oops:

On the other hand, what if there was a good chance of upheavals down the road and the current low performing team becomes top dog in a decade? After all, that's how Apple beat up Microsoft over the last two decades or so, no?

But yes, this is all theoretical - that is why I chose this board in the first place anyway :sharebeer

PS: I am considering putting a small amount - up to maybe $100 per month - into Schwab slices. Pick 10-20 top companies of the Nasdaq 100 and S&P 500 and allocate $5/month to each. Would be a fun exercise. It would be fun money but it would also be sorta diversified.
Topic Author
an_asker
Posts: 4903
Joined: Thu Jun 27, 2013 2:15 pm

Re: Can indexing be the opposite of DCA?

Post by an_asker »

I never did what I thought I would do, but I have found a more hands-off approach. This etf appears to be quite close to the S&P500 index; but not close enough - please correct me if I am wrong - to stop tax loss harvesting between this vs VTI or QQQ.
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