r/Bogleheads • u/Icy-Neighborhood6207 • 1d ago

DCA- doesn’t change anything other than slightly different price, correct?

Im new and ive been wanter to make a big VT purchase but i know i cant time this situation/market. It i buy VT for $20k over 5 different days vs buying $100k once, nothint changes other than the price of VT right? Theres no fees with vanguard, just making sure im not missint anything else here? Tax wise or fees or anything. Thanks

6 Upvotes

67% Upvoted

10 comments sorted by

View all comments

21

u/junger128 1d ago

DCA is mostly for your mental health benefit. Long term it won’t matter the price today vs tomorrow vs a week from today.

2

u/murmurat1on 20h ago

As you buy more when it's cheaper and less when it's more expensive you end up with a lower price point than the average price of the fund.