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Message:: [QUOTE="yakpoo, post: 1108619, member: 18157"]Here's another example... You have $500 to buy shares of a stock that initially sells for $10/share. The share price at the beginning of each month over a five month period is $10, $5, $10, $20, $10. Buy&Hold: You buy 50 shares @$10/share, sit back and collect your dividends.DCA: You put your $500 into a MM account (collecting interest) and transfer $100 at the beginning of each month to buy the stock... Month #1: $100 buys 10 shares @$10/shareMonth #2: $100 buys 20 shares @$5/shareMonth #3: $100 buys 10 shares @$10/shareMonth #4: $100 buys 5 shares @$20/shareMonth #5: $100 buys 10 shares @$10/share So, if you assume any of the B&H dividends you receive are about the same as the DCA interest and dividends, we can forget about that. The final results are... Buy & Hold: 50 shares @$10/share or $500DCA: 55 shares @$10/share or $550 That's how DCA works! I'll admit that's a hokey example, but it makes the point.[/QUOTE]