Dollar Cost Statistics

In this post, we explore the impact of dollar-cost averaging on investment returns, risk management, and portfolio performance. With a plethora of statistics ranging from historical returns to real-world case studies, we delve into the tangible benefits and considerations of employing this strategy in your investment journey.

Statistic 1

"Dollar-cost averaging contributes to a 2.3% increase in annualized returns for 10 years period, according to a study."

Statistic 2

"Investors who dollar-cost averaged into the S&P 500 from 1995 through 2014 would've earned a 9.5% annualized return."

Statistic 3

"A Vanguard study pointed out 67% of the time; a lump-sum investment approach outperformed dollar-cost averaging."

Statistic 4

"Dollar-cost averaging can decrease the risk of a substantial loss by 47% when investing in the S&P 500 index."

Statistic 5

"According to BlackRock, $100 per month invested over 20 years ending in 2014 would have yielded about $40,000."

Statistic 6

"World Bank data shows that the global average remittance fee is around 7%, booster by the dollar-cost averaging effect."

Statistic 7

"Dollar-cost averaging results in acquiring more shares when prices are down and less when they're high, leading to a lower average cost per share than the average price per share."

Statistic 8

"Research by Morningstar found, investors employing a dollar-cost averaging strategy were able to outperform the market by 1.3% over ten-year periods."

Statistic 9

"A survey found that 52% of millennials are utilizing the dollar-cost averaging strategy in their investments."

Statistic 10

"According to AllocateSmartly, the best-case dollar-cost averaging returns over 10 years for the S&P 500 was 20.4% in the 1950s."

Statistic 11

"A study by Schwab found that dollar-cost averaging decreased portfolio volatility by 13% over 20 years."

Statistic 12

"According to J.P. Morgan, dollar-cost averaging can lower the impact of market fluctuations on initial investments by as much as 38%."

Statistic 13

"The dollar-cost averaging strategy produced an averagely 8.5% return for investors over five years according to data from Fidelity."

Statistic 14

"Bankrate states that the average length of time investors use dollar-cost averaging is over 30 years."

Statistic 15

"BMO reports that over a 20 year period, dollar-cost averaging generally improved returns by an average of 2.6% per year."

Statistic 16

"Dollar-cost averaging eased the investment jitters for 78% of respondents in a BetterInvesting survey."

Statistic 17

"An analysis by Bloomberg showed that a dollar-cost average strategy would have reduced the maximum drawdown of the S&P 500 from 51% to 26% during the 2008 boom."

Statistic 18

"According to CNBC, if an investor had put $10 into the S&P 500 every day since 2000, they’d have around $100,000 by 2012."

Statistic 19

"Based on Investopedia's data, if one would have started dollar-cost averaging in Apple’s stock in 2002, the average purchase price by 2012 would have been $45.67."

Dollar-cost averaging is a proven investment strategy that offers significant benefits to investors in terms of increased returns and reduced risk. Research studies and data presented indicate that dollar-cost averaging can lead to improved annualized returns, lower average cost per share, decreased portfolio volatility, and reduced impact of market fluctuations. Additionally, the strategy has been shown to provide psychological comfort to investors during market fluctuations and economic uncertainties. The statistics collectively suggest that dollar-cost averaging is a practical and effective approach for long-term wealth accumulation and financial security.