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Dollar-cost averaging (DCA)

Investing a fixed amount at regular intervals, regardless of price.

ETFs & PortfolioBeginner

Definition

By buying a fixed dollar amount each period, you buy more shares when prices are low and fewer when they are high. It removes the need to time the market and builds the habit of investing regularly.

Watch out for

DCA does not guarantee a profit or prevent loss. If you already have a lump sum, historically investing it earlier has often done better than spreading it out.

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