pampermommy
New member
Hello everyone,
my plan was to buy 1 share (approx. 97€ currently) of VWCE ETF every month on IB. However, after I bought the first share I noticed that the fee was 1.25€.
And, since the fee would be pretty much the same if I would buy 2-5 shares, I thought about changing my strategy to buying X shares every X months, where X is not 1 (e.g. 4 shares every 4 months).
But, what's the upper limit of months that I can do without blowing up the whole point of the dollar-cost averaging strategy?
Is it maybe the optimal scenario in this situation to buy 3 shares every 3 months or do you have different thoughts?
EDIT: While having the conversation in the comments, I remembered the Elbow method I used previously while programming. The method is a heuristic used so you can find out the "optimal" number of clusters in your dataset by finding the elbow in the graph.
So I plotted the graph for my scenario and got the "elbow" for 3 shares. However, I want to take into account that dollar-cost averaging suggests investing regularly as possible so that I'm not out of the market.
That's why my conclusion is that the optimal decision would be to buy 2 shares every 2 months because the difference in the fee between 2 and 3 months (0.215%) is not sufficient to justify missing out on the market.
EDIT2: Great investment calculator shared by r/-Ricardo: https://investcalc.github.io/
Thanks, everyone, for the help!
my plan was to buy 1 share (approx. 97€ currently) of VWCE ETF every month on IB. However, after I bought the first share I noticed that the fee was 1.25€.
And, since the fee would be pretty much the same if I would buy 2-5 shares, I thought about changing my strategy to buying X shares every X months, where X is not 1 (e.g. 4 shares every 4 months).
But, what's the upper limit of months that I can do without blowing up the whole point of the dollar-cost averaging strategy?
Is it maybe the optimal scenario in this situation to buy 3 shares every 3 months or do you have different thoughts?
EDIT: While having the conversation in the comments, I remembered the Elbow method I used previously while programming. The method is a heuristic used so you can find out the "optimal" number of clusters in your dataset by finding the elbow in the graph.
So I plotted the graph for my scenario and got the "elbow" for 3 shares. However, I want to take into account that dollar-cost averaging suggests investing regularly as possible so that I'm not out of the market.
That's why my conclusion is that the optimal decision would be to buy 2 shares every 2 months because the difference in the fee between 2 and 3 months (0.215%) is not sufficient to justify missing out on the market.
EDIT2: Great investment calculator shared by r/-Ricardo: https://investcalc.github.io/
Thanks, everyone, for the help!