Buying 1 Lot of the Same Stock Monthly is not DCA?
Option 1 - Buying 1000 shares of SPDR STI ETF (ES3) using Standard Chartered Trading Platform
Option 2 - Buying a fixed amount of S$3000 worth of SPDR STI ETF (ES3) using POSB Invest-Saver
Any difference in terms of performance?
The conversation went on to compare the performance or trade-off of both options. To be honest, it did not really matter to me. Both options will mean growing your portfolio and that is more important.
Nevertheless, I just did a simple calculation without including the transaction fees, any other cost, and dividends (See below).
Buying 1000 shares (1 lot)
Buying ~ S$3000 worth of shares
|Date||Price of ES3
|Share Purchased||Invested Capital||Share Purchased||Invested Capital|
Good news is both portfolios have grown substantially over a period of 2 years
As of 30 March, the price of ES3 is S$2.88. Option 1 Portfolio is valued at S$72,000 and Option 2 Portfolio is valued at S$67.685. The good news is both portfolios have grown substantially over a period of 2 years.