Putting lump sum investing and dollar-cost averaging to the test for Canadians

  • 📰 globeandmail
  • ⏱ Reading Time:
  • 46 sec. here
  • 2 min. at publisher
  • 📊 Qulity Score:
  • News: 22%
  • Publisher: 92%

How to invest new assets after the market’s terrific performance in 2019 GlobeInvestor

Canada Headlines News

Canada Latest News, Canada Headlines

This translation has been automatically generated and has not been verified for accuracy.Coming off a record-breaking year in North American equities – the S&P 500 produced a total return of 31.5 per cent in 2019 and the S&P/TSX Composite advanced 22.9 per cent – investors with new assets to put into the market might be wary of plowing them in at this point.

The choice between Option 1 or Option 2 may not be as obvious as it seems. To many, dollar-cost averaging may intuitively seem ideal as it spreads out the cost of purchase over time. To add clarity to these common paths, my Morningstar colleagues Paul Kaplan and Maciej Kowara published a study titledin which they compared the results of lump-sum investing and dollar-cost averaging in the S&P 500 index, on a total return basis, using data spanning back to 1926.

Over two months, the difference is negligible between the two approaches. Over 120 months, dollar-cost averaging yields just 68 per cent of final wealth compared with lump-sum investing, on average.outlining what they deem as “critical months” of performance for an actively managed mutual fund. Critical months were defined as those whose removal would be detrimental to the fund’s outperformance over its benchmark.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 5. in CA
 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Denis Shapovalov shocked by Hungary’s Marton Fucsovics in first round of Australian OpenDenis Shapovalov shocked by Hungary’s Marton Fucsovics in first round of Australian Open Globe_Sports
Source: globeandmail - 🏆 5. / 92 Read more »

Natural Disaster Calls Could Hurt The Army’s Ability To Fight: Commander“If this becomes of a larger scale, more frequent basis, it will start to affect our readiness” Dealing with natural disasters and aid to the civil power both in Canada and abroad will probably become the military’s top priority due to the existential threat of human caused climate breakdown with a need for more resources to be focused on this threat. The number of troops logically has to go up, both RegForce and Reserves. Raising another brigade group for Atlantic Canada - 3CMBG - is the way to go. What a crock!
Source: HuffPostCanada - 🏆 61. / 53 Read more »

Feds Move Ahead On ‘Buy Canadian’ Advertising Campaign For FoodThe campaign’s goal is to “promote Canadian products on the domestic market” with “emotional” ads. APTNNews JorgeBarrera TheTyee retailwire JustinTrudeau am sure LOTS Cdns want buy Cdn BUT shld hv 'freer' inter-provincial trade conjob They make me cry every day. So.. success.
Source: HuffPostCanada - 🏆 61. / 53 Read more »

Raising a billionaire: How Maye Musk's own life lessons played into Elon's successSupermodel Maye Musk describes how her own professional struggles taught her to invest in her full potential, a lesson that played into her parenting of SpaceX CEO Elon Musk. Really? 🤔🤔 Did they benefit from Apartheid? Smh
Source: CTVNews - 🏆 1. / 99 Read more »

First remains repatriated to Canada following Iran plane crashThe remains of one Canadian who was killed in the Iran plane crash have been repatriated, Foreign Affairs Minister François-Philippe Champagne confirmed Tuesday. It wasn't a plane crash. The passenger plane was shot down using two Russian missiles by the terrorist Iran regime. First body returned to Canada. Canada government paying Iranians to bring back the dead to Canada imo
Source: CTVNews - 🏆 1. / 99 Read more »

Former Canadian Forces reservist hoped to incite violence at Virginia gun rally, U.S. court documents allegeNew documents are based FBI wiretaps of conversations between Patrik Mathews and a co-accused that took place in December sure sure Sounds like a glown in the dark plant
Source: globeandmail - 🏆 5. / 92 Read more »