What is a good amount to DCA into American ETFs such as VOO?

Hi Anon,

I assume that if you're doing a DCA into VOO, you'll be doing it via the FSMOne ETF RSP?

If you are, the transaction fee is fixed at USD$1.07. I did a rough calculation, and the fee percentage will be around 0.61% if you invest SGD$250 each month.

Since it's a fixed fee, if you invest a larger sum each month, the transaction fee will take up a lower percentage of your overall investment amount.

Regarding lump sum vs DCA, it has been shown that lump sum will tend to perform better than DCA. However, if you choose the lump sum way, you need to be able to control your emotions. If you see your investments losing value the very next day, would you be tempted to sell?

I personally choose the DCA route as it helps me to control my emotions. Regardless of the price of the stock, I will still be buying the stock with a fixed amount.

So I feel that it really depends on whether you're able to control your emotions before you decide whether lump sum or DCA is better for you!