Would like to put 30k in ETF. Should I buy all at once, or should I DCA? Any advice?

Historically speaking, lump sum investing today into the S&P500 gives a better return vs DCA in the long run. I was also surprised when I read about it. All the while I thought DCA is the best way.

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However, it is difficult emotionally. Should the market drop 10% tomorrow, will you be able to handle it?

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I personally still DCA monthly and invest more during corrections. But I usually very suay , always miss the bottom of the correction

The fact that you have 30k to invest. You have to think about 'selling put options'. Never buy all at once as the investment risk is the highest. Once you buy all at once, you secured the stock / ETF at that one price and you will get stucked. The only way forward is to pray that the stock / ETF price rises higher than your purchased price to make gains and profits. This is a no-no risk.

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No matter what, always DCA into your stock / ETF position. Having selling put options is a way to do so as you buy at a stike price 1 or 2 rows away from 'In the money' collect the premiums. If you really want to own that stock/ETF, you can buy in the money at the stike price.

If you're referring to purchase from open market & not through a robo-advisor, I will do 1) one lump sum + 2) DCA + 3) options (sell cash secured puts to lower your cost of investment).

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Assuming your $30,000 is in USD:

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All figures in USD

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e.g. ARKK

Current ETF Price: $110

1 lump sum: $11,000 today

DCA: Set aside $1,000, starting 1 Nov

Balance: $18,000 for remaining DCA.

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Meanwhile while waiting to DCA for the subsequent months ahead, you can do a sell cash secured put option contract at the strike price i.e. the price you are willing to pay for if it gets assigned to you.

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Let's say it's at strike price $100. So you will need to set aside $10,000 lump sum (1 ETF option contract = 100 shares - please check for other ETFs), in the event of an assignment.

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In return, you collect a premium from the buyer of your contract, for example, (I'm just throwing out a number, this amount may not be true), $200.

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You generate a 2% return on the $10,000 balance sum you have, while waiting to DCA for the subsequent months ahead.

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As for the remaining $8,000, you can either do sell cash secured put on other stocks (fundamentally strong companies), but do note this will be risky if the stock price gaps down or if there's an earnings release, then you may have to take the stock if the shares get assigned to you.

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Alternatively, you can put this $8,000 aside and don't touch it for the next 8 months for DCA.

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Long-term wealth creation is through consistency. The 2% return on the $10,000 balance is to reduce your cost of investment i.e. You paid $11,000 lump sum, now your cost of investment is $10,800 ($11,000 - $200 premium).

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Options can generate cashflows, but unless you really need the money now urgently, I'd suggest to plow back your returns into your investments.

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Ultimately, the end goal is to have a sufficient pot to fund our lifestyle comfortably when we retire. Hope this perspective helps.

Ultimately it depends how convicted you are of the current ETF price. Are you 100% confident this is the best price you can obtain the ETF at? If you're somewhat shaky then as what others have commented, you can consider DCA-ing.

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Not sure which ETF you are referring to but it would be good to identify when's the best time to DCA. Contrary to not timing the market, one can and should actually time when's the best time to DCA.

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Take a look at the chart attached. It's a chart of VOO (tracks the S&P 500 index). If you observe for the past couple of months, since May this year, this ETF is supported by MA50 (yellow line), everytime it touches MA50, it would bounce back up. And when one takes a closer look at where the MA50 is usually hit, it is the 3rd week of every month. This may not hold true for the coming months as one can see the market getting a bit choppy and even falling below the MA50. Seems like this MA50 has turned from a support to a resistance.

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I've laid out the facts, how you wish to intepret and act on it, its up to you. Hope you find it useful.