Dollar Value Averaging
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- See also Dollar Cost Averaging
Introduction
Dollar Value Averaging (DVA), sometimes called Value Averaging (VA), is a strategy popularized by Edleson in a book first published in 1993 and now reissued.[1] DVA uses spreadsheets (available here) to determine how much to allocate to various asset classes.
Unlike Dollar Cost Averaging, the amount being invested varies with the value of the portfolio. As the market goes up, the amount being invested goes down and vice versa.
A Financial Webring Forum thread discussing DVA is here.
References
- ↑ Michael Edleson, Value Averaging: The Safe and Easy Strategy for Higher Investment Returns, Wiley, 2006.
