Best Day of the Month to Dollar Cost Average Into an ETF ?

[FiveDriver]

I was just pondering this question -- Is there a typical best day of the month to DCA into an ETF such as SPY, or maybe IWM ??

We don't really need my RMD at this point. I want to roll it into my taxable account with these ETFs. I thought I read about some research into the typical best day of the month to RMD. First of the month ? Ex-Dividend Date ?

For instance, SPY pays a quarterly dividend. The ex-divi date is 9-15 as an example. Is it better to DCA on the 15th of every month ??

IWM shows the quarterly ex-divi date of the 26th.


Just wondering.

 

[OldShooter]

If there ever were, it would have been arbitraged away by now. There are no free lunches out there.

 

[jazz4cash]

Any day that ends in a’Y’.

 

[BruinBones]

Yesterday. Otherwise, today.

 

[FiveDriver]

I remembered where I first read about this 'Better Trading Day' research.

It was on the Muscular Portfolios website, which features the Papa Bear and Mama Bear portfolios recommended by someone on here.

According to several independent studies, the largest gain is achieved by reallocating on or around the last trading day of the month, as described in Newsletter #52.

 

[GrayHare]

You might also consider limit orders, for example, "buy only if the share price drops to $X".

 

[COcheesehead]

Buy at the end of the day. More gains happen overnight than during the day. See chart.

 

[Exchme]

If the money in already invested in the same investment, then are you not really out of the market for any appreciable time when you take an RMD? The only differentiator I can think of is if you do it right before an ex-dividend date and end up "buying" the dividend in taxable, creating a tax liability you would otherwise never pay (since you don't need the RMD, it will get a step up basis for your heirs when you pass).

 

[TheWizard]

You might also consider limit orders, for example, "buy only if the share price drops to $X".

Limit orders, checko.
Don't be in a rush...

 

[WhenIsItTime]

Seems you are only managing the time it is out of the market.

I have something similar with an annual deferred comp payment. My positions are liquidated and I get a check in cash. I put any portion (most of it) I don't need immediately back in the market in a similar AA as quickly as possible. No reason to get speculative while it is out.