Lump Sum vs DCA for XEQT in Canada: Decision Framework

Should you invest everything now or spread it out? This guide gives you a decision framework based on behavior, cash flow, and risk tolerance.

Fast answer

• If you can tolerate volatility, lump sum is often simpler.
• If lump sum makes you hesitate or panic, DCA may improve follow-through.
• The best strategy is the one you can execute consistently.

Decision checklist

• Will you lose sleep after a short-term drop?
• Is this money truly long-term?
• Do you have an emergency fund in place?
• Are you likely to delay if you don’t automate now?

Example implementation plans

Option A: Lump sum + automation

Invest now, then set recurring contributions.

Option B: 3–6 month DCA plan

Pre-schedule fixed buys and do not alter based on headlines.

Related articles

• Dollar Cost Averaging in Canada: The Simple Strategy to Build Wealth
• When is a Good Time to Buy XEQT? The Answer Might Surprise You
• How Does XEQT Perform During Recessions? (Historical Analysis)