Portfolio a alokace
A Portfolio for Regular Monthly Investing
Key takeaways
- Regular investing (DCA) eliminates the timing problem and simplifies decision-making psychologically.
- Accumulation ETFs are ideal for regular contributions — dividends are automatically reinvested and require nothing extra.
- One or two global ETFs are enough for 90% of investors; a more complex portfolio brings no proportional advantage.
- The key is consistency — investing every month without exception, even during downturns.
A portfolio for regular monthly investing is designed to be set up once and then simply contributed to — without the need for complex decisions every month.
Why Regularity Is the Most Powerful Weapon
Regular investing removes the biggest advantage investors try to achieve — "correct timing" — and replaces it with averaging the entry price over time. You buy more units when prices fall, fewer at peaks. The result is an average entry price lower than the average market price.
Psychologically: if you've committed to investing every month without exception, a market decline ceases to be a threat and becomes a discount. This shift in perspective is very valuable.
How to Build a DCA Portfolio
For the vast majority of investors, the following is sufficient:
- One global equity ETF (MSCI World, FTSE All-World) as the foundation — covering thousands of companies from around the world.
- Optionally, a bond ETF for a portion of the portfolio if you have a shorter horizon or lower risk tolerance.
- Optionally, a separate EM ETF for a deliberate overweight of emerging markets.
More components add complexity without proportional benefit. Complexity is the enemy of consistency.
Accumulation vs. Distribution Share Classes
For regular investing, accumulation ETFs are more advantageous — dividends are automatically reinvested. You don't need to deal with incoming dividends, dividend tax payments (15% in the Czech Republic), or manual reinvestment.
Rebalancing with Regular Contributions
If you have two components (equities + bonds), rebalance through new contributions — contribute to whichever has fallen below its target weight. This avoids selling and taxable events. We cover this in detail in the article on rebalancing without taxes. The foundation of consistent investing is described in the power of compound interest.
FAQ
How many ETFs do I need for regular investing?
One global ETF (MSCI World or FTSE All-World) covers thousands of companies and provides sufficient diversification. Adding bonds makes sense with a shorter horizon or lower risk tolerance. Two to three components are the maximum for sustainable simplicity.
Which ETF should I choose for monthly investing?
An accumulation UCITS ETF with a low TER (under 0.25%) from a reputable provider — Vanguard, iShares, Xtrackers. The specific ISIN depends on availability at your broker and the tax domicile (prefer Irish domicile).
What should I do when I don't have money one month?
Skip that month without guilt — regularity is an ideal, not a dogma. If the occasional absence stresses you out, set a lower regular amount and add extra voluntarily. 90% consistency is better than perfectionism leading to frustration.