2 Years of Dollar-Cost Averaging: The Real Returns

Started in July 2023

I began pulling 500,000 KRW (about $370) from my paycheck every month for dollar-cost averaging in July 2023. It's been exactly two years. Total principal invested: 12 million KRW. (Actually 11.5 million -- I missed one month. Air conditioner repair bill wiped me out.)

I split the investment 70:30 between an S&P 500 ETF and a Korean dividend ETF. No grand thesis behind the ratio. Three YouTube videos I watched all recommended something similar.

The actual returns after 2 years

As of July 1, 2025, the portfolio value is 13.87 million KRW. That's roughly a 20.6% return. Annualized, about 9.8%.

But that number is a bit misleading. The S&P 500 had a solid run during this period, and the USD/KRW exchange rate also rose, making KRW-denominated returns look better. In pure dollar terms, the picture is a bit different.

The Korean dividend ETF side was honestly underwhelming. 3.2% return. Including reinvested dividends, maybe 7%. I know going all-in on the S&P 500 would have yielded higher total returns. (But at this point, sunk cost fallacy keeps me from switching.)

I almost cracked twice

In April 2024, the S&P 500 dropped about 8% in a single month. Watching the red numbers grow in real time on my account, I genuinely considered selling. "Should I bail now?"

I didn't sell. But it wasn't a rational decision -- I was just too scared to press the sell button. It worked out, but I can't take credit for it. My indecisiveness saved me.

Then in October 2024, I wavered again. A friend bragged about making 40% on crypto in three months, and DCA suddenly felt painfully slow. (That friend lost 30% in December. The fact that I felt relieved hearing that probably makes me a bad person.)

The real advantage of DCA isn't the returns

After two years, I've realized that the core benefit of dollar-cost averaging isn't the return rate -- it's the habit of not spending. With 500,000 KRW automatically deducted each month, you start living as if that money never existed.

Two years ago, I'd get my paycheck, spend on whatever, and save what was left. Now, investment comes first and I live on the rest. That ordering difference matters more than you'd think.

500K a month wasn't always comfortable

Some months, 500,000 KRW was a stretch. Weddings and funerals stacking up, surprise hospital bills, year-end expenses clustering together. I forced myself to keep going because I knew "just this month off" would turn into next month too.

Missing that one month for the AC repair still bugs me. The S&P 500 went up 3.7% that month. Hindsight, of course. But still.

People's reactions are polar opposites

When I mention DCA, responses split in two. "That's what they call suckers on investing forums" versus "that's the most realistic approach." Interestingly, the former tends to come from people with under a year of investing experience, and the latter from people with three years or more. (Small sample size, can't generalize, but that's what I've observed.)

One coworker made 1.4x their principal in six months using leveraged ETFs. I was envious. Honestly envious. But the following quarter, they were sitting at -15% relative to principal. DCA is boring, but it doesn't have that roller coaster.

Going forward

I'll keep putting in 500,000 KRW monthly for the foreseeable future. Thinking about shifting the ratio more toward S&P 500 -- maybe 80:20.

One thing I've learned: watching too many investment YouTube videos is counterproductive. The more you watch, the more anxious you get, and the more you want to tinker. The whole point of DCA is not touching it, but the videos make you want to touch everything.

Ideally, I'd just deposit monthly and check once a year. In practice, I check daily. That's just how humans work.