DCA (PAC) with Interactive Brokers

[Zardack]

Good morning everyone,

I’ve been considering implementing a monthly PAC with Interactive Brokers (IB).

However, I’m concerned about the commission costs. With six ETFs in my portfolio, investing 1,000 CHF monthly would incur approximately 12 CHF in commissions, equivalent to 1.2%. Increasing the monthly contribution to 2,000 CHF would still result in a 12 CHF commission, reducing the impact to 0.6%.

An alternative approach would be to limit the PAC to the core ETF, VT, and rebalance the remaining ETFs twice a year. This would significantly reduce commission costs.

What are your thoughts on this? Does anyone have experience with PACs on IB?

[jay]

@Zardack

An alternative approach would be to limit the PAC to the core ETF, VT, and rebalance the remaining ETFs twice a year. This would significantly reduce commission costs.

The way I handle this is to buy shares of the ETF that is out of balance the most, each month.

[dom.swiss]

Mabe Degiro is a cheaper broker for periodical investment of small amounts? Else make less and larger investments. DCF also works on a quarterly basis…

Large ETF savings plan Switzerland comparison 2024

[Brndete]

Out of curiosity, what’s a PAC? From the context, some automated order, but what does it stand for?

[weirded]

@Brndete

Out of curiosity, what’s a PAC?

I think it is the italian acronym for “piano di accumulo di capitale” which can translate into dca or saving plan (regular - e.g. monthly - investment typically into funds)