Editing Vanguard S&P 500 UCITS ETF (section)

== Investment Strategy ==

=== Dollar Cost Averaging ===
A common and widely-recommended way of investing in ETFs is dollar cost averaging, where investors invest a fixed amount at regular time intervals (e.g. £1000 a month), as opposed to making a single lump sum investment. This investment strategy allows investors to manage price risk and reduce the impact of volatility on their portfolios. Additionally, it removes the need for  investors to "time the market", making investing much simpler and less stressful. This is the long-term investment strategy, investing for the long-term is again heavily promoted by John Bogle and Vanguard, and many other high-profile investors alike. Investors should reinvest any dividends earned from their investments to take advantage of the effects of compounding returns which can bring significant growth to an investor's portfolio.

=== Tax Efficiency ===
Another benefit of investing in ETFs using dollar cost averaging for the long-term is that it is a tax-efficient way to grow investments. This can be achieved in the U.K. by investing through a stocks and shares Individual Savings Account (ISA), where each investor has a £20,000 allowance each tax year, from which all capital gains and income made from their investments will not be taxed.