A core to build on. A strategy to examine. Explore the rules behind five hypothetical portfolio models with the same starting capital and contribution dates. The definitions below explain the research approach and the assumptions needed for a fair comparison.
Read the methodology
Start with the five model definitions, then review the weekly contribution rules and the treatment of risk and performance. These are educational models, not an actual account or a measured public performance record.
Availability: This page provides methodology. The interactive hypothetical comparison tool supports imported history and a fictional example. Live quotes, connected accounts and a measured public track record are not available.
Five approaches, the same contributions
| Model | Defined allocation |
|---|---|
| DTP Core + Value | Initial capital in VOO. Up to 100% of each new contribution may go to qualifying value opportunities, with a 10% total-portfolio cap per non-core position when buying. Unallocated money goes to VOO. |
| S&P 500 reference | 100% VOO, used as an investable S&P 500 total-return proxy. |
| 80/20 stocks and bonds | 80% VOO + 20% AGG. |
| Illustrative diversified mix | 50% VOO + 15% EFA (MSCI EAFE) + 15% DIA (Dow blue chips) + 20% AGG. |
| 16-investment reference basket | The fixed target percentages below, retained as a separate comparison. |
EFA, DIA and AGG define comparison portfolios only; they are not additions to the DTP purchase universe. “MSCI” is specified here as MSCI EAFE. The Dow allocation overlaps the S&P 500. The diversified mix is an illustrative reference, not a universal recommended portfolio.
What happens each week?
The hypothetical model starts with $10,000 in VOO and contributes $100 each Friday by default. These are illustrative amounts. It uses a documented decision recorded before the modeled purchase, an explicit valuation threshold, an expiry date and position limits. The entire weekly contribution is available for qualifying value opportunities, subject to the 10% position cap. Any money that cannot be allocated goes to VOO. When nothing qualifies, 100% of that week’s contribution goes to VOO.
The 100% opportunity setting applies to new contributions; it does not convert the existing VOO balance. The 10% cap limits new purchases using preceding-session values. Market movements can take a position above that cap, after which it receives no additions. DTP uses additions rather than automatic sales. References can be compared with contribution-only purchases or a separately selected annual rebalance.
Reference basket and research universe
| Target in the reference basket | Investments |
|---|---|
| 12% each | BRK.B, VOO, SCHG, QQQM, VUG, VOOG |
| 6% each | BLK, BX |
| 2% each | SCHD, DGRO, VYMI, SCHF, AIA, AAXJ, XLI, XAR |
The targets total 100%. A symbol’s inclusion makes it eligible for research; it is not a current buy signal. Additional stocks require a documented value case and a new prospective policy version. Overlapping growth and index funds are visible as separate holdings and may retain concentrated exposure.
Measure performance fairly
A fair comparison separates deposited capital from gain or loss, uses cash-flow-matched account values, and accounts for dividends and splits. The hypothetical portfolio comparison tool measures linked time-weighted return and drawdown using your imported history or a clearly fictional example. Missing price observations block a comparison rather than become a zero return. This is not a live account or a measured public performance record.
Weekly equal-dollar buying is dollar-cost averaging. Valuation-aware additions can be tested alongside it; volatility alone does not establish value or guarantee outperformance. Historical simulations remain hypothetical and depend on the supplied data and execution assumptions.
Read the investment research framework and Editorial Standards. Educational models, not personalized investment advice or brokerage orders.