Historical data shows that a consistent $500 monthly investment into iShares U.S. Power Infrastructure ETF (POWR) starting in 2020 would have turned a total investment of $14K into $18K today. This represents a total return of 31.0% over the 6-year period, compounding through dividend reinvestment and market growth.
The Impact of Dividend Reinvestment (DRIP)
iShares U.S. Power Infrastructure ETF does not currently pay a notable dividend. For growth-focused stocks like POWR, dollar cost averaging relies entirely on price appreciation. Over the 6-year period, the strategy successfully captured the stock's price movements, resulting in a final portfolio value of $18K without the need for dividend reinvestment.
POWR vs. S&P 500 (SPY) Benchmark
When comparing this dollar cost averaging strategy against a broad market index,POWR outperformed the S&P 500 ETF (SPY). The same $500 monthly contributions into SPY would have grown to $15K, compared to POWR's $18K.