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Data Sources & Methodology

Transparent and reliable data is the core of our simulation. Here is how we collect and process the data.

⚙️ Methodology

Dividend Estimation

We estimate dividend yields by comparing the 'Adjusted Close' (which includes reinvested dividends) with the standard 'Close' price from Yahoo Finance. By reverse-engineering the difference, we extract the pure dividend reinvestment effect.

DCA & FX Logic

The simulation assumes a 'Beginning of Month' investment strategy. To technically implement this, we execute buy orders using the 'Previous Month's Close' price and exchange rate. For example, the investment for February is processed using January's closing market data. This accurately captures the currency impact (FX rate at the time of exchange) and the cost-averaging effect.

Data Providers

Stock Price & Dividends

Yahoo Finance

Market data including Adjusted Close prices are sourced from Yahoo Finance.

Cryptocurrency (BTC, ETH)

Yahoo Finance/Kraken

Sourced from Yahoo Finance. Historical data prior to 2015 is based on Kraken exchange data.

Inflation (CPI)

FRED

Official Consumer Price Index (CPI) data is sourced from FRED (Federal Reserve Economic Data).

Exchange Rates

FRED/TradingView

Primary exchange rate data comes from FRED. Missing historical data is supplemented using TradingView.

⚠️ Key Assumptions & Limitations

Included: Expense Ratios

Expense ratios of ETFs are naturally incorporated into the historical price data.

Excluded: Transaction Costs & Taxes

Trading fees, spread costs, FX conversion fees, and taxes (Capital Gains, Dividend Tax) are NOT included.

Assumption: Instant Reinvestment

Dividends are assumed to be reinvested immediately upon receipt. No cash drag from delayed reinvestment.

🧩 Assumption: Fractional Shares

We assume every penny is invested. In reality, you may need to buy whole shares, leaving some cash uninvested.

🧾 Reference: ETF Expense Ratios

The following expense ratios are reflected in the historical data (as of Jan 2026).

TickerNameExpense Ratio
SPYSPDR S&P 500 ETF Trust0.0945%
QQQInvesco QQQ Trust0.20%
ACWIiShares MSCI ACWI ETF0.32%
SCHDSchwab US Dividend Equity ETF0.06%
VYMVanguard High Dividend Yield ETF0.06%
JEPQJPMorgan Nasdaq Equity Premium Income ETF0.35%
SOXXiShares Semiconductor ETF0.35%
XLKTechnology Select Sector SPDR Fund0.09%
XLEEnergy Select Sector SPDR Fund0.09%
VGKVanguard FTSE Europe ETF0.06%
EWGiShares MSCI Germany ETF0.50%
EWJiShares MSCI Japan ETF0.49%
EWYiShares MSCI South Korea ETF0.59%
EWTiShares MSCI Taiwan ETF0.59%
MCHIiShares MSCI China ETF0.59%
GLDSPDR Gold Shares0.40%
SLViShares Silver Trust0.50%