https://pressroom.vanguard.com/content/ ... raging.pdf
If you scroll down to Figure 3, it says:
If I am reading that correctly, then positive values in Figure 3 should correspond to cases in which DCA outperformed LSI, and negative values should correspond to cases in which LSI outperformed DCA, because, according to my reasoning:The figures represent rankings of LSI balances subtracted from DCA balances. At the 5th-percentile level, for example, 5% of the resulting amounts were lower than the amount listed and 95% were higher.
Code: Select all
DCA - LSI > 0 when DCA > LSI DCA - LSI < 0 when DCA < LSI
Based on the caption they included for Figure 3 and that I included above, a positive value in the table should correspond to cases in which DCA outperformed LSI, because DCA - LSI > 0 when DCA > LSI. Yet this contradicts the second statement I quoted that says "The 50th percentile observation is positive (confirming LSI's average outperformance)".The 50th percentile observation is positive (confirming LSI's average outperformance)
Is the caption that goes with the table a typo?