Value averaging (VA) is an investing strategy that works like dollar-cost averaging (DCA) in terms of making steady monthly contributions but differs in its approach to the amount of each monthly contribution. In value averaging, the investor sets a target growth rate or an amount of their asset base or portfolio each month and then adjusts the next month's contribution according to the relative gain or shortfall made on the original asset base.

Therefore, instead of investing a set amount each period, a VA strategy makes investments based on the total size of the portfolio at each interval.