Second Grader's Starter Portfolio
Second Grader's Starter Portfolio is a lazy portfolio by Paul Farrell. It is designed as a simple portfolio to follow for beginner investors with small capital and long investment horizon. Farrell gives an example of a second-grader who received a $10,000 gift from his grandmother.
Asset Allocation
| Position | Category/Sector | Weight |
|---|---|---|
BND Vanguard Total Bond Market ETF | Total Bond Market | 10% |
VEU Vanguard FTSE All-World ex-US ETF | Foreign Large Cap Equities | 30% |
VTI Vanguard Total Stock Market ETF | Large Cap Growth Equities | 60% |
Performance
Performance Chart
The chart shows the growth of an initial investment of $10,000 in Second Grader's Starter Portfolio, comparing it to the performance of the S&P 500 index or another benchmark. All prices have been adjusted for splits and dividends. The portfolio is rebalanced Quarterly
The earliest data available for this chart is Apr 10, 2007, corresponding to the inception date of BND
Returns By Period
As of May 18, 2024, the Second Grader's Starter Portfolio returned 8.88% Year-To-Date and 9.14% of annualized return in the last 10 years.
| Year-To-Date | 1 month | 6 months | 1 year | 5 years (annualized) | 10 years (annualized) | |
|---|---|---|---|---|---|---|
^GSPC S&P 500 | 11.18% | 5.60% | 17.48% | 26.33% | 13.16% | 10.99% |
| Second Grader's Starter Portfolio | 8.88% | 6.10% | 15.73% | 21.52% | 11.02% | 9.07% |
| Portfolio components: | ||||||
VTI Vanguard Total Stock Market ETF | 10.96% | 6.12% | 18.48% | 28.24% | 14.39% | 12.37% |
BND Vanguard Total Bond Market ETF | -1.21% | 1.88% | 3.44% | 2.20% | 0.12% | 1.27% |
VEU Vanguard FTSE All-World ex-US ETF | 8.11% | 7.50% | 14.36% | 15.14% | 7.43% | 4.68% |
Monthly Returns
The table below presents the monthly returns of Second Grader's Starter Portfolio, with color gradation from worst to best to easily spot seasonal factors. Returns are adjusted for dividends.
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | Total | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2024 | 0.15% | 4.01% | 3.06% | -3.60% | 8.88% | ||||||||
| 2023 | 7.09% | -3.03% | 2.74% | 1.27% | -0.88% | 5.41% | 3.32% | -2.55% | -4.15% | -2.70% | 8.57% | 5.01% | 20.85% |
| 2022 | -4.56% | -2.52% | 1.49% | -7.81% | 0.44% | -7.38% | 6.85% | -3.83% | -8.85% | 5.76% | 7.38% | -4.24% | -17.53% |
| 2021 | -0.17% | 2.36% | 2.60% | 3.88% | 1.23% | 1.44% | 0.74% | 2.16% | -3.79% | 4.83% | -2.14% | 3.35% | 17.39% |
| 2020 | -0.86% | -6.60% | -12.85% | 10.18% | 4.74% | 2.74% | 4.78% | 5.54% | -2.70% | -1.84% | 10.98% | 4.56% | 17.26% |
| 2019 | 7.51% | 2.64% | 1.34% | 3.21% | -5.38% | 6.12% | 0.32% | -1.70% | 1.84% | 2.33% | 2.58% | 2.93% | 25.75% |
| 2018 | 4.72% | -3.97% | -1.25% | 0.36% | 1.10% | -0.18% | 2.86% | 1.42% | 0.19% | -7.02% | 1.71% | -6.75% | -7.30% |
| 2017 | 2.38% | 2.65% | 0.93% | 1.34% | 1.60% | 0.72% | 2.18% | 0.37% | 1.97% | 1.89% | 2.00% | 1.37% | 21.19% |
| 2016 | -4.99% | -0.64% | 6.78% | 1.07% | 0.80% | 0.15% | 3.72% | 0.30% | 0.60% | -1.92% | 1.79% | 1.82% | 9.43% |
| 2015 | -1.40% | 5.04% | -1.07% | 1.76% | 0.40% | -1.96% | 1.02% | -6.00% | -2.83% | 6.77% | -0.07% | -2.05% | -1.05% |
| 2014 | -3.49% | 4.63% | 0.43% | 0.56% | 1.94% | 2.08% | -1.67% | 2.90% | -2.76% | 1.78% | 1.49% | -1.15% | 6.61% |
| 2013 | 3.92% | 0.42% | 2.62% | 2.19% | 0.26% | -2.09% | 4.89% | -2.51% | 4.74% | 3.64% | 1.71% | 2.04% | 23.76% |
Expense Ratio
Second Grader's Starter Portfolio has an expense ratio of 0.04% which is considered to be low. Below you can find the expense ratios of portfolio funds side-by-side and effortlessly compare their relative costs.
Risk-Adjusted Performance
Risk-Adjusted Performance Rank
The current rank of Second Grader's Starter Portfolio is 42, suggesting that the investment has average results relative to other portfolios in terms of risk-adjusted performance. This ranking is determined by the cumulative values of the indicators listed below.
Second Grader's Starter Portfolio
Risk-Adjusted Performance Indicators
This table presents a comparison of risk-adjusted performance metrics for positions. Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
| Sharpe ratio | Sortino ratio | Omega ratio | Calmar ratio | Martin ratio | |
|---|---|---|---|---|---|
VTI Vanguard Total Stock Market ETF | 2.46 | 3.44 | 1.42 | 2.05 | 9.15 |
BND Vanguard Total Bond Market ETF | 0.23 | 0.37 | 1.04 | 0.08 | 0.65 |
VEU Vanguard FTSE All-World ex-US ETF | 1.22 | 1.79 | 1.22 | 0.85 | 3.68 |
Dividends
Dividend yield
Second Grader's Starter Portfolio granted a 2.12% dividend yield in the last twelve months.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Second Grader's Starter Portfolio | 2.12% | 2.17% | 2.19% | 1.85% | 1.67% | 2.27% | 2.49% | 2.08% | 2.29% | 2.33% | 2.39% | 2.12% |
| Portfolio components: | ||||||||||||
VTI Vanguard Total Stock Market ETF | 1.35% | 1.44% | 1.66% | 1.21% | 1.42% | 1.78% | 2.04% | 1.71% | 1.92% | 1.98% | 1.76% | 1.74% |
BND Vanguard Total Bond Market ETF | 3.36% | 3.09% | 2.60% | 1.97% | 2.22% | 2.72% | 2.81% | 2.54% | 2.51% | 2.57% | 2.79% | 2.78% |
VEU Vanguard FTSE All-World ex-US ETF | 3.25% | 3.32% | 3.12% | 3.08% | 2.00% | 3.10% | 3.27% | 2.66% | 2.96% | 2.95% | 3.52% | 2.66% |
Drawdowns
Drawdowns Chart
The Drawdowns chart displays portfolio losses from any high point along the way.
Worst Drawdowns
The table below displays the maximum drawdowns of the Second Grader's Starter Portfolio. A maximum drawdown is a measure of risk, indicating the largest reduction in portfolio value due to a series of losing trades.
The maximum drawdown for the Second Grader's Starter Portfolio was 52.66%, occurring on Mar 9, 2009. Recovery took 884 trading sessions.
The current Second Grader's Starter Portfolio drawdown is 0.08%.
Depth | Start | To Bottom | Bottom | To Recover | End | Total |
|---|---|---|---|---|---|---|
| -52.66% | Nov 1, 2007 | 339 | Mar 9, 2009 | 884 | Sep 7, 2012 | 1223 |
| -31.07% | Feb 13, 2020 | 27 | Mar 23, 2020 | 99 | Aug 12, 2020 | 126 |
| -25.11% | Nov 9, 2021 | 235 | Oct 14, 2022 | 322 | Jan 29, 2024 | 557 |
| -16.87% | Jan 29, 2018 | 229 | Dec 24, 2018 | 81 | Apr 23, 2019 | 310 |
| -16.3% | May 22, 2015 | 183 | Feb 11, 2016 | 126 | Aug 11, 2016 | 309 |
Volatility
Volatility Chart
The current Second Grader's Starter Portfolio volatility is 2.98%, representing the average percentage change in the investments's value, either up or down over the past month. The chart below shows the rolling one-month volatility.
Diversification
Asset Correlations Table
| BND | VEU | VTI | |
|---|---|---|---|
| BND | 1.00 | -0.13 | -0.17 |
| VEU | -0.13 | 1.00 | 0.84 |
| VTI | -0.17 | 0.84 | 1.00 |