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.
- Expense Ratio
- 0.05%
- Dividend Yield
- 1.62%
Second Grader's Starter PortfolioAsset Allocation
| Position | Category/Sector | Weight |
|---|---|---|
BND Vanguard Total Bond Market ETF | Total Bond Market | 10% |
VTI Vanguard Total Stock Market ETF | Large Cap Growth Equities | 60% |
VEU Vanguard FTSE All-World ex-US ETF | Foreign Large Cap Equities | 30% |
Second Grader's Starter PortfolioPerformance
The chart shows the growth of $10,000 invested in Second Grader's Starter Portfolio on Jan 5, 2010 and compares it to the S&P 500 index or another benchmark. It would be worth nearly $32,434 for a total return of roughly 224.34%. All prices are adjusted for splits and dividends. The portfolio is rebalanced Quarterly
Second Grader's Starter PortfolioReturns
As of Apr 11, 2021, the Second Grader's Starter Portfolio returned 7.82% Year-To-Date and 10.69% of annualized return in the last 10 years.
| 1M | YTD | 6M | 1Y | 5Y | 10Y | |
|---|---|---|---|---|---|---|
| Second Grader's Starter Portfolio | 2.58% | 7.82% | 18.68% | 47.35% | 14.38% | 10.69% |
| Portfolio components: | ||||||
BND Vanguard Total Bond Market ETF | -0.02% | -3.16% | -2.23% | -0.64% | 3.22% | 3.39% |
VEU Vanguard FTSE All-World ex-US ETF | 1.03% | 6.47% | 19.99% | 48.45% | 10.87% | 5.35% |
VTI Vanguard Total Stock Market ETF | 3.80% | 10.39% | 21.66% | 56.14% | 17.75% | 14.36% |
| Returns over 1 year are annualized | ||||||
Second Grader's Starter PortfolioDividends
Second Grader's Starter Portfolio granted a 1.62% dividend yield in the last twelve months, as of Apr 11, 2021.
| Period | TTM | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 | 2010 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dividend yield | 1.62% | 1.69% | 2.27% | 2.51% | 2.12% | 2.29% | 2.33% | 2.39% | 2.12% | 2.39% | 2.54% | 2.09% |
Second Grader's Starter PortfolioDrawdowns Chart
Second Grader's Starter PortfolioWorst Drawdowns
The table below shows the maximum drawdowns of the Second Grader's Starter Portfolio. A maximum drawdown is an indicator of risk. It shows a reduction in portfolio value from its maximum due to a series of losing trades.
The maximum drawdown since January 2010 for the {{portfolioName}} is 31.07%, recorded on Mar 23, 2020. It took 99 trading sessions for the portfolio to recover.
Depth | Start | To Bottom | Bottom | To Recover | End | Total |
|---|---|---|---|---|---|---|
| -31.07% | Feb 13, 2020 | 27 | Mar 23, 2020 | 99 | Aug 12, 2020 | 126 |
| -20.16% | May 2, 2011 | 108 | Oct 3, 2011 | 115 | Mar 19, 2012 | 223 |
| -16.85% | 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 |
| -13.91% | Apr 16, 2010 | 55 | Jul 2, 2010 | 71 | Oct 13, 2010 | 126 |
| -10.54% | Mar 27, 2012 | 47 | Jun 1, 2012 | 67 | Sep 6, 2012 | 114 |
| -8.61% | Jan 20, 2010 | 14 | Feb 8, 2010 | 25 | Mar 16, 2010 | 39 |
| -7.59% | Sep 8, 2014 | 29 | Oct 16, 2014 | 26 | Nov 21, 2014 | 55 |
| -7.17% | May 22, 2013 | 23 | Jun 24, 2013 | 19 | Jul 22, 2013 | 42 |
| -7.06% | Sep 3, 2020 | 14 | Sep 23, 2020 | 31 | Nov 5, 2020 | 45 |
Second Grader's Starter PortfolioVolatility Chart
The chart below shows the rolling 10-day volatility of the Second Grader's Starter Portfolio. Volatility is a statistical measure showing how big price swings are in either direction. The higher portfolio volatility, the riskier it is, because the price movements are less predictable.