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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


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


0.00%50.00%100.00%150.00%200.00%250.00%20122014201620182020
224.34%
264.42%
S&P 500

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.


1MYTD6M1Y5Y10Y
Second Grader's Starter Portfolio2.58%7.82%18.68%47.35%14.38%10.69%
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%

Second Grader's Starter PortfolioSharpe Ratio Chart

The Sharpe ratio shows whether the portfolio's excess returns are due to smart investment decisions or a result of taking a higher risk. The higher a portfolio's Sharpe ratio, the better its risk-adjusted performance.

The current Second Grader's Starter Portfolio Sharpe ratio is 2.95. A Sharpe ratio higher than 2.0 is considered very good.

The chart below displays rolling 12-month Sharpe Ratio.


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.


PeriodTTM20202019201820172016201520142013201220112010
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, 202027Mar 23, 202099Aug 12, 2020126
-20.16%May 2, 2011108Oct 3, 2011115Mar 19, 2012223
-16.85%Jan 29, 2018229Dec 24, 201881Apr 23, 2019310
-16.3%May 22, 2015183Feb 11, 2016126Aug 11, 2016309
-13.91%Apr 16, 201055Jul 2, 201071Oct 13, 2010126
-10.54%Mar 27, 201247Jun 1, 201267Sep 6, 2012114
-8.61%Jan 20, 201014Feb 8, 201025Mar 16, 201039
-7.59%Sep 8, 201429Oct 16, 201426Nov 21, 201455
-7.17%May 22, 201323Jun 24, 201319Jul 22, 201342
-7.06%Sep 3, 202014Sep 23, 202031Nov 5, 202045

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.


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