Asset Allocation
| Position | Category/Sector | Target Weight |
|---|---|---|
VTI Vanguard Total Stock Market ETF | Large Cap Blend Equities | 60% |
VEU Vanguard FTSE All-World ex-US ETF | Foreign Large Cap Equities | 30% |
BND Vanguard Total Bond Market ETF | Total Bond Market | 10% |
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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 Every 3 months.
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Returns By Period
As of Jun 5, 2026, the Second Grader's Starter Portfolio returned 11.63% Year-To-Date and 12.30% of annualized return in the last 10 years.
| Position | 1D | 1M | YTD | 6M | 1Y | 3Y* | 5Y* | 10Y* |
|---|---|---|---|---|---|---|---|---|
Benchmark S&P 500 Index | 0.41% | 4.48% | 10.79% | 10.60% | 27.02% | 21.07% | 12.39% | 13.65% |
Portfolio Second Grader's Starter Portfolio | 0.34% | 3.95% | 11.63% | 12.18% | 27.27% | 19.92% | 10.45% | 12.30% |
| Portfolio components: | ||||||||
BND Vanguard Total Bond Market ETF | 0.14% | 0.23% | 0.41% | 0.44% | 4.60% | 4.01% | 0.11% | 1.61% |
VEU Vanguard FTSE All-World ex-US ETF | 0.15% | 3.74% | 14.77% | 17.23% | 31.73% | 19.86% | 8.71% | 9.88% |
VTI Vanguard Total Stock Market ETF | 0.47% | 4.59% | 11.72% | 11.43% | 28.79% | 22.37% | 12.80% | 15.04% |
Monthly Returns
Based on dividend-adjusted daily data since Apr 11, 2007, Second Grader's Starter Portfolio's average daily return is +0.04%, while the average monthly return is +0.78%. At this rate, an investment would double in approximately 7.4 years.
Historically, 65% of months were positive and 35% were negative. The best month was Nov 2020 with a return of +11.0%, while the worst month was Oct 2008 at -17.7%. The longest winning streak lasted 15 consecutive months, and the longest losing streak was 6 months.
On a daily basis, Second Grader's Starter Portfolio closed higher 55% of trading days. The best single day was Oct 13, 2008 with a return of +12.1%, while the worst single day was Mar 16, 2020 at -9.9%.
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | Total | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2026 | 2.67% | 1.47% | -5.66% | 8.60% | 4.33% | 0.24% | 11.63% | ||||||
| 2025 | 2.90% | -0.30% | -3.30% | 0.42% | 5.07% | 4.40% | 1.07% | 2.76% | 3.19% | 1.93% | 0.35% | 0.72% | 20.66% |
| 2024 | 0.15% | 4.01% | 3.06% | -3.60% | 4.20% | 1.76% | 2.13% | 2.20% | 2.12% | -2.05% | 4.08% | -2.78% | 15.93% |
| 2023 | 7.09% | -3.03% | 2.74% | 1.27% | -0.88% | 5.40% | 3.32% | -2.55% | -4.15% | -2.70% | 8.57% | 5.01% | 20.84% |
| 2022 | -4.56% | -2.52% | 1.49% | -7.81% | 0.44% | -7.37% | 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% | 3.36% | 17.41% |
Benchmark Metrics
Second Grader's Starter Portfolio has an annualized alpha of 0.51%, beta of 0.88, and R2 of 0.96 versus S&P 500 Index. Calculated based on daily prices since April 11, 2007.
- This portfolio participated in 92.43% of S&P 500 Index downside but only 90.87% of its upside - more exposed to losses than it benefited from rallies.
- With beta of 0.88 and R2 of 0.96, this portfolio moves broadly in line with S&P 500 Index - much of its variation is explained by market exposure rather than independent behavior.
- Alpha
- 0.51%
- Beta
- 0.88
- R²
- 0.96
- Upside Capture
- 90.87%
- Downside Capture
- 92.43%
Expense Ratio
Second Grader's Starter Portfolio has an expense ratio of 0.03%, which is considered low. Below, you can find the expense ratios of the portfolio's funds side by side and easily compare their relative costs.
Return for Risk
Risk / Return Rank
Second Grader's Starter Portfolio ranks 51 for risk / return — on par with similar Portfolios. You're getting a typical balance of risk and reward. Not a standout, but not a red flag either — a reasonable choice if other factors align with your goals.
Return / Risk — by metrics
The table below presents risk-adjusted performance metrics for Second Grader's Starter Portfolio and compares them with S&P 500 Index.
| Portfolio | Benchmark | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | 2.38 | 2.28 | +0.09 |
| Sortino ratioReturn per unit of downside risk | 3.32 | 3.12 | +0.19 |
| Omega ratioGain probability vs. loss probability | 1.43 | 1.41 | +0.02 |
| Calmar ratioReturn relative to maximum drawdown | 3.12 | 2.98 | +0.13 |
| Martin ratioReturn relative to average drawdown | 13.94 | 13.78 | +0.16 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
How much return does each position deliver for the risk it carries? Higher values mean better reward for the risk taken.
| Position | Risk / Return Rank | Sharpe ratio | Sortino ratio | Omega ratio | Calmar ratio | Martin ratio |
|---|---|---|---|---|---|---|
BND Vanguard Total Bond Market ETF | 35 | 1.24 | 1.84 | 1.22 | 1.73 | 5.21 |
VEU Vanguard FTSE All-World ex-US ETF | 62 | 2.09 | 2.89 | 1.38 | 2.79 | 10.84 |
VTI Vanguard Total Stock Market ETF | 73 | 2.38 | 3.24 | 1.43 | 3.24 | 14.94 |
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Dividends
Dividend yield
Second Grader's Starter Portfolio provided a 1.78% dividend yield over the last twelve months.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Portfolio | 1.78% | 1.98% | 2.10% | 2.17% | 2.19% | 1.86% | 1.69% | 2.27% | 2.49% | 2.08% | 2.29% | 2.33% |
| Portfolio components: | ||||||||||||
BND Vanguard Total Bond Market ETF | 3.96% | 3.86% | 3.67% | 3.09% | 2.60% | 2.12% | 2.38% | 2.72% | 2.81% | 2.54% | 2.51% | 2.57% |
VEU Vanguard FTSE All-World ex-US ETF | 2.60% | 3.09% | 3.24% | 3.32% | 3.12% | 3.08% | 2.00% | 3.10% | 3.27% | 2.66% | 2.96% | 2.95% |
VTI Vanguard Total Stock Market ETF | 1.01% | 1.12% | 1.27% | 1.44% | 1.66% | 1.21% | 1.42% | 1.78% | 2.04% | 1.71% | 1.92% | 1.98% |
Drawdowns
Drawdowns Chart
The Drawdowns chart displays portfolio losses from any high point along the way. Drawdowns are calculated considering price movements and all distributions paid, if any.
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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 0.41%.
Related event | Drawdown | Fall | Recovery | Underwater |
|---|---|---|---|---|
Financial crisis2007–2009 | -52.66%Mar 2009 | 1y 4mo | 3y 6mo | 4y 10moNov 2007 - Sep 2012 |
COVID crash2020 | -31.07%Mar 2020 | 1mo 9d | 4mo 22d | 6mo 1dFeb 2020 - Aug 2020 |
Bear market2022 | -25.10%Oct 2022 | 11mo 9d | 1y 3mo | 2y 2moNov 2021 - Jan 2024 |
Rate-hike selloffLate 2018 | -16.87%Dec 2018 | 10mo 29d | 4mo | 1y 2moJan 2018 - Apr 2019 |
2016 correction2016 | -16.30%Feb 2016 | 8mo 25d | 6mo 2d | 1y 2moMay 2015 - Aug 2016 |
Volatility
Volatility Chart
The chart below shows the rolling one-month volatility.
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Diversification
AI Analysis
Thesis
The portfolio is a classic global stock-and-bond mix: mostly equities through Vanguard Total Stock Market ETF (VTI) and Vanguard FTSE All-World ex-U.S. ETF (VEU), with a small stabilizer in Vanguard Total Bond Market ETF (BND). It is, in some sense, a bet that geography matters more than factor separation.
The numbers
- The diversification ratio is 1.06 in the most recent window and sits at the 9th percentile on the platform, which is what low incremental diversification benefit looks like in practice.
- Effective assets are 2.17 of 3, so the portfolio is spread across three tickers but only a little more than two independent bets.
- VTI and VEU correlate at 0.83, while BND is only mildly negative to both, which means the bond sleeve is doing most of the actual diversification work.
What works
- The bond sleeve is genuinely distinct: BND’s correlation with equities is negative, so it still helps when stock risk is the thing misbehaving.
- VTI and VEU give broad market coverage across U.S. and non-U.S. equities, which is a clean way to express global equity exposure without a pile of sector bets.
What does not
- VTI and VEU live in the same risk family, so the equity sleeves mostly rise and fall together when global growth, earnings, or valuation multiples reset.
- The portfolio’s low DR across 1Y to Incept says the correlations are not just a short-term coincidence; the structure has been persistently modest.
Stress Scenario
- A synchronized equity drawdown driven by recession, policy tightening, or a broad repricing of duration-sensitive growth assets would likely leave VTI and VEU behaving as one position, with BND only partially offsetting the move.
Worth knowing
- Portfolios with this correlation profile usually get most of their diversification from the bond sleeve, not from splitting equity capital across U.S. and foreign markets.
- The asset cluster result is doing the honest thing: it treats VTI and VEU as one equity block, and BND as the separate idea.
Diversification Metrics
Number of Effective Assets
The portfolio contains 3 assets, with an effective number of assets of 2.17, reflecting the diversification based on asset allocation. Your capital is well-distributed across most of your holdings, with only mild concentration in a few names. True diversification also depends on the correlations between assets — check the diversification ratio below.
Diversification Ratio
1Y | 3Y | 5Y | 10Y | All Time | |
|---|---|---|---|---|---|
Diversification Ratio | 1.06 | 1.08 | 1.07 | 1.06 | 1.06 |
The portfolio has a diversification ratio of 1.06, placing it in the bottom quartile across portfolios — positions are highly correlated. Consider adding assets from different classes or sectors to reduce risk.
Second Grader's Starter Portfolio correlation to the S&P 500 Index
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.96 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.96 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.96 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.96 |
Correlation (All Time) Calculated using the full available price history since Apr 11, 2007 | 0.97 |
Benchmark Correlations
Correlation vs. S&P 500 Index. VTI has the highest benchmark correlation at 0.99, while BND has the lowest at -0.14.
Asset Correlations Table
Find what Second Grader's Starter Portfolio is missing
See which holdings overlap, where Second Grader's Starter Portfolio is concentrated, and which low-correlation assets could fill the gaps.
Analyze Diversification