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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

Rank 20 of 53

0.05%
0.00%0.94%
Dividend Yield

Rank 25 of 53

1.68%
0.00%2.83%
10Y Annualized Return

Rank 16 of 53

12.63%
4.75%39.53%
Sharpe Ratio

Rank 24 of 53

1.69
0.432.39
Maximum Drawdown

Rank 46 of 53

-31.07%
-38.24%-10.21%

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 $34,428 for a total return of roughly 244.28%. All prices are adjusted for splits and dividends. The portfolio is rebalanced Quarterly


Second Grader's Starter Portfolio
Benchmark (S&P 500)
Portfolio components

Second Grader's Starter PortfolioReturns

As of Nov 27, 2021, the Second Grader's Starter Portfolio returned 14.45% Year-To-Date and 12.63% of annualized return in the last 10 years.


1M6MYTD1Y5Y10Y
Benchmark0.43%9.37%22.33%26.59%15.74%14.46%
Second Grader's Starter Portfolio-1.27%4.06%14.45%18.86%14.00%12.63%
VTI
Vanguard Total Stock Market ETF
0.12%9.07%22.41%27.57%17.66%16.64%
BND
Vanguard Total Bond Market ETF
0.29%0.94%-1.73%-1.23%3.77%2.89%
VEU
Vanguard FTSE All-World ex-US ETF
-4.61%-4.58%4.79%9.08%9.61%7.53%

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 1.69. A Sharpe ratio greater than 1.0 is considered acceptable.

The chart below displays rolling 12-month Sharpe Ratio.


Second Grader's Starter Portfolio
Benchmark (S&P 500)
Portfolio components

Second Grader's Starter PortfolioDividends

Second Grader's Starter Portfolio granted a 1.68% dividend yield in the last twelve months, as of Nov 27, 2021.


PeriodTTM20202019201820172016201520142013201220112010

Dividend yield

1.68%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

The Drawdowns chart displays portfolio losses from any high point along the way.


Second Grader's Starter Portfolio
Benchmark (S&P 500)
Portfolio components

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 Second Grader's Starter Portfolio 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

Current Second Grader's Starter Portfolio volatility is 12.48%. The chart below shows the rolling 10-day volatility. Volatility is a statistical measure showing how big price swings are in either direction. The higher asset volatility, the riskier it is, because the price movements are less predictable.


Second Grader's Starter Portfolio
Benchmark (S&P 500)
Portfolio components

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