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.
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 in Jan 2010 and compares it to the S&P 500 index or another benchmark. It would be worth nearly $30,499 for a total return of roughly 204.99%. All prices are adjusted for splits and dividends. The portfolio is rebalanced Quarterly
Second Grader's Starter PortfolioReturns
As of Dec 3, 2022, the Second Grader's Starter Portfolio returned -14.22% Year-To-Date and 10.46% of annualized return in the last 10 years.
| 1M | 6M | YTD | 1Y | 5Y | 10Y | |
|---|---|---|---|---|---|---|
| Benchmark | 5.59% | -2.52% | -14.57% | -9.78% | 9.04% | 11.20% |
| Second Grader's Starter Portfolio | 7.52% | -2.28% | -13.64% | -9.90% | 7.08% | 9.42% |
| Portfolio components: | ||||||
VTI Vanguard Total Stock Market ETF | 5.46% | -1.68% | -14.55% | -10.04% | 10.30% | 12.95% |
BND Vanguard Total Bond Market ETF | 4.85% | -2.37% | -11.31% | -11.78% | 0.37% | 1.15% |
VEU Vanguard FTSE All-World ex-US ETF | 12.59% | -4.01% | -13.18% | -9.71% | 2.25% | 4.74% |
| Returns over 1 year are annualized | ||||||
Second Grader's Starter PortfolioDividends
Second Grader's Starter Portfolio granted a 2.19% dividend yield in the last twelve months.
| Period | TTM | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 | 2010 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dividend yield | 2.19% | 1.88% | 1.74% | 2.40% | 2.70% | 2.31% | 2.61% | 2.72% | 2.87% | 2.60% | 3.11% | 3.29% | 2.76% |
Second Grader's Starter PortfolioDrawdowns Chart
The Drawdowns chart displays portfolio losses from any high point along the way.
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, 2020 | 27 | Mar 23, 2020 | 99 | Aug 12, 2020 | 126 |
| -25.11% | Nov 9, 2021 | 235 | Oct 14, 2022 | — | — | — |
| -20.16% | May 2, 2011 | 108 | Oct 3, 2011 | 115 | Mar 19, 2012 | 223 |
| -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 |
| -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 |
Second Grader's Starter PortfolioVolatility Chart
Current Second Grader's Starter Portfolio volatility is 6.80%. 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.