PortfoliosLab logo

Second Grader's Starter Portfolio

Last updated Mar 25, 2023

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 22 of 55

0.04%
0.00%0.94%
Dividend Yield

Rank 25 of 55

2.48%
0.00%4.38%
10Y Annualized Return

Rank 18 of 55

8.39%
2.63%52.74%
Sharpe Ratio

Rank 18 of 55

-0.43
-0.920.71
Maximum Drawdown

Rank 48 of 55

-52.66%
-82.98%-16.15%

Asset Allocation


Performance

The chart shows the growth of $10,000 invested in Second Grader's Starter Portfolio in Oct 2022 and compares it to the S&P 500 index or another benchmark. It would be worth nearly $26,913 for a total return of roughly 169.13%. All prices are adjusted for splits and dividends. The portfolio is rebalanced Quarterly


140.00%150.00%160.00%170.00%180.00%190.00%NovemberDecember2023FebruaryMarch
169.13%
174.62%
Second Grader's Starter Portfolio
Benchmark (^GSPC)
Portfolio components

Returns

As of Mar 25, 2023, the Second Grader's Starter Portfolio returned 3.47% Year-To-Date and 8.39% of annualized return in the last 10 years.


1 monthYear-To-Date6 months1 year5 years (annualized)10 years (annualized)
Benchmark0.19%3.59%7.70%-12.45%8.78%9.76%
Second Grader's Starter Portfolio-0.10%3.67%10.25%-9.51%6.93%8.31%
VTI
Vanguard Total Stock Market ETF
-0.63%3.68%8.10%-11.95%9.89%11.33%
BND
Vanguard Total Bond Market ETF
2.28%2.65%3.36%-4.29%0.80%1.24%
VEU
Vanguard FTSE All-World ex-US ETF
0.17%3.97%16.76%-6.96%2.36%4.18%

Sharpe 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 -0.43. A negative Sharpe ratio means that the risk-free rate is higher than the portfolio's return. This value does not convey any meaningful information.

The chart below displays rolling 12-month Sharpe Ratio.


-1.20-1.00-0.80-0.60-0.40-0.20NovemberDecember2023FebruaryMarch
-0.47
-0.52
Second Grader's Starter Portfolio
Benchmark (^GSPC)
Portfolio components

Dividends

Second Grader's Starter Portfolio granted a 2.48% dividend yield in the last twelve months.


PeriodTTM20222021202020192018201720162015201420132012

Dividend yield

2.48%2.20%1.90%1.75%2.43%2.73%2.33%2.64%2.75%2.90%2.63%3.15%

Drawdowns Chart

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


-25.00%-20.00%-15.00%-10.00%NovemberDecember2023FebruaryMarch
-15.24%
-17.08%
Second Grader's Starter Portfolio
Benchmark (^GSPC)
Portfolio components

Worst 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 52.66%, recorded on Mar 9, 2009. It took 884 trading sessions for the portfolio to recover.


Depth

Start

To Bottom

Bottom

To Recover

End

Total

-52.66%Nov 1, 2007339Mar 9, 2009884Sep 7, 20121223
-31.07%Feb 13, 202027Mar 23, 202099Aug 12, 2020126
-25.11%Nov 9, 2021235Oct 14, 2022
-16.87%Jan 29, 2018229Dec 24, 201881Apr 23, 2019310
-16.3%May 22, 2015183Feb 11, 2016126Aug 11, 2016309
-9.15%Jul 16, 200724Aug 16, 200731Oct 1, 200755
-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
-6.13%Sep 17, 201242Nov 15, 201222Dec 18, 201264

Volatility Chart

Current Second Grader's Starter Portfolio volatility is 11.15%. 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.


10.00%15.00%20.00%25.00%30.00%35.00%NovemberDecember2023FebruaryMarch
15.51%
17.88%
Second Grader's Starter Portfolio
Benchmark (^GSPC)
Portfolio components