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Second Grader's Starter Portfolio

Last updated Dec 3, 2022

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 21 of 54

0.04%
0.00%0.94%
Dividend Yield

Rank 24 of 54

2.19%
0.00%4.45%
10Y Annualized Return

Rank 16 of 54

10.46%
3.67%55.26%
Sharpe Ratio

Rank 16 of 54

-0.50
-1.010.60
Maximum Drawdown

Rank 41 of 54

-32.89%
-91.88%-19.55%

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 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


-10.00%-5.00%0.00%5.00%JulyAugustSeptemberOctoberNovemberDecember
-1.10%
-1.21%
Second Grader's Starter Portfolio
Benchmark (^GSPC)
Portfolio components

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.


1M6MYTD1Y5Y10Y
Benchmark5.59%-2.52%-14.57%-9.78%9.04%11.20%
Second Grader's Starter Portfolio7.52%-2.28%-13.64%-9.90%7.08%9.42%
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%

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 -0.50. 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.


-1.20-1.00-0.80-0.60-0.40-0.200.00JulyAugustSeptemberOctoberNovemberDecember
-0.54
-0.46
Second Grader's Starter Portfolio
Benchmark (^GSPC)
Portfolio components

Second Grader's Starter PortfolioDividends

Second Grader's Starter Portfolio granted a 2.19% dividend yield in the last twelve months.


PeriodTTM202120202019201820172016201520142013201220112010

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.


-25.00%-20.00%-15.00%-10.00%-5.00%0.00%2022FebruaryMarchAprilMayJuneJulyAugustSeptemberOctoberNovemberDecember
-14.39%
-15.11%
Second Grader's Starter Portfolio
Benchmark (^GSPC)
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
-25.11%Nov 9, 2021235Oct 14, 2022
-20.16%May 2, 2011108Oct 3, 2011115Mar 19, 2012223
-16.87%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

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.


10.00%15.00%20.00%25.00%30.00%35.00%JulyAugustSeptemberOctoberNovemberDecember
17.27%
20.47%
Second Grader's Starter Portfolio
Benchmark (^GSPC)
Portfolio components