Growth-focused portfolio with heavy reliance on US equities and technology sector

Report created on Aug 15, 2025

Risk profile

  • Secure
    Speculative

The risk profile, derived from past market volatility, reflects the level of risk the portfolio is exposed to. This assessment helps align your investments with your financial goals and comfort with market fluctuations.

Diversification profile

  • Focused
    Diversified

The diversification assessment evaluates the spread of investments across asset classes, regions, and sectors. This ensures a balanced mix, reducing risk and maximizing returns by not concentrating in any single area.

Positions

The portfolio is heavily weighted towards US equity funds, with a significant 80% in the Fidelity 500 Index Fund, 10% in the Fidelity NASDAQ Composite Index Fund, and a 10% allocation to the Fidelity Zero International Index Fund. This composition indicates a strong focus on US markets and large-cap stocks, given the nature of the funds involved. The portfolio's diversification is moderate, leaning heavily on the technology sector. While this sectoral concentration has historically provided robust returns, it also exposes the portfolio to sector-specific risks.

Growth Info

Historically, the portfolio has achieved a Compound Annual Growth Rate (CAGR) of 15.03%, with a significant drawdown of -33.39%. The days contributing to 90% of returns number just 19, highlighting the volatility and the impact of short-term gains. This performance suggests a high growth potential but comes with considerable risk, as evidenced by the large drawdown. Investors should be prepared for similar volatility in the future, given the portfolio's composition and market focus.

Projection Info

Monte Carlo simulations, which use historical data to project future outcomes, suggest a wide range of potential performances for this portfolio. With a median projected increase of 439.5% and 982 out of 1,000 simulations showing positive returns, the forward outlook seems promising. However, it's crucial to remember that such projections are speculative and depend heavily on past market behaviors, which may not always predict future movements accurately.

Asset classes Info

  • Stocks
    100%

The portfolio is entirely allocated to stocks, with no diversification into other asset classes like bonds, real estate, or commodities. This single-asset class approach maximizes exposure to stock market growth but also to its downturns. Diversifying across different asset classes can reduce risk and smooth out returns over time, especially during stock market volatility.

Sectors Info

  • Technology
    33%
  • Financials
    14%
  • Consumer Discretionary
    11%
  • Telecommunications
    10%
  • Health Care
    9%
  • Industrials
    8%
  • Consumer Staples
    6%
  • Energy
    3%
  • Utilities
    2%
  • Basic Materials
    2%
  • Real Estate
    2%

With a 33% allocation to technology, followed by financial services and consumer cyclicals, the portfolio is positioned to benefit from growth in these sectors. However, this concentration also increases vulnerability to sector-specific downturns. Diversifying across a broader range of sectors could mitigate this risk and potentially uncover opportunities in underrepresented areas.

Regions Info

  • North America
    90%
  • Europe Developed
    5%
  • Japan
    2%
  • Asia Emerging
    1%
  • Asia Developed
    1%

The geographic allocation is heavily skewed towards North America (90%), with minimal exposure to international markets. This concentration benefits from the strength of the US economy and stock market but limits potential gains from global diversification. Expanding into more developed and emerging international markets could offer growth opportunities and risk mitigation.

Market capitalization Info

  • Mega-cap
    48%
  • Large-cap
    33%
  • Mid-cap
    17%
  • Small-cap
    1%

The portfolio's market capitalization exposure is predominantly in mega (48%) and big (33%) cap stocks, with a smaller presence in medium and minimal in small caps. This skew towards larger companies is typical for growth-oriented portfolios but may limit exposure to the potentially higher growth rates of smaller companies. Considering a more balanced market cap distribution could provide a better risk-return profile.

Risk vs. return

This chart shows the Efficient Frontier, calculated using your current assets with different allocation combinations. It highlights the best balance between risk and return based on historical data. "Efficient" portfolios maximize returns for a given risk or minimize risk for a given return. Portfolios below the curve are less efficient. This is informational and not a recommendation to buy or sell any assets.

Click on the colored dots to explore allocations.

Considering the portfolio's current composition, there's potential for optimization towards the Efficient Frontier, where the risk-return ratio is maximized. This might involve rebalancing between the current assets to achieve a more efficient allocation. However, any optimization should also consider the investor's risk tolerance, investment horizon, and financial goals, beyond merely adjusting for theoretical efficiency.

Dividends Info

  • FIDELITY NASDAQ COMPOSITE INDEX FUND FIDELITY NASDAQ COMPOSITE INDEX FUND 0.50%
  • Fidelity 500 Index Fund 0.90%
  • FIDELITY ZERO INTERNATIONAL INDEX FUND 2.40%
  • Weighted yield (per year) 1.01%

The overall dividend yield of the portfolio stands at 1.01%, with the highest yield from the Fidelity Zero International Index Fund at 2.40%. While the focus on growth stocks often means lower dividend yields, dividends can provide a steady income stream and contribute to total returns, especially in volatile or declining markets. Reviewing the balance between growth and income-generating investments could enhance long-term returns.

Ongoing product costs Info

  • FIDELITY NASDAQ COMPOSITE INDEX FUND FIDELITY NASDAQ COMPOSITE INDEX FUND 0.29%
  • Fidelity 500 Index Fund 0.02%
  • Weighted costs total (per year) 0.04%

The portfolio benefits from low costs, with a Total Expense Ratio (TER) of 0.04%. Keeping investment costs low is crucial for enhancing long-term returns, as even small differences in fees can compound into significant impacts over time. This low-cost approach aligns with best practices for maximizing investment efficiency.

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