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A portfolio that loves redundancy as much as it loves the US market

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.

What type of investor this portfolio is suitable for

Balanced Investors

This portfolio is perfect for the investor who thinks diversification means owning every color of the same shoe. It's for someone who loves the thrill of the stock market roller coaster but thinks Bitcoin is their "safe" play. This investor has a high risk tolerance, dreams of beating the market (without really understanding it), and probably thinks "bond" is just a character from their dad's favorite movies. Their investment horizon is as long as their memory—short, focusing on the highs and forgetting the lows until they hit.

Positions

  • Fidelity 500 Index Fund
    FXAIX - US3159117502
    60.00%
  • FIDELITY ZERO TOTAL MARKET INDEX FUND
    FZROX - US31635T7081
    20.00%
  • Vanguard U.S. Momentum Factor
    VFMO - US9219355081
    10.00%
  • Fidelity Wise Origin Bitcoin Trust
    FBTC - US3159481098
    5.00%
  • Vanguard Value Index Fund ETF Shares
    VTV - US9229087443
    5.00%

This portfolio seems to have been built on the principle of "if a little is good, a lot must be great," especially when it comes to giant US companies. With 60% in a Fidelity 500 Index Fund and another 20% in a Fidelity Zero Total Market Index Fund, it's like wearing two raincoats in a drizzle. The redundancy is palpable. It's like betting on the same horse twice, expecting it to win and place at the same time.

Warning Historical data is limited for this portfolio, which reduces the confidence in the calculated values.

Growth Info

With a CAGR of 23.60%, this portfolio might seem like it's on steroids at first glance. However, when you realize that 11 days are responsible for 90% of its returns, it starts to look less like a bodybuilder and more like someone who just found their dad's old weights in the basement. High volatility with such concentrated performance days suggests this portfolio dances on the edge of a knife. It's not about if it will cut you, but when.

Warning Due to limited historical data, this may show extreme values that are not realistic.

Projection Info

Monte Carlo simulations are like those weather forecasts that always seem to predict rain on your day off. In this case, they're forecasting a hurricane of wealth with a 50th percentile at a 4,639.9% return. But remember, Monte Carlo is based on historical data and assumptions that can be as reliable as a chocolate teapot. Considering the high correlation between major holdings, if the forecast is off, it might not just rain on your parade—it could wash it away.

Asset classes Info

  • Stocks
    95%
  • Other
    5%
  • Cash
    0%

A 95% allocation to stocks with a whimsical 5% nod to Bitcoin suggests a strategy built during a bull market happy hour. The absence of bonds, real estate (beyond a token 2%), or any meaningful cash position screams "YOLO" louder than a teenager with their first paycheck. This portfolio is riding the stock market wave on a surfboard made of optimism, seemingly unaware that waves eventually crash.

Sectors Info

  • Technology
    27%
  • Financials
    15%
  • Health Care
    11%
  • Telecommunications
    8%
  • Consumer Discretionary
    8%
  • Industrials
    8%
  • Consumer Staples
    6%
  • Energy
    4%
  • Utilities
    2%
  • Real Estate
    2%
  • Basic Materials
    2%
  • Consumer Discretionary
    1%

Technology at 27%? Groundbreaking. Not really, considering it's the default heavy weighting in most US indices. This portfolio's sector allocations read like a "Who's Who" of the S&P 500, with financial services and healthcare trailing the tech behemoth. It’s like going to a buffet and only hitting the dessert table—delicious but hardly balanced. And with zero love for international cuisine, it's missing out on some potentially delectable treats.

Regions Info

  • North America
    94%
  • Europe Developed
    0%
  • Asia Developed
    0%
  • Asia Emerging
    0%
  • Latin America
    0%
  • Africa/Middle East
    0%

With 94% in North America, this portfolio has a home bias thicker than a deep-dish pizza. It's as if the rest of the world doesn't exist. No developed Europe, no emerging Asia—just pure, unadulterated America. This might work in a world where the US is the only country, but last time we checked, there were about 195 others. Ignoring them is like refusing to acknowledge any music post-Beatles; you're missing out on a lot.

Market capitalization Info

  • Mega-cap
    38%
  • Large-cap
    32%
  • Mid-cap
    18%
  • Small-cap
    4%
  • Micro-cap
    2%

This portfolio loves the big boys, with a whopping 70% in mega and big caps. It's like a kid who only plays with the biggest toys, ignoring the fact that sometimes the most fun (and growth) comes from the smaller, more nimble ones. Sure, mega and big caps bring stability, but with only 6% in small and micro caps, it’s playing it safer than a game of tag with toddlers. Where's the sense of adventure?

Redundant positions Info

  • Fidelity 500 Index Fund
    FIDELITY ZERO TOTAL MARKET INDEX FUND
    High correlation

The portfolio's love affair with both the Fidelity 500 Index Fund and the Fidelity Zero Total Market Index Fund is like getting a burger and a cheeseburger and calling it a diversified meal. They're so highly correlated that in a market downturn, they'll both drop faster than a hot potato. Diversification doesn't mean owning five different types of vanilla ice cream; it's about mixing in some flavors that can withstand a bit of heat.

Dividends Info

  • Fidelity 500 Index Fund 0.90%
  • FIDELITY ZERO TOTAL MARKET INDEX FUND 1.10%
  • Vanguard U.S. Momentum Factor 0.90%
  • Vanguard Value Index Fund ETF Shares 2.20%
  • Weighted yield (per year) 0.96%

A total yield of 0.96% is like finding a dollar on the street—it's nice, but it's not going to change your life. The portfolio seems to treat dividends as an afterthought, like that gym membership you forgot you had. Sure, you're technically invested in it, but it's not doing much for your financial fitness. In a more balanced diet, dividends are the protein—they build strength and resilience over time.

Ongoing product costs Info

  • Fidelity Wise Origin Bitcoin Trust 0.25%
  • Fidelity 500 Index Fund 0.02%
  • Vanguard U.S. Momentum Factor 0.13%
  • Vanguard Value Index Fund ETF Shares 0.04%
  • Weighted costs total (per year) 0.04%

One bright spot in this portfolio is its low costs, with a Total Expense Ratio (TER) of 0.04%. It's like finding a discount on something you were going to buy anyway—a small win, but a win nonetheless. However, even the most frugal shopper can make questionable purchases. Low costs are great, but when your shopping cart is filled with redundant items, you have to wonder if you're really getting your money's worth.

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.

Talking about optimizing this portfolio is like trying to decide which deck chair on the Titanic offers the best view. Sure, you can shuffle around your holdings, but without addressing the fundamental issues of overconcentration and lack of true diversification, it's a bit like rearranging furniture when you should be calling for a lifeboat. Start by breaking up the love triangle between the Fidelity funds and consider inviting some international and alternative assets to the party.

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