Growth-oriented portfolio with a strong focus on large-cap stocks and moderate international exposure

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

Growth Investors

This portfolio suits an investor with a growth-oriented profile, comfortable with taking on higher levels of risk for the potential of substantial returns. The focus on large-cap stocks and the moderate international exposure cater to those looking for a blend of stability and growth opportunities. Ideal for individuals with a medium to long-term investment horizon, this portfolio aims to capitalize on the growth potential of leading sectors and geographies while accepting the volatility inherent in stock-heavy allocations.

Positions

  • FIDELITY ZERO LARGE CAP INDEX FUND
    FNILX - US3159116280
    60.00%
  • FIDELITY ZERO INTERNATIONAL INDEX FUND
    FZILX - US31635T6091
    10.00%
  • FIDELITY ZERO EXTENDED MARKET INDEX FUND
    FZIPX - US3159116363
    10.00%
  • JPMORGAN INTERNATIONAL VALUE FUND CLASS A
    JFEAX - US4812A05406
    10.00%
  • FIDELITY LARGE CAP GROWTH INDEX FUND INSTITUTIONAL PREMIUM CLASS
    FSPGX - US31635V7293
    5.00%
  • Invesco S&P 500® Momentum ETF
    SPMO - US46138E3392
    5.00%

This portfolio predominantly invests in large-cap stocks, evidenced by a 60% allocation to the FIDELITY ZERO LARGE CAP INDEX FUND and a 5% allocation to the FIDELITY LARGE CAP GROWTH INDEX FUND INSTITUTIONAL PREMIUM CLASS. The inclusion of international funds, such as the FIDELITY ZERO INTERNATIONAL INDEX FUND and the JPMORGAN INTERNATIONAL VALUE FUND CLASS A, each with a 10% stake, introduces a moderate level of global diversification. The presence of the Invesco S&P 500® Momentum ETF adds a dynamic component to the portfolio, targeting stocks with strong recent performance. This composition suggests a strategic balance between seeking growth through large-cap equities and mitigating risk with a sprinkle of international exposure.

Growth Info

Historically, this portfolio has achieved a Compound Annual Growth Rate (CAGR) of 13.90%, with a maximum drawdown of -34.65%. These metrics highlight the portfolio's ability to generate substantial growth, albeit with significant volatility. The days contributing most to returns indicate that a few key periods have driven the portfolio's performance. This historical performance, while impressive, underscores the importance of understanding the inherent volatility and the potential for wide fluctuations in value.

Projection Info

Using Monte Carlo simulations, the forward projection of this portfolio indicates a wide range of potential outcomes, with a median annualized return of 14.04%. The simulations, which run 1,000 different scenarios to anticipate future performance, suggest a strong likelihood of positive returns, with 959 simulations ending up in the green. However, the 5th percentile outcome at 6.1% growth warns of lower-bound scenarios where returns could be modest. These projections, while optimistic, are based on historical data and cannot guarantee future performance.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%
  • Other
    0%
  • Not Classified
    0%

The portfolio is almost entirely composed of stocks (99%), with a minimal cash holding (1%). This asset class allocation aligns with the portfolio's growth profile but also indicates a higher risk level due to the lack of diversification across different asset types. Including a broader range of asset classes could provide a buffer against stock market volatility and contribute to a more stable performance over time.

Sectors Info

  • Technology
    27%
  • Financials
    17%
  • Consumer Discretionary
    10%
  • Industrials
    10%
  • Telecommunications
    9%
  • Health Care
    9%
  • Consumer Staples
    5%
  • Energy
    4%
  • Basic Materials
    3%
  • Real Estate
    3%
  • Utilities
    2%
  • Consumer Discretionary
    1%

The sectoral allocation shows a heavy emphasis on Technology (27%) and Financial Services (17%), followed by Consumer Cyclical and Industrials (each at 10%). This concentration in high-growth sectors aligns with the portfolio's growth objectives but also exposes it to sector-specific risks. Diversifying across a wider range of sectors could help mitigate these risks while potentially capturing growth opportunities in other areas of the economy.

Regions Info

  • North America
    81%
  • Europe Developed
    11%
  • Japan
    4%
  • Asia Developed
    1%
  • Asia Emerging
    1%
  • Australasia
    1%
  • Africa/Middle East
    0%
  • Latin America
    0%
  • Europe Emerging
    0%

Geographically, the portfolio is heavily weighted towards North America (81%), with modest allocations to Europe Developed (11%) and Japan (4%). This concentration in developed markets, particularly the U.S., is typical for growth-oriented portfolios but limits exposure to emerging markets, which may offer higher growth potential. Expanding geographic diversification could enhance the portfolio's growth prospects and reduce its vulnerability to regional economic downturns.

Market capitalization Info

  • Mega-cap
    42%
  • Large-cap
    30%
  • Mid-cap
    18%
  • Small-cap
    7%
  • Micro-cap
    2%

The market capitalization breakdown reveals a focus on Mega (42%) and Big (30%) cap stocks, with a smaller presence in Medium (18%), Small (7%), and Micro (2%) caps. This skew towards larger companies is consistent with the portfolio's growth and stability aims but may limit exposure to the higher growth potential of smaller firms. A more balanced allocation across different market caps could improve diversification and potential returns.

Redundant positions Info

  • FIDELITY ZERO LARGE CAP INDEX FUND
    FIDELITY LARGE CAP GROWTH INDEX FUND INSTITUTIONAL PREMIUM CLASS
    High correlation

The portfolio contains highly correlated assets, particularly between the FIDELITY ZERO LARGE CAP INDEX FUND and the FIDELITY LARGE CAP GROWTH INDEX FUND INSTITUTIONAL PREMIUM CLASS. This redundancy limits diversification benefits and may not contribute to risk reduction. Identifying and eliminating overlapping investments could streamline the portfolio and enhance its efficiency.

Dividends Info

  • FIDELITY ZERO LARGE CAP INDEX FUND 1.00%
  • FIDELITY LARGE CAP GROWTH INDEX FUND INSTITUTIONAL PREMIUM CLASS 0.30%
  • FIDELITY ZERO INTERNATIONAL INDEX FUND 2.40%
  • FIDELITY ZERO EXTENDED MARKET INDEX FUND 1.20%
  • JPMORGAN INTERNATIONAL VALUE FUND CLASS A 3.20%
  • Invesco S&P 500® Momentum ETF 0.60%
  • Weighted yield (per year) 1.32%

The portfolio's dividend yield stands at 1.32%, with individual funds' yields ranging from 0.30% to 3.20%. While dividends contribute to the portfolio's total return, the primary focus on growth stocks, which typically reinvest profits rather than pay high dividends, explains the moderate overall yield. Investors seeking income in addition to growth might consider a higher allocation to assets with stronger dividend yields.

Ongoing product costs Info

  • FIDELITY LARGE CAP GROWTH INDEX FUND INSTITUTIONAL PREMIUM CLASS 0.04%
  • JPMORGAN INTERNATIONAL VALUE FUND CLASS A 1.00%
  • Invesco S&P 500® Momentum ETF 0.13%
  • Weighted costs total (per year) 0.11%

The portfolio's overall expense ratio (TotalTER) is 0.11%, ranging from 0.04% for the FIDELITY LARGE CAP GROWTH INDEX FUND INSTITUTIONAL PREMIUM CLASS to 1.00% for the JPMORGAN INTERNATIONAL VALUE FUND CLASS A. This low cost structure is beneficial for long-term growth, as lower costs can significantly enhance net returns. Continuously monitoring and minimizing investment costs remains a prudent strategy for optimizing portfolio performance.

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.

The portfolio's current composition suggests room for optimization, particularly by addressing the overlap between highly correlated assets. Utilizing the Efficient Frontier concept could identify an allocation that offers the best possible risk-return trade-off based on the current assets. However, achieving true optimization also requires considering the investor's specific risk tolerance, investment horizon, and financial goals.

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