Balanced and highly diversified portfolio emphasizing large-cap growth and global 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

Balanced Investors

This portfolio suits an investor looking for a balanced approach to growth and risk, with a keen interest in capital appreciation and a moderate to high risk tolerance. The diversification across asset classes, sectors, and geographies indicates a strategy designed for those with a long-term investment horizon, willing to weather short-term market volatility for potential higher returns. Ideal for individuals aiming to build wealth over time while staying engaged with global market trends.

Positions

  • AQR LARGE CAP MULTI-STYLE FUND CLASS I
    QCELX - US00203H5110
    30.00%
  • FIDELITY LARGE CAP GROWTH INDEX FUND INSTITUTIONAL PREMIUM CLASS
    FSPGX - US31635V7293
    20.00%
  • AQR INTERNATIONAL MULTI-STYLE FUND CLASS I
    QICLX - US00203H5375
    20.00%
  • FIDELITY SMALL CAP VALUE FUND FIDELITY SMALL CAP VALUE FUND
    FCPVX - US3163898329
    10.00%
  • GOLD PORTFOLIO GOLD PORTFOLIO
    FSAGX - US3163907807
    10.00%
  • SPDR® Portfolio Emerging Markets ETF
    SPEM - US78463X5095
    10.00%

The portfolio is strategically composed of a mix of large-cap, growth, and value funds, alongside a significant allocation to international markets and a unique position in gold. This blend not only underscores a commitment to diversification across asset classes and geographic regions but also balances growth potential with risk mitigation. The heavy weighting towards large-cap funds suggests a preference for stability and proven performance, while the inclusion of smaller cap and emerging market assets introduces growth opportunities and diversification benefits.

Growth Info

With a Compound Annual Growth Rate (CAGR) of 15.28% and a maximum drawdown of -34.07%, the portfolio has demonstrated robust growth potential while experiencing significant volatility. The days contributing to 90% of the returns highlight the impact of short-term gains on overall performance. Comparing these figures with benchmarks would provide further context, but the high CAGR suggests that the portfolio has likely outperformed many standard indices, especially considering the diversified nature of the investments.

Projection Info

The Monte Carlo simulation, projecting a wide range of outcomes based on historical data, indicates a median increase of 525.5% in portfolio value, showcasing strong growth potential. However, it's crucial to remember that these simulations assume past trends will continue, which may not always be the case. The broad range of outcomes, from the 5th percentile at 46.6% to the 67th percentile at 836.5%, underscores the inherent uncertainties in market performance and the importance of maintaining a diversified portfolio to mitigate risks.

Asset classes Info

  • Stocks
    97%
  • Other
    2%
  • Cash
    0%
  • Not Classified
    0%
  • No data
    0%
  • Bonds
    0%

The portfolio's asset allocation leans heavily towards stocks (97%), with a minimal presence in other asset classes. This concentration in equities is typical for growth-oriented portfolios but carries higher volatility and risk. Diversification across different asset classes, such as bonds or real estate, could provide additional buffers against market fluctuations. However, the current allocation is well-suited for investors with a higher risk tolerance and a long-term investment horizon.

Sectors Info

  • Technology
    25%
  • Financials
    19%
  • Basic Materials
    12%
  • Industrials
    11%
  • Consumer Discretionary
    8%
  • Telecommunications
    8%
  • Health Care
    5%
  • Consumer Staples
    4%
  • Energy
    2%
  • Real Estate
    1%
  • Utilities
    1%
  • Consumer Discretionary
    1%

Sector allocation shows a strong emphasis on technology and financial services, which are sectors known for their growth potential but also for their volatility. The presence in basic materials and industrials adds a layer of cyclical balance, potentially offsetting tech-sector volatility during economic downturns. However, the relatively low allocation to defensive sectors like healthcare and consumer defensive suggests a portfolio geared more towards capital appreciation than income or stability during market dips.

Regions Info

  • North America
    71%
  • Europe Developed
    12%
  • Asia Emerging
    6%
  • Japan
    4%
  • Asia Developed
    3%
  • Australasia
    2%
  • Africa/Middle East
    1%
  • Latin America
    1%
  • Europe Emerging
    0%

Geographically, the portfolio is heavily weighted towards North America (71%), with meaningful exposure to developed Europe and emerging markets in Asia. This distribution supports diversification across different economic cycles and market conditions. However, the underrepresentation in regions like Latin America and Africa/Middle East, along with a minimal stake in Europe Emerging, indicates potential opportunities for further geographic diversification to exploit global growth trends and mitigate region-specific risks.

Market capitalization Info

  • Mega-cap
    36%
  • Large-cap
    25%
  • Mid-cap
    16%
  • Small-cap
    15%
  • Micro-cap
    3%

The market capitalization breakdown reveals a balanced approach, with a tilt towards mega and big-cap stocks, which typically offer stability and lower volatility. However, the inclusion of medium, small, and micro-cap stocks introduces growth potential and the possibility of higher returns, albeit with increased risk. This diversified market cap exposure aligns with the portfolio's balanced risk profile, combining the pursuit of growth with a measure of prudence.

Dividends Info

  • FIDELITY SMALL CAP VALUE FUND FIDELITY SMALL CAP VALUE FUND 16.10%
  • GOLD PORTFOLIO GOLD PORTFOLIO 1.60%
  • FIDELITY LARGE CAP GROWTH INDEX FUND INSTITUTIONAL PREMIUM CLASS 0.30%
  • AQR LARGE CAP MULTI-STYLE FUND CLASS I 20.50%
  • AQR INTERNATIONAL MULTI-STYLE FUND CLASS I 5.90%
  • SPDR® Portfolio Emerging Markets ETF 2.40%
  • Weighted yield (per year) 9.40%

The portfolio's dividend yield stands at 9.40%, driven predominantly by high-yielding funds such as the AQR Large Cap Multi-Style Fund Class I. This substantial yield contribution enhances total returns, especially in volatile or bear markets, by providing a steady income stream. For investors prioritizing income alongside growth, maintaining or even increasing exposure to high-dividend-yielding assets could be beneficial.

Ongoing product costs Info

  • FIDELITY SMALL CAP VALUE FUND FIDELITY SMALL CAP VALUE FUND 0.97%
  • GOLD PORTFOLIO GOLD PORTFOLIO 0.68%
  • FIDELITY LARGE CAP GROWTH INDEX FUND INSTITUTIONAL PREMIUM CLASS 0.04%
  • AQR LARGE CAP MULTI-STYLE FUND CLASS I 0.41%
  • AQR INTERNATIONAL MULTI-STYLE FUND CLASS I 0.62%
  • SPDR® Portfolio Emerging Markets ETF 0.07%
  • Weighted costs total (per year) 0.43%

With a Total Expense Ratio (TER) averaging 0.43%, the portfolio is positioned to maximize returns by minimizing costs. The range of expense ratios from 0.04% to 0.97% highlights a strategic selection of funds balancing cost efficiency with diversified exposure. Lowering costs is crucial for long-term performance, as even small percentage differences can compound into significant impacts on net returns over time.

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.

Considering the Efficient Frontier, the portfolio appears well-optimized for a balance between risk and return, given its current asset allocation. However, there's always room for improvement, especially by reevaluating allocations that may be overly concentrated in specific sectors or regions. Adjusting these can potentially enhance the risk-return profile, moving the portfolio closer to the frontier's optimal curve without drastically altering its fundamental strategy.

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