A growth-focused portfolio with a strong tilt towards US markets and technology

Report created on Aug 17, 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's allocation is heavily weighted towards the Fidelity Zero Total Market Index Fund at 70%, with the remaining 30% in the Fidelity Total International Index Fund Institutional Premium Class. This structure suggests a strong emphasis on US equities, given the domestic focus of the Total Market Index Fund. Such a composition aligns with a growth-oriented strategy, leveraging broad market exposure. However, the heavy weighting towards a single market and asset class (stocks) indicates a potential area for diversification improvement, particularly for investors seeking to mitigate geographic and sector-specific risks.

Growth Info

Historical performance, with a Compound Annual Growth Rate (CAGR) of 12.81%, showcases the portfolio's strong past returns. The maximum drawdown of -34.54% indicates a significant but not unusual risk level for equity-focused portfolios, particularly during market downturns. The days contributing to 90% of returns being so few highlights the volatile nature of equity returns and the importance of staying invested during turbulent times. Comparing these figures to benchmarks could provide further insight into performance relative to similar investment strategies.

Projection Info

The Monte Carlo simulation, with 970 out of 1,000 scenarios showing positive returns, suggests a high likelihood of future gains, reinforcing the portfolio's growth orientation. However, it's crucial to remember that such simulations use historical data to forecast future outcomes, and past performance is not a reliable indicator of future results. The wide range in potential outcomes, from the 5th to the 67th percentile, underscores the inherent uncertainties in market-based investments and the importance of risk tolerance alignment.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio is almost entirely composed of stocks (99%), with a minimal cash holding (1%). This asset class distribution supports a growth-focused investment strategy but comes with higher volatility and risk compared to more diversified or balanced portfolios. Investors should consider whether the minimal cash allocation aligns with their liquidity needs and risk tolerance, especially in market downturns where cash can provide stability and opportunities for rebalancing.

Sectors Info

  • Technology
    26%
  • Financials
    17%
  • Industrials
    11%
  • Consumer Discretionary
    11%
  • Health Care
    9%
  • Telecommunications
    8%
  • Consumer Staples
    6%
  • Energy
    4%
  • Basic Materials
    3%
  • Real Estate
    3%
  • Utilities
    3%

The sector allocation, with a significant emphasis on technology (26%) and financial services (17%), reflects a common growth-oriented strategy. These sectors often lead market gains during economic expansions but can be more volatile during downturns. The portfolio's exposure across a broad range of sectors, while still concentrated, suggests a balanced approach within its equity allocation. However, investors should be mindful of sector-specific risks and consider diversification strategies that can mitigate these risks.

Regions Info

  • North America
    72%
  • Europe Developed
    12%
  • Japan
    5%
  • Asia Emerging
    4%
  • Asia Developed
    3%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%

Geographic allocation heavily favors North America (72%), with modest exposure to developed and emerging markets outside the US. This concentration enhances exposure to the US economy's growth potential but may limit diversification benefits and exposure to global growth opportunities. Considering the global nature of many sectors, particularly technology, investors might explore increasing international exposure to capture diverse economic growth drivers and reduce geographic concentration risk.

Market capitalization Info

  • Mega-cap
    42%
  • Large-cap
    30%
  • Mid-cap
    18%
  • Small-cap
    5%
  • Micro-cap
    1%

The market capitalization breakdown, with a focus on mega (42%) and big (30%) cap stocks, aligns with the portfolio's growth and stability goals, leveraging the potential for steady returns from established companies. However, the relatively lower allocation to medium, small, and micro caps suggests an area for potential growth enhancement, albeit with increased volatility. Diversifying across different market caps can offer a balance between risk and return, capturing the growth potential of smaller companies while maintaining a foundation of stability.

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 Efficient Frontier, this portfolio likely sits near the optimal risk-return balance for its current asset allocation. However, the heavy tilt towards stocks and certain sectors/geographies suggests there might be room for optimization, especially for risk management and diversification. Exploring different asset mixes could potentially offer a better risk-adjusted return profile, aligning closely with the investor's risk tolerance and investment horizon.

Dividends Info

  • FIDELITY TOTAL INTERNATIONAL INDEX FUND INSTITUTIONAL PREMIUM CLASS 2.30%
  • FIDELITY ZERO TOTAL MARKET INDEX FUND 1.10%
  • Weighted yield (per year) 1.46%

The dividend yield, averaging 1.46% across the portfolio, contributes to the total return, providing a source of income alongside capital gains. While the yield may not be the primary focus for growth-oriented investors, it offers a cushion during market volatility and a reinvestment opportunity for compounding growth. Given the portfolio's growth focus, the current yield seems appropriate, but investors looking for higher income might explore sectors or assets with higher dividend yields.

Ongoing product costs Info

  • FIDELITY TOTAL INTERNATIONAL INDEX FUND INSTITUTIONAL PREMIUM CLASS 0.06%
  • Weighted costs total (per year) 0.02%

With an impressively low total expense ratio (TER) of 0.02%, the portfolio is well-positioned for cost-efficient growth. Low costs are crucial for long-term investment success, as they directly enhance net returns. This portfolio benefits from Fidelity's competitive fund options, ensuring more of the investment's growth is retained by the investor. Regularly reviewing costs remains important, especially when considering new investments or rebalancing strategies.

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