A growth-oriented portfolio with a strong focus on US large-cap stocks and limited 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

Balanced Investors

This portfolio is best suited for an investor with a moderate to high risk tolerance, looking for growth over a medium to long-term horizon. The heavy allocation to US large-cap equities suggests a preference for established companies, likely aiming for capital appreciation rather than immediate income. Such an investor should be comfortable with market fluctuations and have the patience to ride out periods of volatility in pursuit of higher returns.

Positions

  • Fidelity Contrafund
    FCNTX - US3160711095
    47.83%
  • Schwab U.S. Large-Cap Growth ETF
    SCHG - US8085243009
    12.37%
  • FIDELITY EXTENDED MARKET INDEX FUND INSTITUTIONAL PREMIUM CLASS
    FSMAX - US3159117437
    11.90%
  • Fidelity 500 Index Fund
    FXAIX - US3159117502
    11.48%
  • Invesco Zacks Multi-Asset Income ETF
    CVY - US46137Y5006
    5.59%
  • SPDR® Portfolio S&P 500 Value ETF
    SPYV - US78464A5083
    5.29%
  • WisdomTree U.S. Quality Dividend Growth Fund
    DGRW - US97717X6691
    4.00%
  • Fidelity Covington Trust
    FELG - US31609A3059
    1.54%

This portfolio is heavily weighted towards US large-cap stocks, with a significant portion allocated to the Fidelity Contrafund and a variety of ETFs that focus on large-cap growth and value. While this concentration in large-cap equities suggests a preference for growth and potentially lower volatility compared to smaller caps, the limited diversification across asset classes and geographic regions could increase risk. The predominance of stocks (96%) over other asset classes underscores a growth-oriented strategy but highlights a lack of balance that could be detrimental during market downturns.

Growth Info

With a Compound Annual Growth Rate (CAGR) of 26.39% and a maximum drawdown of -19.85%, the portfolio has demonstrated strong historical performance. However, it's crucial to remember that past performance is not indicative of future results. The days contributing most significantly to returns suggest that the portfolio's performance is somewhat volatile, relying on relatively few high-performing days. This kind of performance pattern requires a risk tolerance aligned with potential short-term losses for long-term gains.

Projection Info

Monte Carlo simulations project a wide range of outcomes, with the median scenario suggesting significant growth. However, the reliance on historical data in these simulations means they cannot predict unforeseen market shifts. While the optimistic projections are encouraging, investors should remain cautious and not base decisions solely on these forecasts. Diversification and regular portfolio reviews could help mitigate risks that simulations cannot anticipate.

Asset classes Info

  • Stocks
    96%
  • Other
    1%
  • Cash
    1%
  • No data
    1%
  • Bonds
    0%
  • Not Classified
    0%

The portfolio's asset allocation is heavily skewed towards stocks, with minimal exposure to other asset classes. This concentration enhances potential for growth but also increases susceptibility to market volatility. Introducing a broader range of asset classes, including bonds or real assets, could provide a buffer during stock market downturns, contributing to a more balanced and resilient investment strategy.

Sectors Info

  • Technology
    27%
  • Financials
    17%
  • Telecommunications
    17%
  • Health Care
    9%
  • Industrials
    8%
  • Consumer Discretionary
    7%
  • Energy
    4%
  • Consumer Staples
    3%
  • Consumer Discretionary
    3%
  • Real Estate
    2%
  • Basic Materials
    2%
  • Utilities
    1%

Sector allocation shows a strong emphasis on technology, financial services, and communication services. This concentration in sectors that can be highly volatile and sensitive to economic cycles may increase the portfolio's risk profile. Diversifying across a wider range of sectors, including more defensive industries like healthcare or consumer staples, could offer stability in different market conditions.

Regions Info

  • North America
    97%
  • Europe Developed
    1%
  • Latin America
    0%
  • Asia Developed
    0%
  • Asia Emerging
    0%
  • Japan
    0%
  • Africa/Middle East
    0%
  • Australasia
    0%

The portfolio's geographic exposure is overwhelmingly focused on North America, with negligible allocations to other regions. This concentration risks magnifying the impact of US market downturns. Expanding into developed and emerging markets outside the US could provide growth opportunities and reduce geographic risk, enhancing long-term performance.

Market capitalization Info

  • Mega-cap
    49%
  • Large-cap
    21%
  • Mid-cap
    15%
  • Small-cap
    8%
  • Micro-cap
    3%

The allocation towards mega and large-cap stocks suggests a preference for established, potentially more stable companies. However, this focus may limit exposure to high-growth opportunities in the mid and small-cap segments. Balancing market cap exposure could introduce growth potential and further diversification benefits.

Redundant positions Info

  • Schwab U.S. Large-Cap Growth ETF
    Fidelity Covington Trust
    Fidelity Contrafund
    Fidelity 500 Index Fund
    WisdomTree U.S. Quality Dividend Growth Fund
    High correlation

The high correlation among several assets, particularly within large-cap growth stocks and ETFs, indicates redundancy that doesn't contribute to diversification. Reducing overlap by reallocating investments into less correlated assets can enhance portfolio efficiency, potentially improving risk-adjusted returns without sacrificing growth.

Dividends Info

  • Invesco Zacks Multi-Asset Income ETF 3.80%
  • WisdomTree U.S. Quality Dividend Growth Fund 1.40%
  • Fidelity Contrafund 8.30%
  • FIDELITY EXTENDED MARKET INDEX FUND INSTITUTIONAL PREMIUM CLASS 0.40%
  • Fidelity 500 Index Fund 1.10%
  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • SPDR® Portfolio S&P 500 Value ETF 1.80%
  • Fidelity Covington Trust 0.40%
  • Weighted yield (per year) 4.56%

The portfolio's dividend yield contributes to its total return, with certain assets offering attractive yields. However, the focus on growth stocks, which typically reinvest earnings rather than pay dividends, means the overall yield is moderate. Investors seeking income in addition to growth might consider increasing allocations to assets with higher dividend yields or diversified income-generating strategies.

Ongoing product costs Info

  • Invesco Zacks Multi-Asset Income ETF 1.06%
  • WisdomTree U.S. Quality Dividend Growth Fund 0.28%
  • Fidelity Contrafund 0.63%
  • FIDELITY EXTENDED MARKET INDEX FUND INSTITUTIONAL PREMIUM CLASS 0.04%
  • Fidelity 500 Index Fund 0.02%
  • Schwab U.S. Large-Cap Growth ETF 0.04%
  • SPDR® Portfolio S&P 500 Value ETF 0.04%
  • Fidelity Covington Trust 0.18%
  • Weighted costs total (per year) 0.39%

The average portfolio cost (Total Expense Ratio, TER) is relatively low, which is beneficial for long-term growth as costs can significantly erode returns over time. However, the Invesco Zacks Multi-Asset Income ETF has a notably higher TER, which may warrant reevaluation. Lowering costs further, where possible, could enhance net returns.

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 current portfolio could benefit from optimization to improve its risk-return profile. Addressing highly correlated assets and increasing diversification across asset classes, sectors, and geographies could yield better risk-adjusted returns. Employing the Efficient Frontier concept could help identify an optimal asset mix that maximizes returns for a given level of risk.

What next?

Ready to invest in this portfolio?

Select a broker that fits your needs and watch for low fees to maximize your returns.

Select broker

Create your own report?

Analyze your portfolio

Join our community!

Join Discord

The information provided on this platform is for informational purposes only and should not be considered as financial or investment advice. Insightfolio does not provide investment advice, personalized recommendations, or guidance regarding the purchase, holding, or sale of financial assets. The tools and content are intended for educational purposes only and are not tailored to individual circumstances, financial needs, or objectives.

Insightfolio assumes no liability for the accuracy, completeness, or reliability of the information presented. Users are solely responsible for verifying the information and making independent decisions based on their own research and careful consideration. Use of the platform should not replace consultation with qualified financial professionals.

Investments involve risks. Users should be aware that the value of investments may fluctuate and that past performance is not an indicator of future results. Investment decisions should be based on personal financial goals, risk tolerance, and independent evaluation of relevant information.

Insightfolio does not endorse or guarantee the suitability of any particular financial product, security, or strategy. Any projections, forecasts, or hypothetical scenarios presented on the platform are for illustrative purposes only and are not guarantees of future outcomes.

By accessing the services, information, or content offered by Insightfolio, users acknowledge and agree to these terms of the disclaimer. If you do not agree to these terms, please do not use our platform.