Growth-oriented portfolio with a strong focus on US stocks and technology sector

Report created on Jul 19, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

The portfolio predominantly consists of four Fidelity Zero Index Funds, emphasizing large-cap, total market, international, and extended market indices. This structure showcases a strategic tilt towards equities, with a significant portion allocated to large-cap and total market funds, suggesting a preference for broad market exposure. However, the overlap between the large-cap and total market funds indicates room for diversification improvement.

Growth Info

Historically, this portfolio has demonstrated a Compound Annual Growth Rate (CAGR) of 13.25%, with a notable maximum drawdown of -35.18%. These figures highlight the portfolio's growth potential alongside its susceptibility to substantial market downturns. The days contributing most to returns suggest that performance peaks are concentrated, underscoring the importance of staying invested during volatile periods.

Projection Info

Monte Carlo simulations project a wide range of outcomes, with the median scenario suggesting a 303.1% increase. This forward-looking analysis, while based on historical data, offers a glimpse into the portfolio's potential growth, albeit with inherent uncertainty. It's crucial to interpret these projections with caution, as past performance is not a reliable indicator of future results.

Asset classes Info

  • Stocks
    100%

The portfolio is entirely allocated to stocks, neglecting other asset classes like bonds or real estate. This allocation supports the growth profile but increases volatility and risk. Introducing other asset classes could provide a cushion against stock market fluctuations, potentially smoothing out returns over time.

Sectors Info

  • Technology
    27%
  • Financials
    16%
  • Consumer Discretionary
    11%
  • Industrials
    11%
  • Health Care
    10%
  • Telecommunications
    8%
  • Consumer Staples
    6%
  • Energy
    4%
  • Real Estate
    3%
  • Basic Materials
    3%
  • Utilities
    3%

Sector allocation is heavily weighted towards technology, financial services, and consumer cyclical industries, reflecting a growth-oriented strategy. However, this concentration increases exposure to sector-specific risks. Diversifying across a broader range of sectors could mitigate these risks while still capturing growth opportunities.

Regions Info

  • North America
    86%
  • Europe Developed
    6%
  • Japan
    2%
  • Asia Emerging
    2%
  • Asia Developed
    2%
  • Australasia
    1%
  • Africa/Middle East
    1%

Geographic allocation is heavily skewed towards North America, with minimal exposure to emerging markets and other developed regions. This concentration benefits from the robust performance of the US market but limits global diversification. Expanding into underrepresented regions could enhance growth prospects and reduce geographic risk.

Market capitalization Info

  • Mega-cap
    39%
  • Large-cap
    28%
  • Mid-cap
    18%
  • Small-cap
    11%
  • Micro-cap
    3%

The portfolio's market capitalization breakdown shows a preference for mega and large-cap stocks, known for their stability and potential for steady growth. However, the underrepresentation of small and micro-cap stocks suggests missed opportunities for higher growth rates, albeit with increased risk.

Redundant positions Info

  • FIDELITY ZERO LARGE CAP INDEX FUND
    FIDELITY ZERO TOTAL MARKET INDEX FUND
    High correlation

The high correlation between the Fidelity Zero Large Cap and Total Market Index Funds indicates redundancy, limiting the diversification benefits. Reducing overlap by reallocating assets could enhance portfolio efficiency, potentially improving the risk-return profile.

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.

Optimizing the portfolio involves addressing the overlap between highly correlated assets to improve diversification. By reallocating funds from overlapping assets to underrepresented sectors, regions, or asset classes, the portfolio can achieve a more efficient risk-return balance, aligning closer to the Efficient Frontier.

Dividends Info

  • FIDELITY ZERO LARGE CAP INDEX FUND 1.00%
  • FIDELITY ZERO INTERNATIONAL INDEX FUND 2.50%
  • FIDELITY ZERO EXTENDED MARKET INDEX FUND 1.20%
  • FIDELITY ZERO TOTAL MARKET INDEX FUND 1.10%
  • Weighted yield (per year) 1.28%

The portfolio's dividend yield, averaging 1.28%, contributes to total returns, particularly in volatile or bear markets. While not the primary focus of a growth-oriented strategy, dividends offer a passive income stream and a sign of company health, supporting long-term investment objectives.

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