Balanced and highly diversified portfolio with a focus on stocks and low costs

Report created on Aug 1, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

5/5
Highly Diversified
Less diversification More diversification

Positions

The portfolio is heavily weighted towards equities, with 60% in the Fidelity Total Market Index Fund and 20% in the Fidelity Total International Index Fund, providing broad exposure to both U.S. and international stocks. The remaining 20% is allocated to the Fidelity U.S. Bond Index Fund, offering a stable income component and risk mitigation. This asset allocation aligns with a balanced investment strategy, aiming for growth while managing risk through diversification across asset classes and geographic regions.

Growth Info

Historically, the portfolio has demonstrated strong performance, with a Compound Annual Growth Rate (CAGR) of 11.31%. The maximum drawdown of -29.78% indicates the portfolio's largest decline from peak to trough during the observed period, reflecting its risk level. Notably, a small number of days contributed significantly to the overall returns, underscoring the importance of staying invested over the long term to capture key growth periods.

Projection Info

Monte Carlo simulations, which use historical data to project future outcomes, suggest a wide range of potential returns for this portfolio. With 983 out of 1,000 simulations showing positive returns, the median projected growth is substantial. However, it's important to remember that these projections are not guarantees but rather scenarios to help gauge potential risk and return profiles.

Asset classes Info

  • Stocks
    79%
  • Bonds
    20%
  • Cash
    1%

The portfolio's asset allocation—79% stocks, 20% bonds, and 1% cash—provides a balanced mix of growth and income. Stocks offer potential for higher returns but come with increased volatility, while bonds can offer stability and income, helping to cushion against stock market fluctuations. This blend is suitable for investors with a moderate risk tolerance and a long-term investment horizon.

Sectors Info

  • Technology
    21%
  • Financials
    13%
  • Consumer Discretionary
    9%
  • Industrials
    8%
  • Health Care
    8%
  • Telecommunications
    7%
  • Consumer Staples
    5%
  • Energy
    3%
  • Basic Materials
    3%
  • Real Estate
    2%
  • Utilities
    2%

Sectoral allocation is diverse, with the largest exposures in technology, financial services, and consumer cyclicals. This diversification helps mitigate sector-specific risks and capitalizes on growth opportunities across different areas of the economy. However, the significant weighting in technology, a sector known for volatility, underscores the need for periodic review to ensure alignment with risk tolerance and investment objectives.

Regions Info

  • North America
    61%
  • No data
    20%
  • Europe Developed
    8%
  • Japan
    3%
  • Asia Emerging
    3%
  • Asia Developed
    2%
  • Australasia
    1%
  • Africa/Middle East
    1%

Geographically, the portfolio is primarily invested in North America (61%), with significant exposure to international markets (39%). This global diversification helps spread risk and taps into growth opportunities worldwide. However, the portfolio has minimal exposure to emerging markets, which may offer high growth potential but come with higher risk.

Market capitalization Info

  • Mega-cap
    33%
  • Large-cap
    24%
  • Mid-cap
    15%
  • Small-cap
    5%
  • Micro-cap
    1%

The portfolio's market capitalization breakdown—mega (33%), big (24%), medium (15%), small (5%), and micro (1%)—indicates a tilt towards larger companies, which are typically more stable but may offer lower growth potential compared to smaller companies. Diversifying across different market caps can potentially enhance returns while managing risk.

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.

The current portfolio exhibits a well-balanced risk-return profile, as indicated by its alignment with the Efficient Frontier in simulations. This suggests the portfolio is optimized for the best possible risk-return ratio given its current assets and allocation. However, continuous monitoring and rebalancing are essential to maintain this optimization over time.

Dividends Info

  • Fidelity Total Market Index Fund 1.00%
  • FIDELITY TOTAL INTERNATIONAL INDEX FUND INSTITUTIONAL PREMIUM CLASS 2.40%
  • FIDELITY U.S. BOND INDEX FUND INSTITUTIONAL PREMIUM CLASS 3.20%
  • Weighted yield (per year) 1.72%

The portfolio's average dividend yield of 1.72% contributes to its total return, providing a steady income stream in addition to potential capital appreciation. This yield, while modest, enhances the portfolio's appeal for income-focused investors, particularly in a low-interest-rate environment.

Ongoing product costs Info

  • Fidelity Total Market Index Fund 0.02%
  • FIDELITY TOTAL INTERNATIONAL INDEX FUND INSTITUTIONAL PREMIUM CLASS 0.06%
  • FIDELITY U.S. BOND INDEX FUND INSTITUTIONAL PREMIUM CLASS 0.02%
  • Weighted costs total (per year) 0.03%

With an overall expense ratio of just 0.03%, the portfolio stands out for its cost efficiency, which is crucial for maximizing long-term returns. Lower costs mean more of the investment's return is retained by the investor, a key factor in building wealth over time.

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.

Instrument logos provided by Elbstream.

Help us improve Insightfolio

Your feedback makes a difference! Share your thoughts in our quick survey. Take the survey