A portfolio that can't decide if it's a cautious retiree or a thrill-seeking investor
Report created on Jun 14, 2025Risk profile
5/7
Diversification profile
4/5
Positions
-
FX Fidelity 500 Index Fund
FXAIX - US3159117502 59.15% -
FZ FIDELITY ZERO TOTAL MARKET INDEX FUND
FZROX - US31635T7081 19.39% -
AC iShares MSCI ACWI ex U.S. ETF
ACWX - US4642882405 9.74% -
FS FIDELITY EXTENDED MARKET INDEX FUND INSTITUTIONAL PREMIUM CLASS
FSMAX - US3159117437 6.86% -
FT FIDELITY TOTAL INTERNATIONAL INDEX FUND INSTITUTIONAL PREMIUM CLASS
FTIHX - US31635V6386 4.86%
Piling 78.54% into two Fidelity funds that are essentially looking in the same financial mirror is like buying two different brands of plain white socks and expecting one to jazz up your outfit. It's a classic case of "I think I'm diversified because I have more things," but really, you're just wearing different socks on each foot and calling it fashion. This portfolio leans heavily on large-cap U.S. equities, giving the impression of someone trying to ride the American Dream like it's a perpetual bull market.
Growth
Historically, this portfolio has been like that one friend who brags about their wild Vegas weekend but quietly omits the part where they lost their shirt. A 13.19% CAGR is impressive until you realize it's been riding the coattails of one of the longest bull markets in history. The -34.40% max drawdown is a stark reminder that what goes up can come crashing down, especially with such a heavy lean on equities.
Projection
Monte Carlo simulations are like those weather forecasts that say there's a chance of rain but you end up getting soaked. The projection of a 259.6% median increase sounds great until you remember it's based on past performance, which, like your ex, isn't always a reliable indicator of future behavior. The portfolio's gamble on heavy equity concentration could either make it a hero or give it a zero in the next economic downturn.
Asset classes
- Stocks 100%
This portfolio is as diversified in asset classes as a diet consisting only of potatoes. Sure, you can fry them, mash them, or boil them, but in the end, it's all potatoes. With 100% in stocks, the portfolio is missing out on the protective benefits that bonds, real estate, or alternative investments can offer. It's like going into battle without armor, relying solely on the hope that nothing bad happens.
Sectors
- Technology 27%
- Financials 16%
- Health Care 11%
- Consumer Discretionary 9%
- Industrials 9%
- Telecommunications 8%
- Consumer Staples 6%
- Energy 4%
- Basic Materials 3%
- Utilities 3%
- Real Estate 3%
- Consumer Discretionary 1%
With a 27% allocation to technology, this portfolio is essentially swiping right on Silicon Valley. While it's been a hot date for the past decade, tech's volatility can be a heartbreaker when markets turn. The financial services and healthcare allocations add some balance, but it's like adding a sprinkle of vegetables to a deep-fried meal and calling it healthy.
Regions
- North America 86%
- Europe Developed 6%
- Asia Emerging 2%
- Japan 2%
- Asia Developed 2%
- Australasia 1%
- Africa/Middle East 1%
The 86% allocation to North America is like believing the world is flat; it disregards the vast opportunities and diversification benefits that international markets can offer. Europe, Asia, and emerging markets are barely getting a nod, which is a missed chance to spice up the portfolio with a bit of global flavor.
Market capitalization
- Mega-cap 44%
- Large-cap 31%
- Mid-cap 18%
- Small-cap 5%
- Micro-cap 2%
With a heavy lean on mega and big caps, this portfolio is like that friend who only hangs out with the popular crowd, missing out on the interesting stories and growth opportunities that smaller companies can offer. Sure, large caps bring stability, but they also often bring the excitement of watching paint dry in a low-growth environment.
Redundant positions
-
High correlationFIDELITY TOTAL INTERNATIONAL INDEX FUND INSTITUTIONAL PREMIUM CLASSiShares MSCI ACWI ex U.S. ETF
-
High correlationFidelity 500 Index FundFIDELITY ZERO TOTAL MARKET INDEX FUND
The high correlation between the Fidelity 500 Index Fund and the Fidelity Zero Total Market Index Fund is like having two different apps that do the same thing on your phone. It's redundant. This lack of true diversification means that when one sneezes, the other catches a cold, amplifying the portfolio's risk instead of spreading it out.
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.
Before even dreaming of optimization, this portfolio needs a reality check. The overlapping holdings are like hoarding canned beans in preparation for the apocalypse; sure, you're prepared, but your diet is going to get monotonous real fast. Diversification isn't just a fancy word; it's a strategy to ensure your investments can weather different storms, not just the ones you've already survived.
Dividends
- iShares MSCI ACWI ex U.S. ETF 1.30%
- FIDELITY EXTENDED MARKET INDEX FUND INSTITUTIONAL PREMIUM CLASS 0.50%
- FIDELITY TOTAL INTERNATIONAL INDEX FUND INSTITUTIONAL PREMIUM CLASS 2.50%
- Fidelity 500 Index Fund 1.20%
- FIDELITY ZERO TOTAL MARKET INDEX FUND 1.10%
- Weighted yield (per year) 1.21%
Leaning on dividends is like looking for coins under your sofa cushions; it's nice when you find them, but it's not a strategy to fund your retirement. With a total yield of 1.21%, the portfolio is generating some income, but it's not enough to rely on during lean market periods. It's a side hustle at best.
Ongoing product costs
- iShares MSCI ACWI ex U.S. ETF 0.34%
- FIDELITY EXTENDED MARKET INDEX FUND INSTITUTIONAL PREMIUM CLASS 0.04%
- FIDELITY TOTAL INTERNATIONAL INDEX FUND INSTITUTIONAL PREMIUM CLASS 0.06%
- Fidelity 500 Index Fund 0.02%
- Weighted costs total (per year) 0.05%
The one place this portfolio doesn't need improvement is in keeping costs low, with a Total Expense Ratio (TER) of 0.05%. It's like finding a luxury car with the fuel efficiency of a compact; you're getting a lot for a little, but even a fuel-efficient car can't help if you're driving aimlessly.
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