Tech leaning US comfort zone that thinks three overlapping index funds count as innovation
Report created on Sep 4, 2026Risk profile
5/7
Diversification profile
3/5
Positions
-
FX Fidelity 500 Index Fund
FXAIX - US3159117502 32.10% -
FP FIDELITY EMERGING MARKETS INDEX FUND INSTITUTIONAL PREMIUM CLASS
FPADX - US3161463316 25.46% -
FN FIDELITY NASDAQ COMPOSITE INDEX FUND
FNCMX - US3159127097 20.30% -
FS Fidelity Total Market Index Fund
FSKAX - US3159116934 18.45% -
FI Fidelity Small Cap Value Index Fund
FISVX - US31635T7735 3.69%
This portfolio is basically a Fidelity sampler platter where three funds all chase the same US core and pretend they’re different. The 500 Index, Total Market, and Nasdaq funds together dominate, with a token small-cap value slice and a chunky emerging markets bolt-on. It looks diversified at first glance, but under the hood it’s one big bet on US large growth plus a side quest in developing countries. Structurally, it’s more “three angles of the same picture” than a truly mixed lineup. The result is a portfolio that feels busy on paper yet behaves like a fairly straightforward growth-heavy US stock portfolio with an EM kicker.
Growth
Historically, this thing did what a growth-tilted equity portfolio is supposed to do: turned $1,000 into $2,717 with a 15.06% CAGR. That’s strong, but it still lagged the broad US market by 0.74% a year — like running fast but always a step behind the local champ. On the bright side, it beat the global market by a comfortable margin, so at least the “America plus EM” approach didn’t completely whiff. Max drawdown at -32.78% was brutal but very normal for 2020-style chaos. Past returns are like old highlight reels: entertaining and somewhat useful, but they don’t guarantee the next season looks the same.
Projection
The Monte Carlo projection basically says, “Expect a bumpy ride that probably ends up okay-ish.” Starting with $1,000, the median outcome after 15 years is $2,786, with a wide “likely” range from $1,848 to $4,283. Monte Carlo is just a fancy way of rolling the dice on thousands of alternate futures, based on past volatility and returns. In the nightmare 5% scenarios you basically crawl out with roughly your starting money; in the top 5% you look like a genius. Simulations are still built on history, though, so they’re more weather forecast than prophecy — helpful, but definitely not sacred.
Asset classes
- Stocks 100%
Asset class breakdown is simple to the point of stubborn: 100% stocks, 0% anything else. No bonds, no cash buffer, no diversifiers — just pure equity roller coaster. That’s great if the goal is maximum long-term oomph and absolutely no concern about stomach drops along the way. But it does mean this portfolio has one speed: fast when markets are kind, and faceplant when they’re not. In asset-class terms, this isn’t a “balanced meal”; it’s the financial equivalent of energy drinks and espresso shots. It can work, but no one should be surprised when volatility smacks it around.
Sectors
- Technology 38%
- Financials 13%
- Consumer Discretionary 10%
- Telecommunications 10%
- Industrials 7%
- Health Care 7%
- Consumer Staples 4%
- Basic Materials 3%
- Energy 3%
- Utilities 2%
- Real Estate 2%
Sector-wise, the portfolio is clearly tech-infatuated, with 38% parked in technology and another big chunk in growth-adjacent areas like consumer discretionary and telecom. It’s basically a love letter to the modern digital economy with a reluctant nod to boring stuff like utilities and real estate at 2% each. Compared to a more even spread, this setup leans into whatever’s shiny, scalable, and usually pricey. When the growth darlings are in fashion, this looks smart. When they aren’t, it’s more like showing up to a snowstorm in flip-flops — stylish until conditions change.
Regions
- North America 74%
- Asia Emerging 10%
- Asia Developed 10%
- Africa/Middle East 2%
- Latin America 2%
- Europe Developed 1%
- Europe Emerging 1%
Geographically, this portfolio screams “home bias with a side of adventure.” About 74% lives in North America, with only 1% in developed Europe and 1% in emerging Europe — the rest of the non-US exposure is mostly emerging and Asian markets. It’s like skipping Europe almost entirely and going straight from the US to the more chaotic corners of the world. That creates a weird barbell: super-stable mega-cap US on one side, more fragile emerging regions on the other, and almost no middle ground. Global diversification? Technically yes, but it’s definitely not trying very hard.
Market capitalization
- Mega-cap 49%
- Large-cap 29%
- Mid-cap 14%
- Small-cap 4%
- Micro-cap 3%
The market cap mix is textbook “index-core with a sprinkle of spice”: roughly half mega-cap, another 29% large-cap, and only modest exposure to mid, small, and micro caps. Translation: this portfolio mostly worships the giants and tosses a few crumbs to the little guys. The small-cap value fund plus the total market exposure do pull in some smaller names, but not enough to change the overall personality, which is still very big, very established companies. That’s fine if the goal is stability relative to pure small caps, but it also means the “index” label is doing most of the work, not true size diversification.
Factors
Factor-wise, the profile is almost suspiciously normal. Value, size, momentum, quality, and low volatility all sit near “neutral,” meaning this portfolio mostly just rides the broad market’s factor mix rather than making any bold statements. Yield stands out as low, which is code for “this thing doesn’t care much about dividends and is more about price growth.” Factors are like the secret flavors behind performance — value loves cheap stuff, momentum chases winners, quality prefers the sturdy names. Here, the factor setup says: plain vanilla with a growth-ish dividend diet. Nothing heroic, but also nothing wildly self-sabotaging.
Risk contribution
-
Fidelity 500 Index Fund
Weight: 32.10% 31.7% -
FIDELITY NASDAQ COMPOSITE INDEX FUND
Weight: 20.30% 24.0% -
FIDELITY EMERGING MARKETS INDEX FUND INSTITUTIONAL PREMIUM CLASS
Weight: 25.46% 21.5% -
Fidelity Total Market Index Fund
Weight: 18.45% 18.7% -
Fidelity Small Cap Value Index Fund
Weight: 3.69% 4.0%
Risk contribution reveals who’s actually rocking the boat, and the trio of the 500 Index, Nasdaq, and EM funds is doing most of the shaking. Together, the top three positions drive over 77% of total portfolio risk, which makes the smaller slices mostly decorative from a volatility standpoint. Nasdaq in particular punches above its weight, with more risk contribution than its allocation would suggest — not surprising for a growth-heavy index. Risk/weight ratios hovering near 1 mean there’s no single insane outlier, but it’s clear this portfolio lives and dies by a handful of broad equity bets, not a wide chorus of independent voices.
Redundant positions
-
High correlationFidelity Total Market Index FundFIDELITY NASDAQ COMPOSITE INDEX FUNDFidelity 500 Index Fund
The correlation picture is basically a “copy homework” situation. The Nasdaq fund and Total Market fund move almost identically, and the Total Market and 500 Index funds are also near-clones in behavior. Correlation just means how often things move together; here, the answer is “almost always.” That’s fine in good times — everything goes up in sync and it feels great. In a crash, though, the illusion of diversification disappears fast because all these holdings are tightly linked. This is less a team of diversifiers and more the same song played on three different speakers.
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.
On the efficient frontier, this portfolio actually behaves like it knows what it’s doing. The current allocation sits on or very near the frontier, meaning that for this mix of holdings, it’s getting a reasonable tradeoff between risk and return. A Sharpe ratio of 0.61 isn’t elite, but it’s not embarrassing either, especially since the max-Sharpe version just cranks risk and return higher with the same ingredients. The frontier itself is just a curve showing the best return you can squeeze out for each risk level. So, inefficiency isn’t the roast here — the lineup choice is; the weighting is surprisingly competent.
Dividends
- Fidelity Small Cap Value Index Fund 10.70%
- FIDELITY NASDAQ COMPOSITE INDEX FUND 0.40%
- FIDELITY EMERGING MARKETS INDEX FUND INSTITUTIONAL PREMIUM CLASS 1.90%
- Fidelity Total Market Index Fund 0.90%
- Fidelity 500 Index Fund 1.00%
- Weighted yield (per year) 1.45%
The portfolio’s total yield at 1.45% is basically telling income seekers to look elsewhere. Most of the engine here is capital appreciation, not regular payouts. The one weird outlier is the small-cap value fund with a wild-looking 10.70% yield, which is more “are you okay?” than “steady income.” Huge yields like that are often driven by quirks, one-off events, or shaky companies, not magical free money. The rest of the lineup is firmly in low-yield, growth-oriented territory. This isn’t a “collect the checks” portfolio; it’s a “hope the share prices do the heavy lifting” situation.
Ongoing product costs
- Fidelity Small Cap Value Index Fund 0.05%
- FIDELITY NASDAQ COMPOSITE INDEX FUND 0.29%
- FIDELITY EMERGING MARKETS INDEX FUND INSTITUTIONAL PREMIUM CLASS 0.08%
- Fidelity Total Market Index Fund 0.02%
- Fidelity 500 Index Fund 0.02%
- Weighted costs total (per year) 0.09%
Costs are one of the few areas where this portfolio isn’t shooting itself in the foot. A total TER of 0.09% is impressively low — the financial equivalent of flying economy but somehow not being ripped off. The only semi-pricey hitch is the Nasdaq fund at 0.29%, which feels a bit rich next to the 0.02% core funds. But overall, this is not a fee disaster. If anything, the real question is why you’re paying three different funds to buy mostly the same US stocks. Still, on raw expenses alone, this lineup is lean and not the thing draining returns.
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