A balanced and diversified portfolio with a global outlook and a focus on large-cap equities

Report created on Jul 6, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

5/5
Highly Diversified
Less diversification More diversification

Positions

This portfolio is structured with a significant emphasis on equities, comprising 85% of the total allocation, split between U.S. large-cap stocks (55%), international equities excluding the U.S. (25%), and U.S. small-cap stocks (5%). The remaining 15% is allocated to U.S. bonds. This composition illustrates a balanced approach, leaning towards growth through its heavy equity weighting while maintaining a degree of risk mitigation through bonds. The diversification across geographic regions and market capitalizations suggests a strategy designed to capture global market returns while buffering against volatility through fixed income assets.

Growth Info

Historically, the portfolio has achieved a Compound Annual Growth Rate (CAGR) of 10.74%, with a maximum drawdown of -30.14%. These figures indicate a strong performance, with resilience during market downturns. The days contributing most significantly to returns highlight the portfolio's ability to capitalize on market upswings effectively. However, it's important to remember that past performance is not indicative of future results, and investors should consider long-term trends and economic cycles.

Projection Info

Monte Carlo simulations, which use historical data to forecast a range of potential outcomes, suggest a median future growth of 183.4%, with a wide range of scenarios from slight losses to substantial gains. This underscores the inherent uncertainty in investing and the importance of maintaining a diversified portfolio to weather different market conditions. While simulations offer valuable insights, they are based on past events and cannot predict future market movements with certainty.

Asset classes Info

  • Stocks
    85%
  • Bonds
    15%

The portfolio's asset class distribution, with 85% in stocks and 15% in bonds, positions it for growth while employing bonds as a stabilizing force against market volatility. This allocation aligns with a balanced investment strategy, aiming for higher returns through equities while mitigating risk through fixed income. Investors should regularly review their asset allocation to ensure it continues to match their risk tolerance and investment goals.

Sectors Info

  • Technology
    21%
  • Financials
    15%
  • Health Care
    9%
  • Consumer Discretionary
    9%
  • Industrials
    8%
  • Telecommunications
    7%
  • Consumer Staples
    5%
  • Energy
    4%
  • Basic Materials
    3%
  • Utilities
    2%
  • Real Estate
    2%

Sector allocation shows a heavy tilt towards technology and financial services, which may enhance growth potential but also introduces sector-specific risks. The diversification across other sectors like healthcare, consumer cyclical, and industrials broadens the portfolio's exposure, potentially reducing volatility. However, investors should be mindful of overconcentration in any one sector, as it can increase susceptibility to sector-specific downturns.

Regions Info

  • North America
    62%
  • No data
    15%
  • Europe Developed
    11%
  • Asia Emerging
    4%
  • Japan
    3%
  • Asia Developed
    3%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%

Geographically, the portfolio is predominantly invested in North America (62%), with significant exposure to developed European markets and a modest allocation to emerging markets in Asia. This distribution suggests a conservative approach to international diversification, favoring established markets over higher-risk emerging markets. Expanding geographic exposure could offer additional diversification benefits and access to growth opportunities in faster-growing economies.

Market capitalization Info

  • Mega-cap
    39%
  • Large-cap
    28%
  • Mid-cap
    12%
  • Small-cap
    3%
  • Micro-cap
    2%

The market capitalization breakdown, with a focus on mega and large-cap stocks, indicates a preference for established, blue-chip companies likely to offer stable returns and lower volatility compared to smaller companies. While this can be a prudent strategy, incorporating a broader mix of mid and small-cap stocks could enhance growth potential and diversification, albeit with increased 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.

Considering the Efficient Frontier, this portfolio appears well-positioned near the optimal balance between risk and return, given its current asset allocation. However, continuous monitoring and occasional rebalancing are essential to maintain this efficiency, especially in response to changing market conditions or personal financial goals. Adjustments may include shifting the balance between equities and bonds or diversifying further across sectors and geographies.

Dividends Info

  • FIDELITY GLOBAL EX U.S. INDEX FUND INSTITUTIONAL PREMIUM CLASS 2.40%
  • FIDELITY SMALL CAP INDEX FUND INSTITUTIONAL PREMIUM CLASS 0.90%
  • Fidelity 500 Index Fund 0.90%
  • Vanguard Total Bond Market Index Fund Admiral Shares 3.50%
  • Weighted yield (per year) 1.66%

The portfolio's dividend yield, averaging 1.66%, contributes to its total return, providing a steady income stream in addition to potential capital gains. This yield reflects a balanced approach, capturing the growth potential of stocks while securing income through bonds and dividend-paying equities. Regularly reviewing dividend policies and yields is crucial for income-focused investors to ensure their portfolio aligns with their cash flow needs.

Ongoing product costs Info

  • FIDELITY GLOBAL EX U.S. INDEX FUND INSTITUTIONAL PREMIUM CLASS 0.06%
  • FIDELITY SMALL CAP INDEX FUND INSTITUTIONAL PREMIUM CLASS 0.02%
  • Fidelity 500 Index Fund 0.02%
  • Vanguard Total Bond Market Index Fund Admiral Shares 0.04%
  • Weighted costs total (per year) 0.03%

With an overall expense ratio of 0.03%, the portfolio is cost-efficient, minimizing the drag on returns due to fees. This is crucial for long-term growth, as even small differences in costs can significantly impact compounded returns over time. Investors should continue to monitor fees and consider cost-effective investment options to maximize net returns.

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