Growth-focused portfolio with high exposure to US small and mega-cap stocks

Report created on Aug 18, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

This portfolio is primarily invested in US equities, with a significant portion allocated to small-cap value and mega-cap stocks through ETFs and mutual funds. The allocation is 40% in Avantis® U.S. Small Cap Value ETF, 30% in Fidelity Mega Cap Stock Fund, and another 30% in Fidelity Large Cap Growth Index Fund. This composition suggests a growth-oriented strategy with a tilt towards value in the small-cap space and growth in the large-cap arena, aiming to balance the potential high returns of small-cap investments with the stability of large-cap stocks.

Growth Info

Historically, this portfolio has achieved a Compound Annual Growth Rate (CAGR) of 17.93%, with a maximum drawdown of -38.34%. The days contributing to 90% of returns number just 18, indicating that while the portfolio has periods of significant gains, it also faces substantial volatility. This performance must be balanced with the understanding that past success does not guarantee future results, especially given the inherent risks associated with high-growth and small-cap investments.

Projection Info

Using Monte Carlo simulations, which forecast potential outcomes based on historical data, the portfolio shows a wide range of future performance scenarios. The median projection suggests a 785.4% return, with a 5th percentile at a significantly lower 76.2%, highlighting the uncertainty and risk involved. While these simulations offer a glimpse into possible futures, they are based on past trends and cannot account for unforeseen market shifts.

Asset classes Info

  • Stocks
    98%
  • Cash
    2%

With 98% of the portfolio in stocks and 2% in cash, the asset class allocation underscores a strong preference for equity investments, reflecting a high-risk, high-reward strategy. This concentration in stocks, while potentially lucrative, lacks the risk mitigation benefits of a more diversified asset mix, such as bonds or real estate, which could offer protection against stock market volatility.

Sectors Info

  • Technology
    26%
  • Financials
    18%
  • Industrials
    13%
  • Energy
    8%
  • Telecommunications
    8%
  • Consumer Discretionary
    7%
  • Health Care
    6%
  • Consumer Discretionary
    5%
  • Consumer Staples
    5%
  • Basic Materials
    3%
  • Real Estate
    1%

The portfolio's sector allocation shows a heavy emphasis on technology and financial services, followed by industrials and energy. This concentration in tech and finance sectors can drive growth but also increases susceptibility to sector-specific downturns. Diversifying across a wider range of sectors could help mitigate this risk while still capturing growth opportunities.

Regions Info

  • North America
    96%
  • Europe Developed
    3%
  • Latin America
    1%

Geographically, the portfolio is overwhelmingly concentrated in North America (96%), with minimal exposure to developed Europe and Latin America. This heavy domestic focus enhances exposure to US market performance but limits global diversification, which could spread risk and tap into growth opportunities in emerging and developed markets outside the US.

Market capitalization Info

  • Mega-cap
    34%
  • Micro-cap
    21%
  • Large-cap
    19%
  • Small-cap
    19%
  • Mid-cap
    5%

The market capitalization breakdown reveals a balanced mix between mega (34%), micro (21%), big (19%), small (19%), and medium (5%) caps. This distribution suggests a strategy that seeks to blend the growth potential of smaller companies with the stability of larger firms. However, the relatively low allocation to medium caps could indicate an opportunity to further diversify and smooth out portfolio volatility.

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 could potentially be optimized for a better risk-return ratio by adjusting asset allocations. While the current setup seeks growth, exploring diversification beyond heavy stock concentration and sector biases might improve the portfolio's efficiency, balancing risk while still targeting high returns.

Dividends Info

  • Avantis® U.S. Small Cap Value ETF 1.70%
  • FIDELITY MEGA CAP STOCK FUND FIDELITY MEGA CAP STOCK FUND 0.50%
  • FIDELITY LARGE CAP GROWTH INDEX FUND INSTITUTIONAL PREMIUM CLASS 0.30%
  • Weighted yield (per year) 0.92%

The total dividend yield of 0.92% contributes to the portfolio's overall returns but is relatively modest, reflecting the growth-focused nature of the investments. For investors seeking income, increasing exposure to higher-yielding assets could be beneficial, though it may come at the expense of growth potential.

Ongoing product costs Info

  • Avantis® U.S. Small Cap Value ETF 0.25%
  • FIDELITY MEGA CAP STOCK FUND FIDELITY MEGA CAP STOCK FUND 0.59%
  • FIDELITY LARGE CAP GROWTH INDEX FUND INSTITUTIONAL PREMIUM CLASS 0.04%
  • Weighted costs total (per year) 0.29%

With a total expense ratio (TER) of 0.29%, the portfolio's costs are relatively low, which is advantageous for long-term growth. Keeping costs down is crucial in maximizing net returns, especially in a growth-oriented portfolio where compound interest plays a significant role over time.

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