A love letter to Fidelity with a side of redundancy and zero diversification
Report created on Oct 3, 2025Risk profile
5/7
Diversification profile
2/5
Positions
-
FX Fidelity 500 Index Fund
FXAIX - US3159117502 80.00% -
FN FIDELITY ZERO LARGE CAP INDEX FUND
FNILX - US3159116280 20.00%
At first glance, this portfolio screams, "I found two funds I liked and then called it a day." With 80% in the Fidelity 500 Index Fund and the remaining 20% in the FIDELITY ZERO LARGE CAP INDEX FUND, it's like betting on the same horse twice in hopes it'll somehow win faster. It's an exercise in redundancy rather than diversification. While both funds are solid, putting all your eggs in two very similar baskets is not the diversification strategy it's cracked up to be.
Growth
Historically, pulling a 15.72% CAGR might seem like you've hit the jackpot, especially with such a simplistic approach. But let's not forget, even a broken clock is right twice a day. This performance is akin to riding the coattails of a bull market with blinders on. Sure, it's fun until the market decides to buck. That -33.78% max drawdown? That's the market reminding you it's not always sunshine and rainbows.
Projection
Monte Carlo analysis, with its fancy 1,000 simulations, suggests you might be sitting pretty with potential annualized returns of 17.44%. Remember, Monte Carlo is like weather forecasting for your portfolio; it's educated guessing. High percentile outcomes look great on paper, but they don't account for wild market swings or black swan events. Betting the farm on the 67th percentile is like planning your retirement based on winning the lottery.
Asset classes
- Stocks 100%
Having 100% in stocks is like playing poker with only high cards. Sure, it's thrilling when you win, but you'll feel every bump on the way down. Diversification across asset classes acts like shock absorbers for your portfolio. Right now, you're opting for a roller coaster when a scenic train ride might suit your long-term goals better.
Sectors
- Technology 33%
- Financials 14%
- Consumer Discretionary 11%
- Telecommunications 10%
- Health Care 10%
- Industrials 8%
- Consumer Staples 6%
- Energy 3%
- Utilities 2%
- Real Estate 2%
- Basic Materials 2%
With a third of your portfolio in technology, you're essentially riding the Silicon Valley Express. It's been a sweet ride, but sectors rotate in and out of favor like fashion trends. Overloading on tech and financial services while giving the cold shoulder to others like utilities or real estate is like wearing flip-flops in a snowstorm—ill-advised and uncomfortable in the long term.
Regions
- North America 99%
Ah, the classic "America or bust" strategy. With 99% in North America, you're missing out on the global buffet of opportunities. It's like going to an international food festival and only eating hamburgers. Sure, they're delicious, but wouldn't you want a little variety? Diversifying globally can actually reduce your portfolio's volatility and expose you to growth in emerging markets.
Market capitalization
- Mega-cap 46%
- Large-cap 35%
- Mid-cap 18%
- Small-cap 1%
Your portfolio's cap-weighted approach, favoring mega and big caps, suggests a play-it-safe strategy that ironically doesn't play it safe enough. You're riding on the success of giants, assuming they can't fall. However, ignoring small and mid-caps is like ignoring all the other fish in the sea—there's plenty more potential out there, not just the whales.
Redundant positions
-
High correlationFIDELITY ZERO LARGE CAP INDEX FUNDFidelity 500 Index Fund
Having assets in your portfolio that move in lockstep (like your two Fidelity funds) is like buying insurance for your car and your steering wheel. They're so closely correlated that if one fund takes a hit, the other is likely to follow suit, offering you no real protection. Diversification means finding assets that zig when others zag, not two peas in a pod.
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.
Your portfolio's current state is a classic case of "if it ain't broke, don't fix it" gone wrong. The Efficient Frontier is a concept aiming for the best possible returns for a given level of risk, and buddy, you're not on it. You've essentially built a two-legged stool and are surprised it's wobbly. Diversifying beyond highly correlated, large-cap funds is your ticket to stability and improved risk-adjusted returns.
Dividends
- FIDELITY ZERO LARGE CAP INDEX FUND 0.90%
- Fidelity 500 Index Fund 1.10%
- Weighted yield (per year) 1.06%
The dividend yield hovering around 1.06% is like finding loose change in the couch—it's nice, but you won't get rich off it. While not the main attraction for growth-focused investors, dividends can provide a steady income stream and a cushion during market downturns. Don't overlook the power of reinvesting dividends; it's the financial equivalent of compound interest's magic.
Ongoing product costs
- Fidelity 500 Index Fund 0.02%
- Weighted costs total (per year) 0.02%
Congratulations, your cost management is the one place where you didn't go off the rails. With a total expense ratio (TER) of 0.02%, you're skating by on the cheap, which is commendable. But remember, being cost-effective doesn't compensate for the lack of diversification. It's like being proud of a great deal on a car that only drives in circles.
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