Balanced portfolio with a strong focus on technology and North American equities

Report created on Aug 6, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

The portfolio predominantly comprises mutual funds and ETFs, with a notable allocation towards individual stocks, particularly in the technology and industrials sectors. The significant positions in Vanguard and Fidelity funds suggest a preference for well-established, low-cost index funds and actively managed income funds. The individual stock selections, such as Rolls Royce and Palantir, introduce specific growth and value plays, which diversify the portfolio beyond broad market exposures. This mix underscores a strategy aiming to balance growth with income, leveraging the stability and dividend yield of large funds while seeking higher returns from selected equities.

Growth Info

Historically, the portfolio has exhibited a robust Compound Annual Growth Rate (CAGR) of 23.64%, outpacing many benchmarks. This performance, coupled with a maximum drawdown of -18.76%, reflects both the portfolio's resilience during market downturns and its ability to capture upside in favorable conditions. The concentration in high-performing sectors like technology has likely contributed significantly to these results. However, it's crucial to remember that past performance is not always indicative of future results, especially in a rapidly changing economic landscape.

Projection Info

Monte Carlo simulations project a wide range of outcomes, emphasizing the inherent uncertainty in financial markets. With 957 out of 1,000 simulations yielding positive returns, the portfolio exhibits potential for future growth. However, the substantial variance between the 5th and 67th percentiles underscores the risk involved. These projections, while useful for understanding possible future scenarios, rely on historical data and cannot account for unforeseen market developments. Investors should view these results as one of many tools in making informed decisions.

Asset classes Info

  • Stocks
    81%
  • Bonds
    18%
  • Cash
    1%

The portfolio's asset allocation leans heavily towards stocks (81%), with a smaller bond component (18%) and minimal cash holdings (1%). This distribution aligns with a balanced risk profile aiming for growth while maintaining some level of income generation and capital preservation through bonds. The stock-heavy approach is suitable for medium to long-term horizons, assuming the investor can withstand periods of market volatility. Adjusting the bond allocation could further tailor the portfolio's risk-return profile to the investor's specific needs and market outlook.

Sectors Info

  • Technology
    27%
  • Industrials
    16%
  • Financials
    15%
  • Health Care
    11%
  • Consumer Discretionary
    7%
  • Consumer Staples
    6%
  • Energy
    5%
  • Telecommunications
    4%
  • Utilities
    3%
  • Basic Materials
    2%
  • Real Estate
    2%
  • Consumer Discretionary
    1%

Sectoral allocation reveals a strong emphasis on technology, industrials, and financial services, which together constitute over half of the portfolio. This concentration in technology and industrials suggests a growth-oriented strategy, while the significant allocation to financial services may offer stability and dividends. However, such sector concentrations also expose the portfolio to sector-specific risks. Diversifying across a wider range of sectors could mitigate these risks and potentially smooth out returns over time.

Regions Info

  • North America
    84%
  • Europe Developed
    13%
  • Japan
    1%
  • Asia Emerging
    1%
  • Asia Developed
    1%

The geographic distribution, with a dominant 84% in North America and 13% in developed Europe, reflects a focus on established markets known for stability and robust regulatory environments. However, this concentration may limit exposure to the growth potential in emerging markets and diversification benefits they can offer. Introducing a more global perspective could enhance the portfolio's growth prospects and resilience against region-specific economic downturns.

Market capitalization Info

  • Mega-cap
    30%
  • Large-cap
    27%
  • Mid-cap
    13%
  • Small-cap
    7%
  • Micro-cap
    3%

The market capitalization breakdown shows a balanced approach, with allocations to mega (30%), big (27%), and medium (13%) cap stocks, complemented by smaller positions in small (7%) and micro (3%) caps. This spread across market caps can help in capturing growth opportunities while mitigating risk through exposure to more stable, large-cap companies. Adjusting the balance between these categories can further refine the portfolio's risk and return characteristics.

Redundant positions Info

  • FIDELITY ZERO TOTAL MARKET INDEX FUND
    FIDELITY ZERO LARGE CAP INDEX FUND
    High correlation
  • FIDELITY SMALL CAP INDEX FUND INSTITUTIONAL PREMIUM CLASS
    FIDELITY ZERO EXTENDED MARKET INDEX FUND
    High correlation

The high correlation observed between certain fund pairs, like the Fidelity Zero Total Market and Large Cap Index Funds, indicates overlapping exposures that may not contribute to diversification. Identifying and addressing these overlaps can enhance the portfolio's efficiency by reducing redundancy and potentially lowering risk without sacrificing returns. Diversification across uncorrelated assets is key to achieving a more resilient portfolio.

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.

The portfolio's current setup suggests room for optimization, particularly by addressing asset correlation and adjusting allocations for improved diversification. Achieving an optimal risk-return balance involves not just diversification but also strategic asset selection and allocation. The projected optimal portfolio suggests a significant potential for increased returns at a comparable risk level, highlighting the benefits of periodically reviewing and adjusting the portfolio composition.

Dividends Info

  • FIDELITY ZERO LARGE CAP INDEX FUND 1.00%
  • FIDELITY SMALL CAP INDEX FUND INSTITUTIONAL PREMIUM CLASS 0.90%
  • FIDELITY ZERO INTERNATIONAL INDEX FUND 2.50%
  • FIDELITY ZERO EXTENDED MARKET INDEX FUND 1.20%
  • FIDELITY ZERO TOTAL MARKET INDEX FUND 1.10%
  • Rolls Royce Holdings plc 0.60%
  • Schwab U.S. Dividend Equity ETF 3.80%
  • VANGUARD STAR FUND VANGUARD STAR FUND 1.40%
  • Vanguard Dividend Appreciation Index Fund ETF Shares 1.70%
  • VANGUARD WELLINGTON FUND INVESTOR SHARES 1.60%
  • Vanguard Wellesley Income Fund 2.70%
  • Weighted yield (per year) 1.55%

The portfolio's average dividend yield of 1.55% contributes to its income generation, complementing capital gains from equity growth. The varied yields across holdings, from the higher dividend Schwab U.S. Dividend Equity ETF to the lower yield of Rolls Royce, illustrate a balanced approach to income and growth. For investors prioritizing income, focusing on securities with higher dividend yields or reallocating towards income-focused funds could further enhance cash flow.

Ongoing product costs Info

  • FIDELITY SMALL CAP INDEX FUND INSTITUTIONAL PREMIUM CLASS 0.02%
  • Schwab U.S. Dividend Equity ETF 0.06%
  • VANGUARD STAR FUND VANGUARD STAR FUND 0.30%
  • Vanguard Dividend Appreciation Index Fund ETF Shares 0.06%
  • VANGUARD WELLINGTON FUND INVESTOR SHARES 0.25%
  • Vanguard Wellesley Income Fund 0.23%
  • Weighted costs total (per year) 0.10%

With an overall Total Expense Ratio (TER) of 0.10%, the portfolio benefits from relatively low costs, which is commendable. Lower costs directly translate to higher net returns over time, making this an efficient setup. However, continuous monitoring of fund expenses and performance is crucial, as even small percentage differences can significantly impact long-term growth.

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