A balanced and broadly diversified portfolio with a strong focus on stocks and minimal bond exposure
Report created on Jul 31, 2025Risk profile
4/7
Diversification profile
4/5
Positions
-
FX Fidelity 500 Index Fund
FXAIX - US3159117502 56.86% -
SW SCHWAB TARGET 2055 INDEX FUND INSTITUTIONAL SHARES
SWYJX - US80850L7670 21.93% -
FS FIDELITY INTERNATIONAL INDEX FUND INSTITUTIONAL PREMIUM CLASS
FSPSX - US3159117270 14.12% -
SW Schwab US Aggregate Bond Index Fund
SWAGX - US8085177181 5.20% -
SW SCHWAB TARGET 2050 INDEX FUND INSTITUTIONAL SHARES
SWYMX - US80850L7837 1.88%
The portfolio is heavily weighted towards stock funds, comprising 93% of the allocation, with a significant portion in the Fidelity 500 Index Fund. This suggests a strong focus on equities, particularly those mirroring the performance of the S&P 500. The inclusion of both the SCHWAB TARGET 2055 and 2050 INDEX FUNDS, alongside the Fidelity International Index Fund, indicates an attempt to diversify across time horizons and geographies. However, the bond allocation, primarily through the Schwab US Aggregate Bond Index Fund, is minimal, which may affect the portfolio's overall risk profile.
Growth
With a Compound Annual Growth Rate (CAGR) of 12.70% and a maximum drawdown of -31.97%, the portfolio has demonstrated strong growth potential albeit with significant volatility. The days contributing to 90% of returns being concentrated in just 25 days highlights the portfolio's exposure to market swings. This performance, while impressive, underscores the importance of understanding the inherent risks and the impact of market volatility on portfolio value.
Projection
The Monte Carlo simulation, with 1,000 iterations, projects a wide range of potential outcomes, from a 28.3% increase at the 5th percentile to a 316.8% increase at the 67th percentile, indicating a high degree of uncertainty in future performance. The annualized return across all simulations stands at 9.82%, suggesting optimistic growth prospects. However, it's crucial to note that these projections are based on historical data and cannot guarantee future performance.
Asset classes
- Stocks 93%
- Bonds 7%
- Cash 1%
The portfolio's asset class allocation, with a dominant 93% in stocks, aligns with a growth-oriented strategy but carries higher volatility. The 7% bond allocation provides some cushion against stock market fluctuations, yet may not be sufficient for all market conditions. This allocation strategy is suitable for investors with a higher risk tolerance and a longer time horizon.
Sectors
- Technology 25%
- Financials 15%
- Health Care 10%
- Consumer Discretionary 9%
- Industrials 9%
- Telecommunications 8%
- Consumer Staples 6%
- Real Estate 4%
- Energy 3%
- Utilities 3%
- Basic Materials 3%
The sectoral distribution shows a heavy tilt towards technology, financial services, and healthcare, which are sectors known for their growth potential but also for their volatility. This concentration may increase the portfolio's sensitivity to sector-specific risks. Diversifying into more defensive sectors or increasing the allocation to underrepresented sectors could provide a more balanced risk profile.
Regions
- North America 74%
- Europe Developed 13%
- No data 5%
- Japan 4%
- Australasia 1%
- Asia Developed 1%
- Asia Emerging 1%
With 74% of assets allocated to North America and a significant portion in developed Europe, the portfolio has a strong focus on developed markets. The minimal exposure to emerging markets and other regions may limit potential growth opportunities and diversification benefits. Increasing geographic diversity could enhance the portfolio's ability to mitigate region-specific risks.
Market capitalization
- Mega-cap 43%
- Large-cap 31%
- Mid-cap 15%
- Small-cap 2%
- Micro-cap 1%
The market capitalization breakdown, with a focus on mega and big cap stocks, suggests a preference for established, large-scale companies. While this may offer stability and resilience, the limited exposure to medium, small, and micro-cap stocks could restrict potential high-growth opportunities. Balancing the allocation across different market caps could enhance growth prospects and diversification.
Redundant positions
-
High correlationSCHWAB TARGET 2050 INDEX FUND INSTITUTIONAL SHARESSCHWAB TARGET 2055 INDEX FUND INSTITUTIONAL SHARES
The high correlation between the SCHWAB TARGET 2050 and 2055 INDEX FUNDS indicates redundancy, which does not contribute to diversification. This overlap suggests that the portfolio could benefit from reallocating assets to non-correlated investments to enhance portfolio efficiency and reduce risk without sacrificing potential returns.
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 presence of highly correlated assets indicates an opportunity for optimization. Removing or reducing exposure to overlapping investments can improve the portfolio's diversification and risk profile. Employing the Efficient Frontier concept could help in identifying the optimal asset allocation that maximizes returns for a given level of risk.
Dividends
- FIDELITY INTERNATIONAL INDEX FUND INSTITUTIONAL PREMIUM CLASS 2.40%
- Fidelity 500 Index Fund 0.90%
- Schwab US Aggregate Bond Index Fund 3.70%
- SCHWAB TARGET 2055 INDEX FUND INSTITUTIONAL SHARES 1.80%
- SCHWAB TARGET 2050 INDEX FUND INSTITUTIONAL SHARES 1.80%
- Weighted yield (per year) 1.47%
The dividend yields, with an overall portfolio yield of 1.47%, contribute to the portfolio's total return, providing a steady income stream. However, the focus on lower-yielding stock funds suggests that income generation is not the primary goal. For investors seeking higher income, reallocating a portion towards higher-yielding assets could be beneficial.
Ongoing product costs
- FIDELITY INTERNATIONAL INDEX FUND INSTITUTIONAL PREMIUM CLASS 0.04%
- Fidelity 500 Index Fund 0.02%
- Schwab US Aggregate Bond Index Fund 0.04%
- SCHWAB TARGET 2055 INDEX FUND INSTITUTIONAL SHARES 0.08%
- SCHWAB TARGET 2050 INDEX FUND INSTITUTIONAL SHARES 0.08%
- Weighted costs total (per year) 0.04%
The portfolio's overall low cost, with a Total Expense Ratio (TER) of 0.04%, is commendable. Keeping investment costs low is crucial for maximizing long-term returns, as even small differences in fees can significantly impact portfolio growth over time. This cost efficiency is a strong aspect of the portfolio's construction.
What next?
Ready to invest in this portfolio?
Select a broker that fits your needs and watch for low fees to maximize your returns.
Create your own report?
Join our community!
Compare your holdings
How much do the funds you hold actually overlap with the ones people weigh them against?
The information provided on this platform is for informational purposes only and should not be considered as financial or investment advice. Insightfolio does not provide investment advice, personalized recommendations, or guidance regarding the purchase, holding, or sale of financial assets. The tools and content are intended for educational purposes only and are not tailored to individual circumstances, financial needs, or objectives.
Insightfolio assumes no liability for the accuracy, completeness, or reliability of the information presented. Users are solely responsible for verifying the information and making independent decisions based on their own research and careful consideration. Use of the platform should not replace consultation with qualified financial professionals.
Investments involve risks. Users should be aware that the value of investments may fluctuate and that past performance is not an indicator of future results. Investment decisions should be based on personal financial goals, risk tolerance, and independent evaluation of relevant information.
Insightfolio does not endorse or guarantee the suitability of any particular financial product, security, or strategy. Any projections, forecasts, or hypothetical scenarios presented on the platform are for illustrative purposes only and are not guarantees of future outcomes.
By accessing the services, information, or content offered by Insightfolio, users acknowledge and agree to these terms of the disclaimer. If you do not agree to these terms, please do not use our platform.
Instrument logos provided by Elbstream.
Help us improve Insightfolio
Your feedback makes a difference! Share your thoughts in our quick survey. Take the survey