Growth-focused portfolio with high exposure to US equities and limited diversification

Report created on Jul 18, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

2/5
Low Diversity
Less diversification More diversification

Positions

This portfolio is heavily weighted towards US equities, with a 100% allocation in stock funds, including the Fidelity NASDAQ Composite Index Fund, Fidelity Total Market Index Fund, Fidelity 500 Index Fund, and Fidelity Large Cap Growth Index Fund. These funds are concentrated in large-cap and technology sectors, reflecting a growth-oriented strategy. However, the portfolio's diversification is low, with a significant overlap among the holdings of these funds. This concentration in similar asset classes and sectors increases the portfolio's vulnerability to market volatility in these areas.

Growth Info

With a Compound Annual Growth Rate (CAGR) of 17.05% and a maximum drawdown of -32.67%, the portfolio has demonstrated strong historical performance. However, the days contributing to 90% of returns being limited to 33.0 highlights the portfolio's returns are highly concentrated in a few significant market movements. While past performance is impressive, it's crucial to remember that it doesn't guarantee future results. Investors should consider whether the portfolio's risk level aligns with their risk tolerance and investment horizon.

Projection Info

The Monte Carlo simulation, using 1,000 iterations, projects a wide range of outcomes with the 50th percentile suggesting an 835.5% return. This optimistic median projection indicates potential for substantial growth, yet the broad range of possible outcomes underscores the inherent uncertainty in any market forecast. Investors should understand that these projections are based on historical data, which may not accurately predict future market conditions.

Asset classes Info

  • Stocks
    100%

The portfolio's exclusive investment in stocks, without allocation to other asset classes like bonds or real estate, maximizes growth potential but also increases risk. This singular focus on equities, particularly in the technology sector, can lead to higher volatility. Diversifying across different asset classes can help mitigate risk while still allowing for considerable growth.

Sectors Info

  • Technology
    39%
  • Consumer Discretionary
    12%
  • Telecommunications
    12%
  • Financials
    10%
  • Health Care
    9%
  • Industrials
    6%
  • Consumer Staples
    5%
  • Energy
    2%
  • Utilities
    2%
  • Real Estate
    2%
  • Basic Materials
    1%

The sector allocation heavily favors technology, consumer cyclical, and communication services, which are sectors known for their growth potential but also for their volatility. This concentration enhances the portfolio's growth prospects but also its exposure to sector-specific downturns. Diversifying into more defensive sectors or increasing allocations to underrepresented sectors could provide a buffer during market dips.

Regions Info

  • North America
    99%
  • Europe Developed
    1%

With 99% of assets in North America, the portfolio's geographic exposure is highly concentrated. This focus on the US market has likely contributed to its strong performance, given the market's historical growth. However, this concentration also exposes the portfolio to regional economic and political risks. Expanding geographic diversification could reduce risk and tap into growth opportunities in other markets.

Market capitalization Info

  • Mega-cap
    51%
  • Large-cap
    27%
  • Mid-cap
    16%
  • Small-cap
    4%
  • Micro-cap
    1%

The portfolio's emphasis on mega and large-cap stocks aligns with its growth profile and risk classification. These companies typically offer more stability than their smaller counterparts, but the portfolio may miss out on the higher growth potential of small and micro-cap stocks. Considering a modest increase in exposure to smaller companies could introduce more growth opportunities, albeit with higher volatility.

Redundant positions Info

  • FIDELITY NASDAQ COMPOSITE INDEX FUND FIDELITY NASDAQ COMPOSITE INDEX FUND
    Fidelity Total Market Index Fund
    FIDELITY LARGE CAP GROWTH INDEX FUND INSTITUTIONAL PREMIUM CLASS
    Fidelity 500 Index Fund
    High correlation

The high correlation among the portfolio's assets limits its diversification benefits. Since all funds are focused on similar sectors and market caps, they are likely to respond similarly to market changes. Introducing assets with low correlation to the current holdings could enhance the portfolio's risk-adjusted returns by reducing overall 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.

The portfolio could benefit from optimization to improve its risk-return profile. Currently, the high correlation between assets suggests an opportunity to reduce overlap and enhance diversification without necessarily sacrificing returns. By reallocating towards less correlated assets, the portfolio could achieve a more efficient position on the Efficient Frontier, optimizing the balance between risk and return.

Dividends Info

  • FIDELITY NASDAQ COMPOSITE INDEX FUND FIDELITY NASDAQ COMPOSITE INDEX FUND 0.60%
  • Fidelity Total Market Index Fund 1.00%
  • FIDELITY LARGE CAP GROWTH INDEX FUND INSTITUTIONAL PREMIUM CLASS 0.30%
  • Fidelity 500 Index Fund 0.90%
  • Weighted yield (per year) 0.78%

The portfolio's average dividend yield of 0.78% contributes to its total return, providing a steady income stream in addition to capital appreciation. While the yield is modest, it's typical for growth-oriented portfolios, which prioritize reinvestment and growth over immediate income. Investors seeking higher income might consider diversifying into assets with higher dividend yields.

Ongoing product costs Info

  • FIDELITY NASDAQ COMPOSITE INDEX FUND FIDELITY NASDAQ COMPOSITE INDEX FUND 0.29%
  • Fidelity Total Market Index Fund 0.02%
  • FIDELITY LARGE CAP GROWTH INDEX FUND INSTITUTIONAL PREMIUM CLASS 0.04%
  • Fidelity 500 Index Fund 0.02%
  • Weighted costs total (per year) 0.10%

With a total expense ratio (TER) of 0.10%, the portfolio is cost-efficient, which is beneficial for long-term growth as lower costs translate to higher net returns. This efficiency is particularly noteworthy given the portfolio's focus on funds, which can sometimes come with higher management fees. Maintaining low costs should remain a priority in any portfolio adjustments.

What next?

Ready to invest in this portfolio?

Select a broker that fits your needs and watch for low fees to maximize your returns.

Select broker

Create your own report?

Analyze your portfolio

Join our community!

Join Discord

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