Three fund growth portfolio with strong US tilt and a clear value orientation across global stocks
Report created on Jul 28, 2026Risk profile
5/7
Diversification profile
3/5
Positions
-
FS Fidelity Total Market Index Fund
FSKAX - US3159116934 60.00% -
FT FIDELITY TOTAL INTERNATIONAL INDEX FUND INSTITUTIONAL PREMIUM CLASS
FTIHX - US31635V6386 25.00% -
FI Fidelity Small Cap Value Index Fund
FISVX - US31635T7735 15.00%
This portfolio is built from three broad stock index funds, with about 60% in a total US market fund, 25% in an international developed and emerging markets index, and 15% in a small-cap value index. That structure creates a simple but deliberate design: a US core, a sizeable overseas sleeve, and a focused tilt toward smaller, cheaper companies. A three-fund setup like this is easy to follow and tends to behave predictably because each holding tracks a clear index. The overall mix leans toward growth assets, so returns will largely follow global stock markets rather than cash or bonds, with bigger swings along the way.
Growth
From mid-2019 to mid-2026, $1,000 in this portfolio grew to about $2,427, for a compound annual growth rate (CAGR) of 13.49%. CAGR is like your average speed on a long drive, smoothing out stops and traffic. Over the same period, the US market grew faster at 15.41%, while the global market returned 12.87%. So the portfolio lagged the pure US benchmark but beat the broader world index. The worst drop was about -35.8% during early 2020, slightly deeper than both benchmarks. This pattern suggests meaningful equity risk, but with performance broadly in line with global markets, especially outside the US.
Projection
The Monte Carlo projection uses thousands of simulated paths based on past returns and volatility to estimate possible 15‑year outcomes. It’s like running many alternate histories to see a range of what could happen, not what will happen. The median path grows $1,000 to around $2,836, with a “middle” band from roughly $1,837 to $4,340 and a wide 5–95% range from about $970 to $7,937. The average simulated annual return is 8.24%, and about three-quarters of paths end positive. These numbers highlight both the upside potential and the real possibility of long flat or negative stretches, even with a growth‑oriented mix.
Asset classes
- Stocks 100%
All of this portfolio is in stocks, with 0% in bonds or cash. That makes the asset mix very straightforward: full exposure to equity growth and equity risk. Being 100% in stocks typically means larger swings in value, especially around recessions or sharp market shocks, but also more growth potential over long stretches than portfolios that blend in bonds. Compared with many broad benchmarks that include some fixed income, this is a more aggressive setup. The full‑equity allocation is consistent with the “Growth” risk classification, and it puts diversification pressure on sectors, geographies, and company sizes rather than on different asset classes.
Sectors
- Technology 29%
- Financials 16%
- Industrials 11%
- Consumer Discretionary 9%
- Health Care 9%
- Telecommunications 7%
- Energy 4%
- Consumer Staples 4%
- Basic Materials 4%
- Real Estate 3%
- Utilities 3%
Sector exposure is fairly broad, with technology the largest at 29%, followed by financials at 16% and industrials at 11%. Consumer areas, health care, communications, and other sectors are all represented with mid‑single‑digit allocations. This looks similar to many global equity benchmarks where tech and financials are dominant, which is a positive sign for diversification. At the same time, a tech‑heavy tilt can mean more sensitivity to interest rates and market sentiment about innovation and future growth. Because the portfolio tracks total‑market style indices, sector weights will naturally drift with global market cap trends rather than express active sector bets.
Regions
- North America 76%
- Europe Developed 9%
- Asia Developed 5%
- Japan 4%
- Asia Emerging 3%
- Australasia 1%
- Africa/Middle East 1%
- Latin America 1%
Geographically, the portfolio is strongly tilted to North America at 76%, with the rest spread across Europe, developed Asia, Japan, and smaller allocations to emerging regions. This is a much larger North American share than the global equity market, where the US is big but not three‑quarters of the total. The result is a noticeable home‑country tilt, which often feels familiar but ties outcomes tightly to one economy, one central bank, and one currency. The international sleeve still brings in exposure to different growth drivers, policy regimes, and currencies, which can help when regional performance cycles diverge from the US.
Market capitalization
- Mega-cap 37%
- Large-cap 26%
- Mid-cap 16%
- Small-cap 11%
- Micro-cap 9%
By market size, the portfolio is anchored in larger companies but with meaningful space for smaller firms: about 37% in mega‑caps, 26% in large‑caps, 16% in mid‑caps, 11% in small‑caps, and 9% in micro‑caps. That’s broader than many cap‑weighted portfolios that lean even more heavily on mega‑caps. Smaller and micro‑cap stocks tend to be more volatile and more sensitive to economic shifts but can offer higher long‑term growth potential. The dedicated small‑cap value fund amplifies this effect. Overall, the spread across company sizes supports diversification, though it also adds some extra short‑term bumpiness compared with a pure large‑cap mix.
Factors
Factor exposure shows a clear tilt toward value at 61%, above the neutral 50% baseline. Factor exposure is like measuring how much your portfolio leans into certain characteristics, such as cheapness (value) or recent winners (momentum), that research links to returns. A value tilt means the portfolio holds more companies trading at lower prices relative to fundamentals than the broad market. That can help when cheap stocks recover after being out of favor, but it may lag when investors flock to high‑growth or popular names. Other factors—size, momentum, quality, and low volatility—sit near neutral, while yield is modestly low, consistent with a growth‑oriented equity mix.
Risk contribution
-
Fidelity Total Market Index Fund
Weight: 60.00% 61.5% -
FIDELITY TOTAL INTERNATIONAL INDEX FUND INSTITUTIONAL PREMIUM CLASS
Weight: 25.00% 20.4% -
Fidelity Small Cap Value Index Fund
Weight: 15.00% 18.1%
Risk contribution shows how much each holding drives the portfolio’s ups and downs, which can differ from simple weights. The total US market fund is 60% of assets but about 61% of risk, so it influences performance roughly in line with its size. The international fund is 25% of assets but only about 20% of risk, meaning it slightly dampens overall volatility. The small‑cap value fund is 15% of assets but over 18% of risk, so it punches above its weight in terms of swings. This pattern is common: smaller and value stocks tend to be choppier, so even a modest allocation can meaningfully affect day‑to‑day movement.
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 efficient frontier analysis compares risk (volatility) to expected return for different mixes of the same three funds. The current portfolio shows a Sharpe ratio of 0.55, which measures return per unit of risk above cash. The optimal mix on this frontier has a higher Sharpe of 0.73 with slightly higher risk and return, while the minimum‑variance mix has lower risk but also lower return. Importantly, the report notes this portfolio sits on or very near the efficient frontier, meaning, given these three building blocks, the risk/return tradeoff is already quite efficient and not obviously leaving a lot of “free” diversification on the table.
Dividends
- Fidelity Small Cap Value Index Fund 1.80%
- Fidelity Total Market Index Fund 1.00%
- FIDELITY TOTAL INTERNATIONAL INDEX FUND INSTITUTIONAL PREMIUM CLASS 2.50%
- Weighted yield (per year) 1.50%
The portfolio’s total dividend yield is about 1.5%, combining roughly 1.0% from the US total market fund, 2.5% from the international fund, and 1.8% from the small‑cap value fund. Dividend yield is the cash paid out each year as a percentage of the investment value, like rent from owning stocks. Here, dividends provide a modest but steady component of total return, with most growth historically coming from price appreciation. The slightly higher yield on international and value holdings is typical, as these segments often include more mature or out‑of‑favor companies that return more cash to shareholders instead of reinvesting everything.
Ongoing product costs
- Fidelity Small Cap Value Index Fund 0.05%
- Fidelity Total Market Index Fund 0.02%
- FIDELITY TOTAL INTERNATIONAL INDEX FUND INSTITUTIONAL PREMIUM CLASS 0.06%
- Weighted costs total (per year) 0.03%
Costs in this portfolio are impressively low. The total expense ratio (TER) across funds averages about 0.03% per year, with individual funds ranging from 0.02% to 0.06%. TER is the annual fee charged by the funds, taken out of returns behind the scenes. For context, many actively managed funds charge 0.5%–1.0% or more. Keeping fees this low means more of the portfolio’s gross return stays in the account, and that difference compounds over time. This cost profile aligns well with index‑based best practices and is a real structural strength of the portfolio, especially over long horizons.
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