A well-diversified portfolio with a balanced approach to global and US markets

Report created on Aug 3, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

The portfolio is structured with a significant focus on equities, split between US and international markets. It comprises 40% in the Fidelity Total International Index Fund, 30% in the iShares Core S&P 500 ETF, and 30% in the Vanguard Extended Market Index Fund ETF Shares. This composition reflects a strategic approach to diversification, aiming to capture growth across major global economies and sectors. The allocation across only stock asset classes, with a minor cash position, indicates a growth-oriented strategy within a balanced risk profile.

Growth Info

Historically, the portfolio has achieved a Compound Annual Growth Rate (CAGR) of 12.16%, with a maximum drawdown of -36.05%. This performance suggests resilience and the potential for solid returns over time, although the drawdown highlights periods of significant volatility. The days contributing most to returns emphasize the impact of short-term market movements on performance, underscoring the importance of a long-term investment horizon.

Projection Info

Monte Carlo simulations project a wide range of outcomes, with a median increase of 362.2% in portfolio value, indicating potential for substantial growth. The simulations, based on historical data, show a high likelihood of positive returns, but it's crucial to remember that these projections cannot guarantee future performance. They offer a useful tool for understanding potential volatility and assessing risk tolerance.

Asset classes Info

  • Stocks
    98%
  • Cash
    2%

The portfolio's asset allocation is heavily weighted towards stocks (98%), with a minimal cash reserve (2%). This allocation is consistent with a growth-oriented strategy but may exhibit higher volatility. Stocks offer the potential for higher returns compared to other asset classes like bonds or real estate, but they come with increased risk, particularly in short-term market downturns.

Sectors Info

  • Technology
    22%
  • Financials
    18%
  • Industrials
    14%
  • Health Care
    9%
  • Telecommunications
    7%
  • Consumer Discretionary
    7%
  • Consumer Staples
    5%
  • Basic Materials
    4%
  • Consumer Discretionary
    4%
  • Energy
    4%
  • Real Estate
    4%
  • Utilities
    2%

Sector allocation is broadly diversified, with a heavier emphasis on technology and financial services. This sectoral distribution aligns with the current global economic drivers but may expose the portfolio to sector-specific risks, such as regulatory changes or economic cycles. Diversifying across sectors can help mitigate these risks while capitalizing on growth opportunities in different areas of the economy.

Regions Info

  • North America
    63%
  • Europe Developed
    16%
  • Japan
    6%
  • Asia Emerging
    6%
  • Asia Developed
    4%
  • Australasia
    2%
  • Africa/Middle East
    1%
  • Latin America
    1%

Geographic allocation shows a strong emphasis on North America (63%) and developed European markets (16%), with smaller exposures to emerging markets. This geographic spread helps mitigate risk by not over-concentrating in any single region. However, the relatively modest exposure to emerging markets may limit potential high-growth opportunities available in these regions.

Market capitalization Info

  • Mega-cap
    32%
  • Large-cap
    23%
  • Mid-cap
    21%
  • Small-cap
    15%
  • Micro-cap
    5%

The market capitalization breakdown reveals a balanced approach, with a mix of mega, big, medium, small, and micro-cap stocks. This diversity helps spread risk across different company sizes, each with its growth potential and volatility levels. Smaller companies, while riskier, can offer higher growth potential, balancing the stability of larger, more established companies.

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 allocation appears to be efficiently balanced between risk and return, as suggested by its performance and diversification scores. However, continuous assessment using tools like the Efficient Frontier can help identify opportunities for further optimization. It's important to remember that while optimization aims for the best risk-return ratio, it also needs to align with the investor's goals and risk tolerance.

Dividends Info

  • FIDELITY TOTAL INTERNATIONAL INDEX FUND INSTITUTIONAL PREMIUM CLASS 2.50%
  • iShares Core S&P 500 ETF 1.30%
  • Vanguard Extended Market Index Fund ETF Shares 1.10%
  • Weighted yield (per year) 1.72%

Dividend yields contribute to the portfolio's overall return, with a total yield of 1.72%. While not the primary focus, dividends provide a steady income stream and can offer a buffer during market volatility. Reinvesting dividends can also compound growth over time, enhancing long-term returns.

Ongoing product costs Info

  • FIDELITY TOTAL INTERNATIONAL INDEX FUND INSTITUTIONAL PREMIUM CLASS 0.06%
  • iShares Core S&P 500 ETF 0.03%
  • Vanguard Extended Market Index Fund ETF Shares 0.06%
  • Weighted costs total (per year) 0.05%

The portfolio benefits from low costs, with a total expense ratio (TER) of 0.05%. Low costs are crucial for long-term investment success, as they directly impact net returns. Keeping costs minimal ensures more of the portfolio's gains are retained, compounding growth over time.

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