Growth-focused portfolio with a strong tilt towards large-cap US equities and high dividend yield
Report created on Jun 11, 2025Risk profile
5/7
Diversification profile
2/5
Positions
-
FX Fidelity 500 Index Fund
FXAIX - US3159117502 90.00% -
JE JPMorgan Nasdaq Equity Premium Income ETF
JEPQ - US46654Q2030 10.00%
This portfolio is heavily concentrated, with 90% allocated to the Fidelity 500 Index Fund and 10% to the JPMorgan Nasdaq Equity Premium Income ETF. The composition suggests a strong preference for US large-cap equities, given the significant weighting towards the Fidelity 500 Index Fund, which tracks the performance of the S&P 500. This allocation strategy reflects a growth-oriented approach but with limited diversification across asset classes and geographies, potentially increasing volatility and risk.
Growth
Historically, the portfolio has demonstrated a Compound Annual Growth Rate (CAGR) of 14.28%, with a maximum drawdown of -18.69%. These figures suggest robust growth potential but also highlight periods of significant value decline, which investors should be prepared for. The days contributing to 90% of returns being limited to just 11.0 days indicate that much of the portfolio's gains can be attributed to relatively few, high-performing days.
Projection
The Monte Carlo simulation, with 1,000 iterations, projects a wide range of outcomes, with the median (50th percentile) suggesting a potential increase of 510.9% in portfolio value. This forward projection, while optimistic, should be interpreted with caution as it relies on historical data, which may not accurately predict future performance, especially in volatile or changing market conditions.
Asset classes
- Stocks 99%
- No data 1%
The portfolio's allocation is nearly entirely in stocks (99%), with a marginal unclassified segment. This concentrated exposure to equities underscores the portfolio's growth orientation but also its susceptibility to market volatility. Diversifying across different asset classes, such as bonds or real estate, could provide a buffer during stock market downturns.
Sectors
- Technology 33%
- Financials 13%
- Health Care 11%
- Telecommunications 10%
- Consumer Discretionary 9%
- Industrials 7%
- Consumer Staples 6%
- Energy 3%
- Utilities 3%
- Real Estate 2%
- Basic Materials 2%
- Consumer Discretionary 1%
Sector allocation is broadly diversified within the equity component, with a significant tilt towards Technology (33%). This sector bias towards tech and other high-growth areas like Financial Services and Healthcare aligns with the portfolio's growth ambitions. However, the heavy concentration in technology could expose the portfolio to sector-specific risks, such as regulatory changes or market sentiment shifts.
Regions
- North America 99%
- Europe Developed 1%
Geographic exposure is overwhelmingly North American (99%), with minimal exposure to Europe Developed (1%). This geographic concentration enhances the portfolio's risk from regional economic downturns or political instability. Incorporating more international exposure could potentially enhance returns and reduce risk through geographic diversification.
Market capitalization
- Mega-cap 47%
- Large-cap 34%
- Mid-cap 17%
- Small-cap 1%
The portfolio's market capitalization breakdown—Mega (47%), Big (34%), and Medium (17%)—indicates a preference for larger, more established companies. This strategy may offer stability and lower volatility compared to smaller cap stocks but might also limit opportunities for higher growth rates that smaller companies can offer.
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.
Considering the portfolio's current allocation and risk-return profile, there may be room for optimization towards the Efficient Frontier, where the risk-return ratio is maximized. This could involve diversifying across more asset classes and geographies, or adjusting sector and market cap exposures to balance risk with the potential for higher returns.
Dividends
- Fidelity 500 Index Fund 1.20%
- JPMorgan Nasdaq Equity Premium Income ETF 11.50%
- Weighted yield (per year) 2.23%
The portfolio's total dividend yield of 2.23%, boosted significantly by the JPMorgan Nasdaq Equity Premium Income ETF's 11.50% yield, contributes to its income generation capabilities. This high yield strategy complements the growth orientation but may also indicate exposure to higher risk assets within the dividend-paying spectrum.
Ongoing product costs
- Fidelity 500 Index Fund 0.02%
- JPMorgan Nasdaq Equity Premium Income ETF 0.35%
- Weighted costs total (per year) 0.05%
With an overall Total Expense Ratio (TER) of 0.05%, the portfolio benefits from low costs, which can significantly enhance long-term returns. The low cost is primarily due to the efficient expense ratio of the Fidelity 500 Index Fund. Maintaining low investment costs is crucial for maximizing net returns, especially in a low-diversity, high-growth strategy.
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