A highly diversified stock heavy portfolio with strong growth tilt and very low ongoing costs
Report created on Mar 8, 2026Risk profile
4/7
Diversification profile
5/5
Positions
-
SS STATE STREET EQUITY 500 INDEX FUND CLASS K
SSSYX - US85749R1564 40.00% -
SS STATE STREET TARGET RETIREMENT 2050 FUND CLASS K
SSDLX - US85749R6365 35.00% -
FS FIDELITY SMALL CAP INDEX FUND INSTITUTIONAL PREMIUM CLASS
FSSNX - US3161461823 25.00%
This portfolio is built from three broad funds: a large core index fund, a target‑date fund, and a small‑cap index fund. Together they create a simple but powerful structure that’s heavily tilted to stocks, with a balanced mix between large established companies and smaller firms. Compared with a typical “balanced” benchmark that might hold 40–60% in bonds, this setup is clearly more growth‑oriented. That matters because returns can be higher, but swings will be larger in both directions. If the growth tilt is intentional, staying the course and rebalancing occasionally can work well; if not, gradually nudging toward more bonds could better match a truly balanced profile.
Growth
Using a simple example, a hypothetical $10,000 invested in this mix would have grown at a compound annual growth rate (CAGR) of about 14.84%. CAGR is like average speed on a long road trip: it smooths out all the ups and downs into one yearly number. This result is very strong and likely ahead of many balanced benchmarks over the same period, helped by the high stock allocation. However, the portfolio has also seen a maximum drawdown of roughly –34%, meaning at one point it was down about a third from a prior peak. Past returns are encouraging, but they do not guarantee similar results in the future.
Projection
The Monte Carlo simulation uses historical return and volatility patterns to create 1,000 alternate futures for the portfolio. Think of it as rolling the dice on markets many times to see a range of possible outcomes. The median projection shows the initial value growing to about 575% of the starting point, while even the lower 5th percentile ends close to breakeven at 94%. An overall simulated annualized return near 16% is strong, but this is purely model‑based. These outcomes rely on history repeating to some degree, which it rarely does perfectly. It’s wise to interpret them as rough scenario ranges, not as promises of what will actually happen.
Asset classes
- Stocks 95%
- Bonds 4%
- Cash 1%
The allocation is about 95% stock, 4% bonds, and 1% cash. That’s far more aggressive than many “balanced” portfolios, which often hold 30–60% in fixed income. Stocks drive long‑term growth, but they also cause most of the short‑term turbulence. Bonds and cash act like shock absorbers, softening the ride when markets drop. From a long‑horizon growth perspective, this stock‑heavy structure is powerful and aligns with return‑seeking goals. For someone who wants smoother performance, gradually increasing the bond slice—either by shifting within the existing target‑date fund or adding a dedicated bond holding—can bring behavior more in line with a classic balanced profile.
Sectors
- Technology 26%
- Financials 15%
- Health Care 12%
- Industrials 11%
- Consumer Discretionary 10%
- Telecommunications 8%
- Consumer Staples 4%
- Energy 4%
- Basic Materials 3%
- Real Estate 3%
- Utilities 3%
Sector exposure is well spread: technology leads at 26%, followed by financial services, healthcare, industrials, and consumer areas. This looks very similar to major broad‑market benchmarks, which is a good sign that the portfolio is not making big sector bets. Tech and growth‑oriented areas will likely drive a lot of performance, which can be great in strong economies but may feel bumpier during rate hikes or market stress. Because the sector mix aligns closely with global standards, it already provides solid diversification. The main focus going forward should be simply checking once in a while that no single sector meaningfully drifts far above what feels comfortable.
Regions
- North America 85%
- Europe Developed 6%
- Japan 2%
- Asia Developed 2%
- Asia Emerging 2%
- Australasia 1%
- Latin America 1%
- Africa/Middle East 1%
Geographically, about 85% is in North America, with the rest spread across Europe, Japan, other developed regions, and a modest slice in emerging areas. This strong home bias matches many standard U.S. benchmarks and has been rewarding in recent years as U.S. markets outperformed many others. At the same time, it means results are heavily tied to one region’s economic and policy environment. A bit more international exposure can sometimes reduce risk and tap into different growth engines. If a more globally balanced profile is desired, nudging allocations toward funds with higher non‑U.S. weights could create more even regional representation over time without disrupting the core structure.
Market capitalization
- Mega-cap 31%
- Large-cap 23%
- Small-cap 14%
- Mid-cap 14%
- Micro-cap 12%
By market size, the mix holds roughly 31% mega‑cap, 23% big‑cap, 14% mid‑cap, 14% small‑cap, and 12% micro‑cap stocks. This is more tilted toward smaller companies than many broad indexes, which often lean more heavily toward mega and large caps. Smaller stocks tend to be more volatile day‑to‑day but can offer higher long‑term growth potential. This tilt supports the strong growth profile of the portfolio, especially in periods when smaller companies outperform. On the flip side, downturns may feel sharper. If volatility ever feels too intense, easing back slightly on the dedicated small‑cap component could dial down risk without changing the overall philosophy.
Factors
Factor exposure shows strong tilts to size (85%) and momentum (70.3%), with limited data on other factors like value, quality, yield, and low volatility. Factors are characteristics such as company size or price strength that research has linked to returns over decades. A size tilt means greater exposure to smaller companies; a momentum tilt means more holdings that have performed well recently. This mix can do very well when trends persist and smaller firms lead, but it may see sharper reversals if market leadership suddenly changes. Since coverage for some factors is incomplete, the picture is partial. Periodic checks for unintended extreme tilts can help keep risk at a comfortable level.
Risk contribution
-
STATE STREET EQUITY 500 INDEX FUND CLASS K
Weight: 40.00% 39.9% -
FIDELITY SMALL CAP INDEX FUND INSTITUTIONAL PREMIUM CLASS
Weight: 25.00% 31.3% -
STATE STREET TARGET RETIREMENT 2050 FUND CLASS K
Weight: 35.00% 28.8%
Risk contribution measures how much each holding adds to overall ups and downs, which can differ from its weight. Here, the large equity index fund is 40% of the portfolio and contributes about 40% of the risk, a one‑to‑one relationship. The small‑cap fund, at 25% weight, contributes over 31% of risk, showing it is especially volatile. The target‑date fund, at 35%, contributes less risk than its weight thanks to its built‑in diversification. Overall, this is fairly balanced, but the small‑cap slice clearly punches above its weight. If risk ever feels too elevated, trimming that component or boosting the steadier target‑date fund can help smooth 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.
Efficient Frontier analysis looks at all possible combinations of the existing holdings to find the best risk‑return trade‑offs. “Efficient” here means getting the highest expected return for a given level of risk using only the current ingredients, not changing what those ingredients are. The analysis suggests a more efficient version of the portfolio could reach an expected return of about 15.44% at the same risk level, slightly above the current structure. The fully optimal mix within these funds would also sit at roughly 15.44% expected return with risk around 16.24%. Small tweaks in weights—especially around the small‑cap and target‑date funds—could potentially move closer to that efficient line.
Dividends
- FIDELITY SMALL CAP INDEX FUND INSTITUTIONAL PREMIUM CLASS 1.10%
- STATE STREET EQUITY 500 INDEX FUND CLASS K 1.50%
- Weighted yield (per year) 0.88%
The overall dividend yield is modest at around 0.88%, with underlying funds yielding between roughly 1.1% and 1.5%. Dividend yield is the annual cash payout as a percentage of the investment value, and it can be a helpful source of steady income. In this case, the focus is clearly on growth rather than income, which suits long‑term accumulation and reinvestment. Reinvesting dividends allows compounding to work harder over time. For someone wanting more cash flow—say, in retirement—shifting part of the portfolio into higher‑yielding, more income‑oriented holdings might make sense later on, while keeping a growth core to preserve long‑term purchasing power.
Ongoing product costs
- FIDELITY SMALL CAP INDEX FUND INSTITUTIONAL PREMIUM CLASS 0.02%
- STATE STREET TARGET RETIREMENT 2050 FUND CLASS K 0.09%
- STATE STREET EQUITY 500 INDEX FUND CLASS K 0.02%
- Weighted costs total (per year) 0.04%
The ongoing costs are impressively low, with expense ratios of 0.02–0.09% and a total estimated cost around 0.04%. These are well below typical mutual fund averages and even compare favorably to many index options. Lower costs mean more of the portfolio’s return stays in your pocket every year, and over decades that difference compounds significantly. This is a major strength and aligns with best practices followed by many institutional investors. The main ongoing task is simply to confirm periodically that no higher‑fee products sneak into the mix and that any future additions keep the overall cost base similarly lean and efficient.
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