This portfolio has only about 1.4 years of historical data, based on the youngest asset in the portfolio. Some metrics, projections, and AI insights may be less reliable and should be interpreted with caution.
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A concentrated portfolio with a growth focus and notable exposure to Japanese equities

Report created on Apr 12, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification
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Positions

The portfolio is heavily weighted towards common stocks, with a significant 37.11% allocation to Nintendo Co ADR, reflecting a strong concentration in a single equity. Funds and ETFs make up the remainder, with a noticeable allocation in Fidelity’s large-cap and bond products. Compared to a benchmark, this portfolio is less diversified, showing a preference for specific stocks and funds. This composition suggests a focus on growth, but it may expose the investor to higher volatility due to the concentration in a few key assets. To enhance diversification, consider reallocating some of the single-stock exposure into a broader range of ETFs or funds.

Growth Info

Historically, the portfolio has exhibited robust performance, with a Compound Annual Growth Rate (CAGR) of 24.55%. This high growth rate indicates strong past returns, possibly driven by the concentrated positions in high-performing stocks like Nintendo. However, the portfolio also experienced a maximum drawdown of -16.02%, highlighting the potential for significant losses during market downturns. Comparing this to broader market benchmarks, the portfolio likely outperformed during bull markets but may have been more volatile. It's essential to remember that past performance does not guarantee future results, so maintaining a balanced approach is crucial.

Projection Info

The Monte Carlo simulation, which uses historical data to project future outcomes, indicates a wide range of potential returns. With 1,000 simulations, the median projected return is 723.8%, showing optimistic growth potential. However, the 5th percentile outcome is 104.6%, suggesting that there is still a risk of lower returns. While 991 simulations show positive returns, it's important to understand that these projections are based on historical data and assumptions, which may not hold true in the future. Regularly reviewing and adjusting the portfolio can help manage risks and align with changing market conditions.

Asset classes Info

  • Stocks
    89%
  • Bonds
    10%
  • Cash
    1%

The portfolio's asset allocation is predominantly in stocks (89%), with bonds making up 10% and cash a mere 1%. This heavy stock allocation aligns with a growth-focused strategy but may lead to higher volatility. Compared to typical benchmarks, the portfolio is under-diversified in bonds and cash, which can provide stability during market downturns. To mitigate risk, consider increasing bond exposure or adding other asset classes like real estate or commodities. A more balanced approach could enhance diversification and reduce the impact of market fluctuations on the overall portfolio.

Sectors Info

  • Telecommunications
    41%
  • Technology
    17%
  • Financials
    13%
  • Health Care
    4%
  • Industrials
    3%
  • Consumer Discretionary
    3%
  • Consumer Staples
    2%
  • Energy
    2%
  • Consumer Discretionary
    1%
  • Real Estate
    1%
  • Basic Materials
    1%
  • Utilities
    1%

Sector allocation is heavily skewed towards Communication Services (41%) and Technology (17%), with lesser exposure to Financial Services and other sectors. This concentration suggests a bet on growth industries but may result in higher volatility, especially if these sectors face downturns. Compared to common benchmarks, the portfolio is less diversified across sectors. To mitigate sector-specific risks, consider reallocating some investments into underrepresented sectors like Consumer Defensive or Utilities, which can provide stability and balance to the portfolio during economic fluctuations.

Regions Info

  • North America
    39%
  • Japan
    38%
  • Europe Developed
    10%
  • Asia Developed
    1%
  • Asia Emerging
    1%

Geographically, the portfolio is almost evenly split between North America (39%) and Japan (38%), with limited exposure to other regions. This allocation offers some diversification but is heavily reliant on two markets. Compared to global benchmarks, the portfolio lacks exposure to emerging markets and other developed regions, which could offer growth opportunities and risk diversification. To enhance geographic diversification, consider increasing allocations to Europe, Asia, and emerging markets, which may provide additional growth potential and reduce dependency on the U.S. and Japanese markets.

Market capitalization Info

  • Large-cap
    60%
  • Mega-cap
    20%
  • Mid-cap
    8%
  • Small-cap
    1%

The portfolio's market capitalization is concentrated in Big (60%) and Mega (20%) cap stocks, with minimal exposure to Medium (8%) and Small (1%) caps. This allocation favors established companies, which can provide stability and steady growth. However, it may limit opportunities for higher returns often associated with smaller companies. Compared to benchmarks, the portfolio might benefit from increased exposure to mid and small-cap stocks, which can enhance diversification and potentially boost returns. Balancing market cap exposure can help capture growth from emerging companies while maintaining stability.

Redundant positions Info

  • Fidelity Enhanced Large Cap Core ETF
    FIDELITY ZERO LARGE CAP INDEX FUND
    High correlation

The portfolio exhibits high correlation among certain assets, notably between the Fidelity Enhanced Large Cap Core ETF and the FIDELITY ZERO LARGE CAP INDEX FUND. High correlation means these assets tend to move together, reducing diversification benefits. In market downturns, this can lead to amplified losses. To improve diversification, consider replacing one of the highly correlated assets with another fund or ETF that offers exposure to different sectors or regions. This adjustment can help spread risk and enhance the portfolio's resilience against market 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.

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Portfolio optimization using the Efficient Frontier suggests that the current asset allocation could be improved for a better risk-return balance. The Efficient Frontier is a concept that identifies the optimal asset mix for the highest expected return at a given risk level. The current portfolio could achieve an expected return of 5.90% with a risk level of 0.92% by optimizing the allocation. This involves adjusting the weights of existing assets rather than introducing new ones. Aligning the portfolio with the Efficient Frontier can enhance returns without increasing risk.

Dividends Info

  • Barclays PLC ADR 3.00%
  • Fidelity® Emerging Markets Multifactor ETF 2.50%
  • Fidelity® International Multifactor ETF 1.60%
  • Fidelity Enhanced Large Cap Core ETF 0.80%
  • Fidelity Enhanced Small Cap ETF 1.00%
  • Fidelity Investment Grade Bond ETF 2.80%
  • Fidelity® Low Duration Bond Factor ETF 3.70%
  • Fidelity Enhanced Mid Cap ETF 0.90%
  • FIDELITY ZERO LARGE CAP INDEX FUND 1.20%
  • VanEck Semiconductor ETF 0.50%
  • Fidelity® Government Money Market Fund 4.20%
  • Weighted yield (per year) 1.02%

The portfolio's overall dividend yield is 1.02%, with notable contributions from Barclays PLC ADR (3.00%) and Fidelity’s bond ETFs. Dividends can provide a steady income stream, which is beneficial for reinvestment or income-focused strategies. However, the yield is relatively low, reflecting the portfolio's growth orientation. To enhance income, consider increasing allocations to high-dividend stocks or funds. This approach can provide a cushion during market downturns and contribute to total returns, especially for investors seeking a balance between growth and income.

Ongoing product costs Info

  • Fidelity® Emerging Markets Multifactor ETF 0.25%
  • Fidelity® International Multifactor ETF 0.18%
  • Fidelity Enhanced Large Cap Core ETF 0.18%
  • Fidelity Enhanced Small Cap ETF 0.28%
  • Fidelity Investment Grade Bond ETF 0.36%
  • Fidelity® Low Duration Bond Factor ETF 0.15%
  • Fidelity Enhanced Mid Cap ETF 0.23%
  • VanEck Semiconductor ETF 0.35%
  • Weighted costs total (per year) 0.08%

The portfolio's Total Expense Ratio (TER) is impressively low at 0.08%, indicating cost efficiency. Low costs can significantly enhance long-term returns by minimizing the drag on performance. Compared to industry averages, this TER is favorable, allowing more of the portfolio's returns to be retained. However, some individual ETFs have higher expense ratios, which could be reduced by selecting lower-cost alternatives. Regularly reviewing and optimizing costs can help maintain the portfolio's performance edge and ensure that expenses do not erode potential gains over time.

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