Growth-focused portfolio with strong US equity presence and low costs

Report created on Jul 19, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

5/5
Highly Diversified
Less diversification More diversification

Positions

This portfolio is predominantly invested in US equities, with a significant allocation to the Fidelity 500 Index Fund and the Fidelity Large Cap Growth Index Fund, comprising over 65% of the portfolio. Its structure leans heavily towards growth, with a smaller portion allocated to international equities, small and mid-cap indices, and bonds. The high diversification score reflects a broad exposure across sectors and geographies, though it's heavily skewed towards North America. The minimal bond allocation suggests a growth-oriented strategy with higher risk tolerance.

Growth Info

Historically, the portfolio has achieved a Compound Annual Growth Rate (CAGR) of 13.82%, with a maximum drawdown of -32.75%. These figures indicate a strong performance, albeit with significant volatility. The days contributing most to returns highlight the portfolio's susceptibility to short-term market movements. Comparing these metrics to benchmarks could provide further insight into relative performance, especially considering the growth profile and risk score.

Projection Info

Monte Carlo simulations forecast a wide range of outcomes, with the median projection suggesting a substantial increase in portfolio value. However, the broad spread between the 5th and 67th percentiles underscores the inherent uncertainty in these projections. While past performance is not indicative of future results, this analysis helps in understanding potential volatility and growth prospects, emphasizing the need for ongoing risk management.

Asset classes Info

  • Stocks
    95%
  • Bonds
    5%
  • Cash
    1%

The asset class distribution is heavily weighted towards stocks (95%), with a nominal bond presence (5%) and minimal cash holdings. This allocation underscores the portfolio's growth orientation but highlights a potential underweight in fixed income, which could offer stability during market downturns. Balancing growth with risk management might involve reconsidering the bond allocation, especially for a portfolio with a medium to high-risk score.

Sectors Info

  • Technology
    28%
  • Financials
    14%
  • Consumer Discretionary
    11%
  • Health Care
    10%
  • Industrials
    9%
  • Telecommunications
    9%
  • Consumer Staples
    5%
  • Energy
    3%
  • Real Estate
    2%
  • Basic Materials
    2%
  • Utilities
    2%

The sector allocation shows a strong emphasis on technology, financial services, and consumer cyclical sectors, which are typically associated with higher growth and volatility. This concentration aligns with the portfolio's growth objectives but may increase sensitivity to market cycles and sector-specific risks. Diversifying into underrepresented sectors could mitigate risk without significantly diluting growth potential.

Regions Info

  • North America
    82%
  • Europe Developed
    6%
  • No data
    5%
  • Japan
    2%
  • Asia Emerging
    2%
  • Asia Developed
    2%
  • Australasia
    1%
  • Africa/Middle East
    1%

With 82% of assets in North America, the portfolio's geographic exposure is heavily concentrated. While this may reflect confidence in the US market's growth prospects, it also exposes the portfolio to regional economic and political risks. Increasing allocations to developed and emerging markets outside North America could enhance diversification and potentially tap into growth opportunities in other regions.

Market capitalization Info

  • Mega-cap
    42%
  • Large-cap
    27%
  • Mid-cap
    17%
  • Small-cap
    5%
  • Micro-cap
    2%

The market capitalization breakdown reveals a preference for mega and big-cap stocks, which is consistent with the portfolio's growth and stability objectives. However, the relatively small allocation to small and micro-cap stocks could mean missed opportunities for higher growth, albeit with increased risk. Adjusting the balance between market caps could enhance diversification and potential returns.

Redundant positions Info

  • Fidelity US Sustainability Index Fund In
    FIDELITY LARGE CAP GROWTH INDEX FUND INSTITUTIONAL PREMIUM CLASS
    Fidelity 500 Index Fund
    High correlation

The high correlation among the Fidelity US Sustainability Index Fund, Fidelity Large Cap Growth Index Fund, and Fidelity 500 Index Fund suggests overlapping investments that may not contribute to diversification. Reducing exposure to highly correlated assets can help in achieving a more efficient risk-return profile, particularly by exploring options with lower correlation coefficients within and outside the current asset classes.

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.

Optimizing the portfolio involves addressing the high correlation among certain assets to improve diversification benefits. The Efficient Frontier analysis could help in identifying an allocation that offers the best possible risk-return trade-off, based on historical data. However, it's important to remember that this optimization assumes past performance trends will continue, which may not always be the case.

Dividends Info

  • Fidelity US Sustainability Index Fund In 1.20%
  • FIDELITY MID CAP INDEX FUND INSTITUTIONAL PREMIUM CLASS 2.10%
  • FIDELITY LARGE CAP GROWTH INDEX FUND INSTITUTIONAL PREMIUM CLASS 0.30%
  • FIDELITY SMALL CAP INDEX FUND INSTITUTIONAL PREMIUM CLASS 0.90%
  • FIDELITY TOTAL INTERNATIONAL INDEX FUND INSTITUTIONAL PREMIUM CLASS 2.40%
  • Fidelity 500 Index Fund 0.90%
  • FIDELITY U.S. BOND INDEX FUND INSTITUTIONAL PREMIUM CLASS 3.20%
  • Weighted yield (per year) 1.21%

The portfolio's dividend yield stands at 1.21%, which is modest but in line with its growth focus. While dividends contribute to total returns, the primary goal appears to be capital appreciation. Investors seeking income might consider increasing allocations to higher-yielding assets, though this could shift the portfolio's risk-return dynamics.

Ongoing product costs Info

  • Fidelity US Sustainability Index Fund In 0.11%
  • FIDELITY MID CAP INDEX FUND INSTITUTIONAL PREMIUM CLASS 0.02%
  • FIDELITY LARGE CAP GROWTH INDEX FUND INSTITUTIONAL PREMIUM CLASS 0.04%
  • FIDELITY SMALL CAP INDEX FUND INSTITUTIONAL PREMIUM CLASS 0.02%
  • FIDELITY TOTAL INTERNATIONAL INDEX FUND INSTITUTIONAL PREMIUM CLASS 0.06%
  • Fidelity 500 Index Fund 0.02%
  • FIDELITY U.S. BOND INDEX FUND INSTITUTIONAL PREMIUM CLASS 0.02%
  • Weighted costs total (per year) 0.03%

The overall expense ratio of 0.03% is impressively low, enhancing long-term return potential by minimizing cost drag. This efficiency is commendable, especially given the portfolio's broad diversification and growth orientation. Maintaining low costs while adjusting asset allocations will be crucial in preserving this advantage.

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