A well-diversified balanced portfolio with a strong focus on US and international equities

Report created on Jul 19, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

This portfolio is heavily weighted towards equities, with a 75% allocation in the Fidelity 500 Index Fund and a 25% allocation in the Fidelity Total International Index Fund Institutional Premium Class. This structure suggests a balanced approach, leaning towards growth through a broad exposure to both US and international markets. The portfolio's diversification is further underscored by its spread across 11 sectors, with technology, financial services, and healthcare being the most prominent.

Growth Info

Historically, the portfolio has demonstrated robust performance with a Compound Annual Growth Rate (CAGR) of 13.96%. While the maximum drawdown of -33.70% indicates periods of significant volatility, the overall return trajectory is impressive. The days contributing to 90% of returns being concentrated in just 29 days highlights the importance of remaining invested through market cycles to capture gains.

Projection Info

A Monte Carlo simulation, using 1,000 iterations, suggests a wide range of potential outcomes but leans towards positive growth. The median projection shows a 352.1% increase, with 988 simulations ending in positive returns. This analysis, while not a guarantee of future results, supports the potential for continued growth, assuming similar market conditions persist.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%

The portfolio's asset allocation is almost entirely in stocks (99%), with a minimal cash holding (1%). This high equity exposure is consistent with its balanced risk classification but leans towards a growth-oriented strategy. The lack of significant allocations to other asset classes like bonds or real estate limits diversification across asset types, potentially increasing volatility but also offering higher growth potential.

Sectors Info

  • Technology
    27%
  • Financials
    16%
  • Health Care
    10%
  • Consumer Discretionary
    10%
  • Industrials
    9%
  • Telecommunications
    9%
  • Consumer Staples
    6%
  • Energy
    4%
  • Basic Materials
    3%
  • Utilities
    3%
  • Real Estate
    2%

Sectoral allocation is concentrated in technology, financial services, and healthcare, making up over half of the portfolio. This concentration in sectors that can exhibit high growth but also higher volatility might influence the portfolio's performance, especially in tech-heavy market environments. Diversifying across more sectors could reduce risk without significantly compromising potential returns.

Regions Info

  • North America
    77%
  • Europe Developed
    10%
  • Japan
    4%
  • Asia Emerging
    4%
  • Asia Developed
    3%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%

The geographic allocation shows a strong bias towards North America (77%), with modest exposure to developed Europe (10%) and emerging and developed Asia. This heavy weighting towards the US market is typical for investors prioritizing growth through established markets, though increasing exposure to emerging markets could offer additional growth opportunities and further diversification benefits.

Market capitalization Info

  • Mega-cap
    46%
  • Large-cap
    33%
  • Mid-cap
    18%
  • Small-cap
    1%

With 46% in mega-cap, 33% in large-cap, and 18% in mid-cap stocks, the portfolio is positioned to capture the growth of established companies while maintaining some exposure to the potential high growth of mid-sized firms. The minimal allocation to small and micro-caps suggests a cautious approach to risk, as these segments can offer high returns but come with increased 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.

Based on the Efficient Frontier concept, this portfolio appears well-optimized for its current risk-return profile. However, there's always room for improvement, especially in terms of diversification across asset classes and geographic regions. Adjusting allocations to include more non-correlated assets could potentially enhance returns without significantly increasing risk.

Dividends Info

  • FIDELITY TOTAL INTERNATIONAL INDEX FUND INSTITUTIONAL PREMIUM CLASS 2.40%
  • Fidelity 500 Index Fund 0.90%
  • Weighted yield (per year) 1.28%

The portfolio's overall dividend yield is 1.28%, with the international fund contributing a higher yield than its US counterpart. While not the focus of this growth-oriented strategy, dividends can provide a steady income stream and contribute to total return, particularly in volatile or down markets. Reinvesting these dividends can further compound growth over time.

Ongoing product costs Info

  • FIDELITY TOTAL INTERNATIONAL INDEX FUND INSTITUTIONAL PREMIUM CLASS 0.06%
  • Fidelity 500 Index Fund 0.02%
  • Weighted costs total (per year) 0.03%

The portfolio benefits from exceptionally low costs, with a total expense ratio (TER) of just 0.03%. This efficiency is crucial for long-term growth, as lower costs directly translate to higher net returns for investors. The focus on low-cost index funds is a prudent strategy, aligning well with best practices for maximizing investment performance.

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