A growth-focused portfolio with strong US and international index fund presence
Report created on Jul 31, 2025Risk profile
5/7
Diversification profile
4/5
Positions
-
FX Fidelity 500 Index Fund
FXAIX - US3159117502 75.00% -
FZ FIDELITY ZERO INTERNATIONAL INDEX FUND
FZILX - US31635T6091 25.00%
This portfolio is characterized by a significant allocation to the Fidelity 500 Index Fund, making up 75% of the portfolio, and a 25% allocation to the Fidelity Zero International Index Fund. Such a composition indicates a strong preference for stock investments, with a total stock allocation of 100%. The heavy weighting towards the Fidelity 500 Index Fund suggests a strong bias towards US equities, while the inclusion of the international index fund provides some degree of global exposure. This setup aligns with a growth-oriented investment strategy, leveraging the historical performance of the broader US market while also tapping into international markets for diversification.
Growth
Historically, this portfolio has achieved a Compound Annual Growth Rate (CAGR) of 13.53%, which is impressive. However, it's important to note the maximum drawdown of -33.61%, which indicates the potential loss from peak to trough during a specific period. This level of drawdown underscores the risk associated with a growth-focused portfolio. The days that make up 90% of returns being only 18.0 highlights the volatility and the importance of staying invested during turbulent times to capture the most significant gains.
Projection
Monte Carlo simulations, which use historical data to project future outcomes, show a wide range of potential returns for this portfolio, with a median (50th percentile) increase of 332.9%. While simulations can offer a glimpse into potential futures, it's crucial to remember that they are based on past data and cannot predict future market movements with certainty. The high percentage of simulations resulting in positive returns (971 out of 1,000) suggests resilience, but investors should remain cautious and not rely solely on these projections for decision-making.
Asset classes
- Stocks 100%
The portfolio's exclusive investment in stocks, with no allocation to cash or other asset classes, positions it for maximum growth potential but also exposes it to higher market volatility. This all-stock approach is typical for growth-oriented investors with a higher risk tolerance. However, diversifying across different asset classes can help manage risk, especially during market downturns.
Sectors
- Technology 27%
- Financials 17%
- Health Care 10%
- Consumer Discretionary 10%
- Industrials 9%
- Telecommunications 9%
- Consumer Staples 6%
- Energy 4%
- Basic Materials 3%
- Utilities 3%
- Real Estate 2%
The sector allocation shows a heavy emphasis on technology and financial services, which are sectors known for their growth potential but also for their volatility. The presence in healthcare, consumer cyclical, and industrials provides some balance, but the concentration in high-growth sectors underscores the portfolio's aggressive growth strategy. Investors should be aware of the cyclical nature of these sectors and their potential impact on portfolio performance.
Regions
- North America 77%
- Europe Developed 10%
- Japan 4%
- Asia Emerging 3%
- Asia Developed 3%
- Australasia 1%
- Africa/Middle East 1%
- Latin America 1%
Geographically, the portfolio is heavily weighted towards North America (77%), with modest exposure to developed Europe and emerging Asian markets. This distribution reflects a common approach for US-based investors seeking growth but may underrepresent opportunities in emerging markets. Increasing exposure to underrepresented regions could enhance diversification and potentially tap into higher growth rates in those economies.
Market capitalization
- Mega-cap 48%
- Large-cap 34%
- Mid-cap 17%
- Small-cap 1%
The focus on mega and big-cap stocks (82% combined) suggests a preference for established, large companies likely to offer stability and steady growth. However, the minimal exposure to small and micro-cap stocks means potentially missing out on higher growth opportunities these smaller companies can offer. Balancing market cap exposure could enhance growth potential while managing risk.
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 Efficient Frontier, which aims to maximize returns for a given level of risk, this portfolio may already be optimized for a growth-focused investor comfortable with higher volatility. However, periodic reassessment of the asset allocation can ensure it remains aligned with the investor's risk tolerance and market conditions, potentially enhancing risk-adjusted returns.
Dividends
- Fidelity 500 Index Fund 0.90%
- FIDELITY ZERO INTERNATIONAL INDEX FUND 2.50%
- Weighted yield (per year) 1.30%
The dividend yield of the portfolio stands at 1.30%, with the international fund offering a higher yield than the domestic one. While dividends contribute to total return, the portfolio's focus appears to be more on capital appreciation. Investors seeking income in addition to growth might consider allocating a portion of their portfolio to higher-yielding assets.
Ongoing product costs
- Fidelity 500 Index Fund 0.02%
- Weighted costs total (per year) 0.02%
With an extremely low total expense ratio (TER) of 0.02%, the portfolio is positioned to maximize returns by minimizing costs. Keeping costs low is a critical component of long-term investment success, as high fees can significantly erode returns over time. This portfolio exemplifies cost efficiency in asset management.
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