Balanced portfolio with broad diversification and a focus on global equities and cost efficiency

Report created on Jul 31, 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 showcases a robust mix of asset classes, with a heavy emphasis on stocks (98%) and minimal allocations to bonds (1%) and real estate (1%). The largest portion of the portfolio is held in a large-cap index fund, indicating a preference for stable, well-established companies. However, the inclusion of small-cap, international, and emerging market funds suggests a strategic tilt towards growth and diversification. This composition mirrors a balanced approach, aiming to harness growth while mitigating risk through diversification across market capitalizations and geographies.

Growth Info

Historically, the portfolio has demonstrated a Compound Annual Growth Rate (CAGR) of 11.35%, with a maximum drawdown of -25.57%. This performance indicates a relatively high level of resilience during market downturns, with a strong recovery potential. The days contributing to 90% of returns being concentrated in a small number of trading sessions highlight the importance of staying invested over the long term, as missing these key days can significantly impact overall returns.

Projection Info

Monte Carlo simulations, which utilize historical data to forecast a range of possible future outcomes, suggest a wide variance in potential portfolio performance. With the 50th percentile projection at a 22.7% increase and the 67th at a 125.8% increase, it underscores the inherent uncertainties in investing. While over half of the simulations predict positive returns, the broad spread of outcomes serves as a reminder of the risk involved and the need for a well-considered risk management strategy.

Asset classes Info

  • Stocks
    98%
  • Bonds
    1%
  • Real Estate
    1%
  • Cash
    1%

The portfolio's asset allocation leans heavily towards equities, with a minimal presence in bonds and real estate. This aggressive stance is reflective of a higher risk tolerance, aiming for capital appreciation over income. While the equity-heavy approach aligns with long-term growth objectives, the minimal bond allocation may limit the portfolio's ability to cushion against market volatility. Diversifying further into fixed-income securities could provide more balance, potentially enhancing the portfolio's risk-adjusted returns.

Sectors Info

  • Technology
    20%
  • Financials
    18%
  • Consumer Staples
    13%
  • Industrials
    9%
  • Health Care
    8%
  • Consumer Discretionary
    8%
  • Telecommunications
    6%
  • Real Estate
    5%
  • Energy
    3%
  • Basic Materials
    3%
  • Utilities
    3%
  • Consumer Discretionary
    2%

Sector allocation is diverse, with significant investments in technology, financial services, and consumer defensive sectors. This mix balances growth-oriented sectors with those traditionally considered more stable. The heavy weighting in technology and financial services sectors indicates a tilt towards industries that can offer robust growth but may also exhibit higher volatility. On the other hand, the allocation to consumer defensive stocks suggests a strategic counterbalance, aiming to provide steadiness during economic downturns.

Regions Info

  • North America
    78%
  • Europe Developed
    8%
  • Asia Emerging
    4%
  • Asia Developed
    3%
  • Japan
    3%
  • Africa/Middle East
    1%
  • Australasia
    1%
  • Latin America
    1%

Geographic distribution is predominantly focused on North America (78%), with smaller exposures to developed Europe, emerging Asia, and other regions. This concentration on domestic markets may offer familiarity and stability but could also limit exposure to potential growth opportunities in international markets. Considering the global nature of today's economy, increasing allocations to underrepresented regions could enhance diversification benefits and potentially tap into faster-growing economies.

Market capitalization Info

  • Mega-cap
    40%
  • Large-cap
    23%
  • Small-cap
    14%
  • Mid-cap
    13%
  • Micro-cap
    9%

The portfolio's market capitalization exposure is well-distributed among mega, big, small, and medium-sized companies. This diversified approach helps balance the stability offered by large companies with the growth potential of smaller firms. However, the significant tilt towards mega and big caps suggests a conservative preference, potentially at the expense of higher growth opportunities available within smaller cap segments. A slight adjustment to increase exposure to small and micro-cap stocks could introduce more growth potential, albeit with increased volatility.

Redundant positions Info

  • BNY Mellon Core Bond ETF
    FIDELITY U.S. BOND INDEX FUND INSTITUTIONAL PREMIUM CLASS
    High correlation
  • Schwab U.S. Large-Cap Growth ETF
    BNY Mellon US Large Cap Core Equity ETF
    FIDELITY LARGE CAP GROWTH INDEX FUND INSTITUTIONAL PREMIUM CLASS
    Fidelity 500 Index Fund
    High correlation
  • Fidelity Small Cap Value Index Fund
    SPDR® Portfolio S&P 600 Small Cap ETF
    SPDR Russell Small Cap Completeness
    FIDELITY MID CAP INDEX FUND INSTITUTIONAL PREMIUM CLASS
    Schwab U.S. Small-Cap ETF
    FIDELITY ZERO EXTENDED MARKET INDEX FUND
    Vanguard Small-Cap Value Index Fund ETF Shares
    High correlation
  • SPDR® Portfolio Emerging Markets ETF
    FIDELITY EMERGING MARKETS INDEX FUND INSTITUTIONAL PREMIUM CLASS
    High correlation
  • FIDELITY INTERNATIONAL INDEX FUND INSTITUTIONAL PREMIUM CLASS
    SPDR S&P World ex US
    High correlation

The analysis identifies several groups of highly correlated assets, particularly among large-cap growth funds and ETFs, as well as small-cap value funds. This redundancy limits the diversification benefits and exposes the portfolio to concentrated risks in specific market segments. Reducing overlap by consolidating similar investments could streamline the portfolio, enhancing its efficiency without sacrificing the diversification needed to mitigate risk effectively.

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's risk vs. return profile could involve reducing asset overlap to minimize redundancy and enhance diversification benefits. This process, guided by the Efficient Frontier concept, aims to achieve the most favorable risk-return trade-off by adjusting asset allocations. However, it's important to recognize that optimization based on historical data does not guarantee future performance, and individual risk tolerance should always guide allocation decisions.

Dividends Info

  • BNY Mellon Core Bond ETF 4.20%
  • BNY Mellon US Large Cap Core Equity ETF 1.10%
  • Capital One Financial Corporation 1.10%
  • Fidelity Small Cap Value Index Fund 1.70%
  • FIDELITY EMERGING MARKETS INDEX FUND INSTITUTIONAL PREMIUM CLASS 2.30%
  • FIDELITY MID CAP INDEX FUND INSTITUTIONAL PREMIUM CLASS 1.10%
  • FIDELITY LARGE CAP GROWTH INDEX FUND INSTITUTIONAL PREMIUM CLASS 0.30%
  • FIDELITY 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%
  • FIDELITY ZERO EXTENDED MARKET INDEX FUND 1.20%
  • Schwab U.S. Small-Cap ETF 1.50%
  • Schwab U.S. Large-Cap Growth ETF 0.40%
  • Schwab U.S. TIPS ETF 3.00%
  • SPDR S&P World ex US 2.80%
  • SPDR® Portfolio Emerging Markets ETF 2.60%
  • SPDR Russell Small Cap Completeness 1.40%
  • SPDR® Portfolio S&P 600 Small Cap ETF 1.90%
  • iShares Core U.S. REIT ETF 3.00%
  • Vanguard Small-Cap Value Index Fund ETF Shares 2.10%
  • Vanguard Global ex-U.S. Real Estate Index Fund ETF Shares 4.50%
  • Walmart Inc 0.90%
  • Weighted yield (per year) 1.40%

The portfolio's dividend yield stands at 1.40%, reflecting a moderate income component alongside its growth orientation. While not the primary focus, dividends contribute to total returns and offer a passive income stream, which can be particularly beneficial during market downturns. Given the portfolio's growth focus, the current yield is reasonable, but there may be room to optimize income generation without significantly altering the risk profile, perhaps by selectively increasing allocations to higher-yielding assets.

Ongoing product costs Info

  • Fidelity Small Cap Value Index Fund 0.05%
  • FIDELITY EMERGING MARKETS INDEX FUND INSTITUTIONAL PREMIUM CLASS 0.08%
  • FIDELITY MID CAP INDEX FUND INSTITUTIONAL PREMIUM CLASS 0.02%
  • FIDELITY LARGE CAP GROWTH INDEX FUND INSTITUTIONAL PREMIUM CLASS 0.04%
  • FIDELITY INTERNATIONAL INDEX FUND INSTITUTIONAL PREMIUM CLASS 0.04%
  • Fidelity 500 Index Fund 0.02%
  • FIDELITY U.S. BOND INDEX FUND INSTITUTIONAL PREMIUM CLASS 0.02%
  • Schwab U.S. Small-Cap ETF 0.04%
  • Schwab U.S. Large-Cap Growth ETF 0.04%
  • Schwab U.S. TIPS ETF 0.03%
  • SPDR S&P World ex US 0.03%
  • SPDR® Portfolio Emerging Markets ETF 0.07%
  • SPDR Russell Small Cap Completeness 0.03%
  • SPDR® Portfolio S&P 600 Small Cap ETF 0.03%
  • iShares Core U.S. REIT ETF 0.08%
  • Vanguard Small-Cap Value Index Fund ETF Shares 0.07%
  • Vanguard Global ex-U.S. Real Estate Index Fund ETF Shares 0.12%
  • Weighted costs total (per year) 0.03%

With a Total Expense Ratio (TER) averaging around 0.03%, the portfolio demonstrates a cost-efficient structure. This low-cost approach is commendable, as it preserves returns by minimizing the drag on performance due to fees. Maintaining this focus on cost efficiency is crucial, especially over the long term, where even small differences in fees can have a significant impact on net returns.

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