A one-trick pony galloping through the S&P 500 with blinders on
Report created on Jul 20, 2025Risk profile
5/7
Diversification profile
2/5
Positions
-
FX Fidelity 500 Index Fund
FXAIX - US3159117502 100.00%
Diving into this portfolio is like walking into a restaurant where the only item on the menu is steak, no sides, no dessert, just steak. Sure, the Fidelity 500 Index Fund is a solid choice, mirroring the performance of the S&P 500. But having 100% of your investment in a single index fund is like betting all your money on red at the roulette table. It's not just low diversity; it's no diversity. This strategy screams, "I heard index funds are good," and then put on earplugs to block out any further advice.
Growth
With a historical CAGR of 14.32%, this portfolio has been riding the long bull market like a pro surfer catching a wave. However, that -33.81% max drawdown is a stark reminder of what happens when the wave crashes. It's like enjoying a sunny day at the beach until a hurricane suddenly hits. Sure, the good days have outnumbered the bad, but when the storm comes, it's brutal. Remember, past performance is like looking in the rearview mirror while driving forward; it doesn't predict the next sharp turn.
Projection
The Monte Carlo simulation paints a picture of potential future success, with a median projection suggesting your portfolio could quintuple. But let's not forget, Monte Carlo simulations are like weather forecasts for your investments; they're educated guesses, not guarantees. Banking entirely on one fund's performance is akin to planning a picnic based solely on a sunny weather forecast a month in advance. Diversification is the umbrella you're forgetting to pack.
Asset classes
- Stocks 100%
Having 100% of your portfolio in stocks is like showing up to a potluck with just a giant bowl of salsa. Where are the chips? Where's the variety? Stocks, especially from a single index, are volatile. Without bonds, real estate, or other asset classes to mitigate risk, you're exposed to the full brunt of the market's mood swings. It's high time to consider adding some chips, maybe even some guacamole, to balance out that salsa.
Sectors
- Technology 31%
- Financials 14%
- Health Care 11%
- Consumer Discretionary 10%
- Telecommunications 9%
- Industrials 7%
- Consumer Staples 6%
- Energy 4%
- Utilities 3%
- Real Estate 2%
- Basic Materials 2%
Your sector allocation closely mirrors the S&P 500, with a hefty tech skew. Relying so heavily on technology (31%) is like having a diet consisting mostly of sugar; it's thrilling until the inevitable crash. Financial services and healthcare round out your top three, which adds a bit of protein to your diet, but the lack of sector diversification amplifies your risk. It's like putting all your eggs in a few baskets, then juggling them.
Regions
- North America 99%
This portfolio's almost exclusive focus on North America (99%) ignores the vast investment landscapes available globally. It's like refusing to eat any cuisine other than American. Sure, burgers and fries are great, but have you heard of sushi, pasta, or curry? Expanding into international markets could not only spice up your portfolio but also provide a cushion against domestic downturns.
Market capitalization
- Mega-cap 47%
- Large-cap 34%
- Mid-cap 18%
- Small-cap 1%
Your market capitalization breakdown shows a strong preference for mega (47%) and big (34%) cap stocks, which is like only shopping at big-box retailers and ignoring local boutiques. While large companies offer stability, overlooking mid and small caps means missing out on growth opportunities. It's akin to never trying artisanal cheese because you're too comfortable with processed slices.
Dividends
- Fidelity 500 Index Fund 0.90%
- Weighted yield (per year) 0.90%
A dividend yield of 0.90% is like finding a dollar on the sidewalk; it's a nice little bonus but won't significantly impact your financial journey. While it's a modest stream of passive income, relying solely on capital appreciation from the S&P 500 leaves potential income strategies on the table. It's time to diversify your income sources beyond just picking up loose change.
Ongoing product costs
- Fidelity 500 Index Fund 0.02%
- Weighted costs total (per year) 0.02%
The one commendable aspect of this portfolio is the rock-bottom total expense ratio (TER) of 0.02%. It's like finding a fee-free ATM in a world where everyone else is paying $3 per transaction. While it's great that you're not bleeding fees, cost savings alone won't optimize your portfolio's performance. It's akin to being penny-wise but pound-foolish.
What next?
Ready to invest in this portfolio?
Select a broker that fits your needs and watch for low fees to maximize your returns.
Create your own report?
Join our community!
The information provided on this platform is for informational purposes only and should not be considered as financial or investment advice. Insightfolio does not provide investment advice, personalized recommendations, or guidance regarding the purchase, holding, or sale of financial assets. The tools and content are intended for educational purposes only and are not tailored to individual circumstances, financial needs, or objectives.
Insightfolio assumes no liability for the accuracy, completeness, or reliability of the information presented. Users are solely responsible for verifying the information and making independent decisions based on their own research and careful consideration. Use of the platform should not replace consultation with qualified financial professionals.
Investments involve risks. Users should be aware that the value of investments may fluctuate and that past performance is not an indicator of future results. Investment decisions should be based on personal financial goals, risk tolerance, and independent evaluation of relevant information.
Insightfolio does not endorse or guarantee the suitability of any particular financial product, security, or strategy. Any projections, forecasts, or hypothetical scenarios presented on the platform are for illustrative purposes only and are not guarantees of future outcomes.
By accessing the services, information, or content offered by Insightfolio, users acknowledge and agree to these terms of the disclaimer. If you do not agree to these terms, please do not use our platform.
Instrument logos provided by Elbstream.
Help us improve Insightfolio
Your feedback makes a difference! Share your thoughts in our quick survey. Take the survey