A growth-focused portfolio with heavy US and tech sector exposure and low costs

Report created on Jul 18, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

The portfolio is heavily weighted towards US equities, with a significant focus on technology and large-cap stocks. The allocation across four Fidelity funds shows a clear preference for growth, particularly within the domestic market. This structure is designed to capitalize on the growth potential of large-cap companies, especially in the tech sector, which has historically driven market performance. The concentration in growth-oriented funds, however, may introduce heightened volatility compared to more diversified or value-focused strategies.

Growth Info

With a Compound Annual Growth Rate (CAGR) of 14.38% and a maximum drawdown of -33.70%, the portfolio has demonstrated strong growth with significant volatility. The days contributing most to returns highlight the portfolio's susceptibility to market swings, a common trait for growth-focused investments. Comparing these figures to broader market benchmarks would be essential to understand the portfolio's performance in context, especially considering the high growth rates of tech-centric investments in recent years.

Projection Info

Monte Carlo simulations suggest a wide range of outcomes, with a median projected annualized return of 15.11%. This method, which uses historical data to forecast future performance, indicates a strong likelihood of positive returns. However, it's crucial to remember that such simulations are based on past trends, and future market conditions could diverge significantly, especially in sectors as volatile as technology and growth stocks.

Asset classes Info

  • Stocks
    100%

The portfolio is entirely allocated to stocks, with no diversification into other asset classes like bonds or real estate. This allocation supports the portfolio's growth objectives but increases its risk profile, making it more susceptible to market downturns. Including different asset classes could provide a buffer against volatility and reduce overall portfolio risk.

Sectors Info

  • Technology
    31%
  • Financials
    15%
  • Consumer Discretionary
    11%
  • Health Care
    10%
  • Telecommunications
    9%
  • Industrials
    9%
  • Consumer Staples
    5%
  • Energy
    3%
  • Basic Materials
    2%
  • Utilities
    2%
  • Real Estate
    2%

The sectoral allocation leans heavily towards technology, followed by financial services and consumer cyclicals. This concentration in tech exposes the portfolio to sector-specific risks, such as regulatory changes or shifts in consumer behavior. Diversifying into other sectors or increasing allocations to defensive sectors like healthcare or utilities could mitigate some of this risk.

Regions Info

  • North America
    83%
  • Europe Developed
    8%
  • Japan
    3%
  • Asia Emerging
    2%
  • Asia Developed
    2%
  • Australasia
    1%
  • Africa/Middle East
    1%

With 83% of assets in North America, the portfolio's geographic exposure is heavily skewed towards the US market. While this focus has likely benefited from the strong performance of US equities, particularly tech, it also limits exposure to potential growth in other regions. Increasing allocations to developed markets in Europe or emerging markets could enhance diversification and potentially tap into new growth areas.

Market capitalization Info

  • Mega-cap
    48%
  • Large-cap
    30%
  • Mid-cap
    16%
  • Small-cap
    3%
  • Micro-cap
    1%

The emphasis on mega and big-cap stocks aligns with the portfolio's growth and stability goals. These companies often have more established business models and global reach, offering a balance of growth potential and resilience. However, incorporating medium or small-cap stocks could introduce new growth opportunities and further diversification benefits.

Redundant positions Info

  • FIDELITY LARGE CAP GROWTH INDEX FUND INSTITUTIONAL PREMIUM CLASS
    FIDELITY ZERO LARGE CAP INDEX FUND
    FIDELITY ZERO TOTAL MARKET INDEX FUND
    High correlation

The high correlation among the Fidelity funds, especially those focused on large-cap and total market indices, suggests redundancy that does not contribute to diversification. Reducing overlap by reallocating assets from highly correlated funds to those with lower correlations or different focus areas could enhance portfolio efficiency and reduce risk without sacrificing potential returns.

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.

The portfolio's current structure suggests room for optimization, particularly by addressing the overlap among the Fidelity funds. By reallocating assets to reduce redundancy and enhance diversification across sectors, geographies, and market caps, the portfolio could achieve a more efficient risk-return profile. This adjustment would align with the principles of the Efficient Frontier, aiming for the highest possible returns for a given level of risk.

Dividends Info

  • FIDELITY ZERO LARGE CAP INDEX FUND 1.00%
  • FIDELITY LARGE CAP GROWTH INDEX FUND INSTITUTIONAL PREMIUM CLASS 0.30%
  • FIDELITY ZERO INTERNATIONAL INDEX FUND 2.50%
  • FIDELITY ZERO TOTAL MARKET INDEX FUND 1.10%
  • Weighted yield (per year) 1.19%

The portfolio's overall dividend yield of 1.19% reflects its growth orientation, as growth stocks typically reinvest earnings rather than pay out dividends. While the yield contributes to total returns, investors seeking income might consider a higher allocation to assets with higher dividend yields or diversifying into dividend-focused funds.

Ongoing product costs Info

  • FIDELITY LARGE CAP GROWTH INDEX FUND INSTITUTIONAL PREMIUM CLASS 0.04%
  • Weighted costs total (per year) 0.01%

With exceptionally low costs, the portfolio is well-positioned to maximize returns over the long term. Low expense ratios are crucial for growth strategies, where compounding plays a significant role in wealth accumulation. Maintaining focus on cost efficiency will continue to be beneficial, especially in a low-yield environment.

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