Growth-oriented portfolio with strong focus on US stocks and momentum strategies

Report created on Aug 19, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

The portfolio is heavily weighted towards the US market, with a significant focus on technology and financial services sectors. It comprises exclusively of stocks, with 50% allocated to a broad market index fund, signaling a strong preference for diversified exposure to the US market. The inclusion of specialized ETFs and funds targeting growth, momentum, and quality factors indicates a strategy aimed at capitalizing on market trends and high-quality stocks. This composition suggests a growth-oriented approach, albeit with moderate diversification across sectors and geographies.

Growth Info

With a historical Compound Annual Growth Rate (CAGR) of 16.61% and a maximum drawdown of -33.27%, the portfolio has demonstrated robust growth potential but also significant volatility. The days contributing most to returns highlight the impact of short-term gains, underscoring the momentum strategy's influence. However, the high max drawdown points to periods of substantial value loss, which investors should be prepared for. Comparing these metrics to benchmarks could help assess relative performance, especially during market downturns.

Projection Info

Monte Carlo simulations, which use historical data to forecast a range of potential outcomes, suggest a wide variance in future portfolio performance, with a median increase of 851.1%. While these projections offer a glimpse into potential growth, they are inherently uncertain and should be interpreted with caution. The high percentage of simulations yielding positive returns is encouraging, yet the reliance on past trends to predict future performance is a limitation, as market conditions can change unpredictably.

Asset classes Info

  • Stocks
    100%

The portfolio's exclusive investment in stocks, without any allocation to bonds, cash, or alternative assets, positions it for higher growth potential but also higher volatility. This all-equity strategy aligns with a growth-focused investor willing to accept significant market risk. Diversifying across different asset classes could reduce volatility and provide a buffer during stock market downturns, potentially smoothing out returns over time.

Sectors Info

  • Technology
    30%
  • Financials
    18%
  • Telecommunications
    10%
  • Industrials
    10%
  • Consumer Discretionary
    8%
  • Health Care
    8%
  • Consumer Staples
    5%
  • Consumer Discretionary
    3%
  • Energy
    3%
  • Basic Materials
    2%
  • Utilities
    2%
  • Real Estate
    2%

The sector allocation reveals a heavy tilt towards technology and financial services, making the portfolio susceptible to sector-specific risks. While these sectors can offer substantial growth, they can also experience sharp declines, as seen in past market corrections. Balancing the sector exposure by incorporating underrepresented sectors like utilities or real estate could mitigate some of this risk and enhance portfolio stability.

Regions Info

  • North America
    82%
  • Europe Developed
    10%
  • Japan
    3%
  • Asia Developed
    2%
  • Australasia
    1%
  • Asia Emerging
    1%
  • Africa/Middle East
    1%

With 82% of assets in North America, the portfolio's geographic exposure is heavily skewed towards the US market. While the US market is a significant driver of global investment returns, this concentration increases vulnerability to region-specific economic shifts. Increasing exposure to developed and emerging markets outside the US could enhance diversification and potentially tap into growth opportunities in other regions.

Market capitalization Info

  • Mega-cap
    48%
  • Large-cap
    31%
  • Mid-cap
    15%
  • Small-cap
    3%
  • Micro-cap
    1%

The focus on mega and big-cap stocks underscores the portfolio's preference for established, large companies, likely due to their perceived stability and growth potential. However, this concentration may limit exposure to the higher growth potential of mid and small-cap stocks. Diversifying across different market capitalizations could introduce more growth opportunities and reduce the impact of market fluctuations on large-cap stocks.

Redundant positions Info

  • iShares MSCI USA Quality GARP ETF
    FIDELITY ZERO TOTAL MARKET INDEX FUND
    FIDELITY LARGE CAP GROWTH INDEX FUND INSTITUTIONAL PREMIUM CLASS
    High correlation

The high correlation among several assets, particularly the broad market index fund, large-cap growth fund, and the quality GARP ETF, suggests redundancy in the portfolio's construction. This overlap reduces the diversification benefits and exposes the portfolio to amplified risks in market downturns. Identifying and reducing overlapping exposures can enhance diversification and potentially improve the portfolio's risk-adjusted 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 configuration, while growth-oriented, could benefit from optimization to improve its risk-return profile. The Efficient Frontier analysis suggests that adjusting the allocation among the existing assets could enhance returns for the same level of risk. Prioritizing this rebalancing, especially by addressing the high correlation among holdings, could further optimize performance.

Dividends Info

  • FIDELITY LARGE CAP GROWTH INDEX FUND INSTITUTIONAL PREMIUM CLASS 0.30%
  • FIDELITY ZERO INTERNATIONAL INDEX FUND 2.40%
  • FIDELITY ZERO TOTAL MARKET INDEX FUND 1.10%
  • Invesco S&P International Developed Momentum ETF 1.90%
  • Invesco S&P 500® Momentum ETF 0.60%
  • iShares MSCI USA Quality GARP ETF 0.40%
  • Weighted yield (per year) 1.11%

The portfolio's dividend yield stands at 1.11%, contributed by various holdings with yields ranging from 0.30% to 2.40%. While dividends are not the primary focus of this growth-oriented strategy, they provide a secondary source of income and can offer some cushion during market volatility. Rebalancing to include assets with higher dividend yields could provide a more consistent income stream without significantly compromising growth potential.

Ongoing product costs Info

  • FIDELITY LARGE CAP GROWTH INDEX FUND INSTITUTIONAL PREMIUM CLASS 0.04%
  • Invesco S&P International Developed Momentum ETF 0.25%
  • Invesco S&P 500® Momentum ETF 0.13%
  • Weighted costs total (per year) 0.04%

The total expense ratio (TER) of the portfolio is exceptionally low, enhancing its attractiveness by minimizing the drag on returns due to fees. This cost efficiency is crucial for long-term growth, as even small differences in fees can compound into significant impacts on net returns over time. Maintaining a focus on low-cost investments will continue to support better performance relative to more expensive alternatives.

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