A focused growth-oriented portfolio with a strong tilt towards technology and large-cap stocks
Report created on Aug 8, 2025Risk profile
5/7
Diversification profile
2/5
Positions
-
FZ FIDELITY ZERO TOTAL MARKET INDEX FUND
FZROX - US31635T7081 100.00%
This portfolio is entirely allocated to the Fidelity Zero Total Market Index Fund, offering broad exposure to the U.S. stock market. Its 100% stock composition underscores a growth-focused strategy but reveals a low level of diversification across asset classes. The sector allocation is heavily weighted towards technology, financial services, and consumer cyclical sectors, reflecting a bias towards industries that can exhibit high growth but also higher volatility. Such a concentrated approach in a single fund and asset class limits diversification benefits that could mitigate risk.
Growth
The portfolio has demonstrated a strong historical performance with a Compound Annual Growth Rate (CAGR) of 14.60%. This high return rate is reflective of the recent bull market conditions favoring technology and large-cap stocks. However, the maximum drawdown of -34.96% indicates significant volatility and potential risk during market downturns. It's important to note that past performance, especially over short periods, is not always indicative of future results. Investors should consider long-term trends and market cycles.
Projection
Monte Carlo simulations, which use historical data to project future outcomes, suggest a wide range of potential portfolio values, indicating both the opportunity for substantial growth and the risk of significant loss. While a majority of simulations show positive returns, the variability between the 5th and 67th percentiles underscores the uncertainty inherent in stock market investments. These projections are useful for understanding potential outcomes but should not be the sole basis for investment decisions due to limitations in predicting future market movements.
Asset classes
- Stocks 100%
The portfolio's allocation is singularly focused on stocks, specifically within the U.S. market. This approach aligns with a growth-oriented strategy but lacks diversification across different asset classes like bonds, real estate, or international equities, which can offer risk mitigation and income generation. Diversifying across asset classes can reduce volatility without necessarily compromising long-term growth potential.
Sectors
- Technology 31%
- Financials 14%
- Consumer Discretionary 11%
- Health Care 10%
- Telecommunications 9%
- Industrials 9%
- Consumer Staples 6%
- Energy 3%
- Real Estate 3%
- Utilities 2%
- Basic Materials 2%
The sectoral allocation is heavily skewed towards technology, financial services, and consumer cyclical sectors. This concentration in high-growth sectors can lead to higher volatility, especially in response to market shifts or economic downturns. While this has benefited the portfolio in recent bullish markets, diversifying across a broader range of sectors could help stabilize returns during periods of sector-specific downturns.
Regions
- North America 99%
With 99% of assets allocated to North America, primarily the U.S., the portfolio lacks international diversification. This geographic concentration maximizes exposure to U.S. market growth but also increases vulnerability to domestic economic fluctuations. Including investments in developed and emerging markets outside the U.S. could provide additional growth opportunities and reduce country-specific risk.
Market capitalization
- Mega-cap 41%
- Large-cap 31%
- Mid-cap 20%
- Small-cap 6%
- Micro-cap 2%
The portfolio's emphasis on mega and large-cap stocks, comprising 72% of the allocation, aligns with its growth and stability objectives. These companies often offer more resilience during market downturns compared to their smaller counterparts. However, incorporating a broader mix of medium, small, and micro-cap stocks could enhance potential for higher returns, albeit with increased risk.
Dividends
- FIDELITY ZERO TOTAL MARKET INDEX FUND 1.10%
- Weighted yield (per year) 1.10%
The portfolio's dividend yield of 1.10% contributes to its total return, providing a modest income stream in addition to potential capital gains. While not the primary focus of a growth-oriented strategy, dividends can offer a source of cash flow and reinvestment opportunities, especially in volatile or declining markets. Considering funds or assets with higher dividend yields could enhance income generation without significantly altering the portfolio's growth trajectory.
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