A growth-focused portfolio with heavy US equity exposure and minimal international diversification

Report created on Aug 4, 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 predominantly invested in US equities, with a significant 75% allocation to the Vanguard S&P 500 ETF, complemented by 20% in the Fidelity Total Market Index Fund, and a modest 5% in the Fidelity Total International Index Fund. This composition reflects a strong bias towards US stocks, mirroring the performance of the broader US market. The dominance of two highly correlated US-focused funds suggests a concentration risk that may not be fully mitigated by the portfolio's modest international exposure.

Growth Info

With a Compound Annual Growth Rate (CAGR) of 15.09% and a maximum drawdown of -34.20%, the portfolio has demonstrated robust growth. However, the significant drawdown indicates potential vulnerability during market downturns. The days contributing most to returns highlight the portfolio's reliance on short periods of high returns, which is characteristic of equity-heavy strategies. Comparing these metrics to benchmarks would provide further context on performance, especially during volatile market conditions.

Projection Info

Monte Carlo simulations, projecting future performance based on historical data, suggest a wide range of outcomes with a median increase of 482.4%. While 995 out of 1,000 simulations resulted in positive returns, this method assumes historical market conditions will repeat, an assumption that may not hold true. Such projections are useful for understanding potential volatility but should not be the sole basis for investment decisions.

Asset classes Info

  • Stocks
    100%

The portfolio's assets are entirely in stocks, offering high growth potential but also higher risk. This allocation suits investors with a growth-oriented profile but lacks in hedging strategies against market downturns, such as bonds or alternative investments. Diversifying across different asset classes could reduce volatility without significantly compromising growth potential.

Sectors Info

  • Technology
    32%
  • Financials
    14%
  • Health Care
    10%
  • Telecommunications
    9%
  • Industrials
    8%
  • Consumer Discretionary
    8%
  • Consumer Staples
    6%
  • Energy
    3%
  • Consumer Discretionary
    3%
  • Utilities
    3%
  • Real Estate
    2%
  • Basic Materials
    2%

Sector allocation is heavily weighted towards technology, financial services, and healthcare, making the portfolio susceptible to sector-specific risks. While this concentration may have contributed to the portfolio's strong performance, diversifying across a broader range of sectors could mitigate risk and smooth out returns over time, especially considering potential sector rotations.

Regions Info

  • North America
    95%
  • Europe Developed
    2%
  • Japan
    1%
  • Asia Emerging
    1%
  • Asia Developed
    1%

The geographic allocation heavily favors North America with minimal exposure to international markets. This concentration benefits from the strength of the US economy but limits potential gains from global growth. Increasing exposure to developed and emerging markets outside the US could offer better diversification and access to high-growth regions.

Market capitalization Info

  • Mega-cap
    45%
  • Large-cap
    34%
  • Mid-cap
    18%
  • Small-cap
    2%

The portfolio's focus on mega and large-cap stocks aligns with its growth and risk profile, providing stability and potential for appreciation. However, the minimal exposure to small and micro-cap stocks misses opportunities for higher growth rates these segments can offer, albeit with increased volatility.

Redundant positions Info

  • Vanguard S&P 500 ETF
    Fidelity Total Market Index Fund
    High correlation

The high correlation between the Vanguard S&P 500 ETF and the Fidelity Total Market Index Fund suggests redundancy, limiting diversification benefits. Diversification across uncorrelated assets can reduce risk and smooth out returns, making the portfolio more resilient to market swings.

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 involves addressing the overlap between the Vanguard S&P 500 ETF and Fidelity Total Market Index Fund to enhance diversification without sacrificing growth. Utilizing the Efficient Frontier could identify an allocation that offers a better risk-return trade-off, potentially by incorporating assets with lower correlation or different asset classes.

Dividends Info

  • Fidelity Total Market Index Fund 1.00%
  • FIDELITY TOTAL INTERNATIONAL INDEX FUND INSTITUTIONAL PREMIUM CLASS 2.50%
  • Vanguard S&P 500 ETF 1.20%
  • Weighted yield (per year) 1.22%

The overall dividend yield of 1.22% contributes to the portfolio's total returns, providing a steady income stream in addition to capital appreciation. While the focus on growth may naturally limit higher dividend yields, ensuring a balance between growth and income can enhance long-term returns, especially in volatile markets.

Ongoing product costs Info

  • Fidelity Total Market Index Fund 0.02%
  • FIDELITY TOTAL INTERNATIONAL INDEX FUND INSTITUTIONAL PREMIUM CLASS 0.06%
  • Vanguard S&P 500 ETF 0.03%
  • Weighted costs total (per year) 0.03%

The portfolio benefits from low total expense ratios (TER), averaging 0.03%, which enhances net returns over time. Keeping investment costs low is crucial for maximizing long-term growth, and this portfolio exemplifies effective cost management in its selection of low-cost funds.

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