Growth focused index portfolio with strong US tilt and momentum driven large cap exposure
Report created on Mar 24, 2026Risk profile
- Secure Speculative
The risk profile, derived from past market volatility, reflects the level of risk the portfolio is exposed to. This assessment helps align your investments with your financial goals and comfort with market fluctuations.
Diversification profile
- Focused Diversified
The diversification assessment evaluates the spread of investments across asset classes, regions, and sectors. This ensures a balanced mix, reducing risk and maximizing returns by not concentrating in any single area.
Positions
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FX Fidelity 500 Index Fund
FXAIX - US3159117502 75.00% -
FZ FIDELITY ZERO INTERNATIONAL INDEX FUND
FZILX - US31635T6091 20.00% -
FZ FIDELITY ZERO TOTAL MARKET INDEX FUND
FZROX - US31635T7081 5.00%
This portfolio is a straightforward, 100% stock mix built almost entirely from three broad index mutual funds. Around three quarters sit in a large US index fund, one fifth in a zero‑fee international index fund, and a small slice in a total US market fund. That structure keeps things simple and highly transparent, with equity risk driving almost all outcomes. A setup like this is very aligned with long‑term, growth‑oriented investing, where short‑term volatility is accepted in exchange for higher return potential. The main tradeoff is that there is no cushion from bonds or cash, so portfolio swings will mirror stock market moves closely, especially during sharp downturns or rapid recoveries.
Growth
Historically, the portfolio has turned $1,000 into about $2,458 since mid‑2018, a compound annual growth rate (CAGR) of 13.62%. CAGR is the “average yearly speed” of growth, smoothing out ups and downs over time. That result is slightly ahead of the broad US market and clearly ahead of the global market benchmark, which is a strong outcome. The maximum drawdown of about -34% is very similar to both benchmarks, showing that downside risk has been in line with typical equity markets. Only 20 days produced 90% of the gains, underlining how missing a few big days can seriously hurt results. Remember, though, past returns and drawdowns do not guarantee similar patterns going forward.
Projection
The Monte Carlo projection models many possible 10‑year futures by “re‑mixing” historical returns in thousands of random paths. It’s like running 1,000 alternate timelines to see a range of outcomes, not just a single forecast. In these simulations, nearly all paths end positive, with a median outcome around a 371% gain over 10 years and an average annualized return close to the historical figure. The lower end still shows the potential for much more modest growth. These scenarios are informative but not promises, because they assume the future will broadly resemble the past in terms of volatility and return behavior, which can be wrong during regime changes or structural market shifts.
Asset classes
- Stocks 100%
All of the capital is invested in stocks, with no meaningful allocation to bonds, cash, or alternatives. That makes the portfolio very “equity heavy,” maximizing long‑term growth potential but also fully exposing it to stock market cycles. Many broad benchmarks blend in bonds or other assets, which can soften drawdowns and reduce volatility at the cost of some return. A 100% stock mix tends to suit investors with long horizons who can tolerate large swings without needing to sell during downturns. If stability or near‑term withdrawals were important, introducing some defensive assets could help smooth the ride, but it would also slightly dampen the upside.
Sectors
- Technology 30%
- Financials 15%
- Consumer Discretionary 10%
- Telecommunications 10%
- Industrials 9%
- Health Care 9%
- Consumer Staples 5%
- Energy 3%
- Basic Materials 3%
- Utilities 2%
- Real Estate 2%
Sector exposure is reasonably broad but clearly tilted toward technology, with meaningful allocations to financials, consumer cyclical, communication services, and industrials. This mix lines up closely with major equity benchmarks, which is a strong indicator of healthy diversification across different parts of the economy. The tech tilt means the portfolio will likely benefit from innovation, digital transformation, and productivity trends, but it can also be more sensitive to interest rate changes or shifts in investor sentiment toward growth companies. A balanced takeaway is that the sector spread is well‑aligned with global standards, while still carrying some extra volatility when tech and other growth‑oriented areas fall out of favor.
Regions
- North America 81%
- Europe Developed 8%
- Japan 3%
- Asia Developed 3%
- Asia Emerging 2%
- Australasia 1%
- Africa/Middle East 1%
Geographically, the exposure is heavily skewed toward North America at about 81%, with the rest spread across developed Europe, Japan, other developed Asia, and small slices of emerging regions and other areas. This is more US‑centric than a typical global market benchmark, which usually has a lower North American weight and higher exposure to the rest of the world. The upside is alignment with the world’s largest, most liquid market that has led performance in recent years. The downside is concentration risk: if US equities underperform for a stretch, there is less diversification benefit from other regions. Some investors prefer this tilt; others seek a more global balance to temper single‑region risk.
Market capitalization
- Mega-cap 47%
- Large-cap 35%
- Mid-cap 17%
- Small-cap 1%
Most of the portfolio is in mega and large companies, with only a small slice in mid and especially small caps. That’s typical for cap‑weighted index strategies, where bigger firms naturally take up more space. Large companies tend to be more stable, better researched, and more resilient in downturns, but they may grow slower than smaller, more nimble firms over very long periods. The limited small‑cap exposure means the portfolio will behave more like the broader large‑cap market, with fewer sharp moves tied to tiny, volatile names. This large‑cap bias is very much in line with mainstream benchmarks, providing a familiar and well‑understood risk profile.
True holdings
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0 NVIDIA CORP 6.58%
Part of fund(s):- FIDELITY ZERO INTERNATIONAL INDEX FUND
- FIDELITY ZERO TOTAL MARKET INDEX FUND
- Fidelity 500 Index Fund
-
1 APPLE INC 5.90%
Part of fund(s):- FIDELITY ZERO INTERNATIONAL INDEX FUND
- FIDELITY ZERO TOTAL MARKET INDEX FUND
- Fidelity 500 Index Fund
-
2 MICROSOFT CORP 5.26%
Part of fund(s):- FIDELITY ZERO INTERNATIONAL INDEX FUND
- FIDELITY ZERO TOTAL MARKET INDEX FUND
- Fidelity 500 Index Fund
-
3 AMAZON.COM INC 3.32%
Part of fund(s):- FIDELITY ZERO INTERNATIONAL INDEX FUND
- FIDELITY ZERO TOTAL MARKET INDEX FUND
- Fidelity 500 Index Fund
-
4 BROADCOM INC 2.80%
Part of fund(s):- FIDELITY ZERO INTERNATIONAL INDEX FUND
- FIDELITY ZERO TOTAL MARKET INDEX FUND
- Fidelity 500 Index Fund
-
5 ALPHABET INC CL A 2.72%
Part of fund(s):- FIDELITY ZERO INTERNATIONAL INDEX FUND
- FIDELITY ZERO TOTAL MARKET INDEX FUND
- Fidelity 500 Index Fund
-
6 ALPHABET INC CL C 2.18%
Part of fund(s):- FIDELITY ZERO INTERNATIONAL INDEX FUND
- FIDELITY ZERO TOTAL MARKET INDEX FUND
- Fidelity 500 Index Fund
-
7 META PLATFORMS INC CL A 2.05%
Part of fund(s):- FIDELITY ZERO INTERNATIONAL INDEX FUND
- FIDELITY ZERO TOTAL MARKET INDEX FUND
- Fidelity 500 Index Fund
-
8 TESLA INC 1.78%
Part of fund(s):- FIDELITY ZERO INTERNATIONAL INDEX FUND
- FIDELITY ZERO TOTAL MARKET INDEX FUND
- Fidelity 500 Index Fund
-
9 BERKSHIRE HATHAWAY INC CL B 1.42%
Part of fund(s):- FIDELITY ZERO INTERNATIONAL INDEX FUND
- FIDELITY ZERO TOTAL MARKET INDEX FUND
- Fidelity 500 Index Fund
- Top 10 total 34.02%
Looking through the funds, the largest underlying positions cluster in the very biggest US tech and growth names like NVIDIA, Apple, Microsoft, Amazon, Alphabet, and Meta. These show up across multiple index funds, so exposure stacks on top of itself, even though there’s no single‑stock position. That overlapping exposure creates hidden concentration in the market’s current leaders, meaning portfolio behavior will be heavily influenced by how those specific companies perform. Overlap is likely understated because only top‑10 ETF holdings are visible. A takeaway here is to be aware that broad index funds still concentrate risk in mega‑cap names, especially during periods when a handful of companies dominate index weights.
Factors
Factor exposure data shows a notable tilt toward momentum, meaning the holdings lean into stocks that have been recent winners. Factor exposure is about these underlying traits—value, size, momentum, quality, low volatility, yield—that research links to long‑term return patterns. A strong momentum tilt can boost returns when trends persist, as rising stocks often keep rising for a while. However, it can also increase drawdowns when leadership suddenly rotates and previous winners correct sharply. Limited coverage for other factors suggests the portfolio is close to “market‑like” overall, but with this added momentum flavor. Being aware of that tilt helps set expectations for how the portfolio might react during sudden market reversals.
Risk contribution
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Fidelity 500 Index Fund
Weight: 75.00% 78.3% -
FIDELITY ZERO INTERNATIONAL INDEX FUND
Weight: 20.00% 16.4% -
FIDELITY ZERO TOTAL MARKET INDEX FUND
Weight: 5.00% 5.3%
Risk contribution shows how much each holding adds to the overall ups and downs, which can differ from its weight. Here, the main US index fund is about 75% of the portfolio but drives roughly 78% of total risk, while the international fund adds less risk than its weight suggests. That means portfolio behavior is dominated by that single US index holding. The total market fund is small but contributes risk roughly proportional to its size. When risk is so concentrated, even though all positions are diversified funds, small changes to that main holding’s weight can meaningfully change overall volatility. Periodic rebalancing can help keep risk aligned with comfort levels and long‑term goals.
Redundant positions
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High correlationFIDELITY ZERO TOTAL MARKET INDEX FUNDFidelity 500 Index Fund
Correlation measures how often assets move together, and in this portfolio the US total market and US 500 index funds are highly correlated. That’s expected, since they own many of the same companies, just in slightly different proportions. High correlation means these holdings behave similarly in most environments, limiting the diversification benefit between them. In downturns, both are likely to fall at the same time, so they won’t offset each other. The main diversification comes instead from the international fund, which has somewhat different drivers. Understanding that correlation picture reinforces that this portfolio is essentially one big bet on global stocks with a strong US core, not a mix of unrelated strategies.
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.
On the risk‑return chart, the current portfolio sits right on the efficient frontier, meaning that given these three funds, the mix is already using risk efficiently. The efficient frontier is the curve showing the best achievable return for each risk level using different weight combinations. The optimal point on that curve has a slightly higher expected return and better Sharpe ratio—return per unit of risk—but also a bit more volatility. A lower‑risk mix offers more stability but a notably lower expected return. Since the portfolio is already efficient, any improvements would come from small tweaks in weights or adding new, less‑correlated building blocks, not from major changes within the current set.
Dividends
- Fidelity 500 Index Fund 1.20%
- FIDELITY ZERO INTERNATIONAL INDEX FUND 2.60%
- FIDELITY ZERO TOTAL MARKET INDEX FUND 1.10%
- Weighted yield (per year) 1.48%
The overall dividend yield sits around 1.48%, reflecting the relatively low payout levels typical of large US and international stock indexes today. Dividends are the cash distributions companies make to shareholders and can provide a steady, if modest, income stream on top of price gains. For a growth‑oriented equity portfolio, a lower yield is common, since many companies reinvest profits into expansion rather than paying them out. Over time, even a modest yield can contribute meaningfully when reinvested, helping compound returns. For investors focused on income, though, this level might feel light, so expectations should center more on total return—price growth plus dividends—rather than income alone.
Ongoing product costs
- Fidelity 500 Index Fund 0.02%
- Weighted costs total (per year) 0.02%
Costs are impressively low, with an overall expense ratio around 0.02%. The expense ratio is like a small annual “membership fee” taken by the fund provider; keeping it low means more of the market’s return stays in your pocket. Over many years, even tiny percentage differences compound into large dollar amounts, so this cost discipline is a real strength. Using broad index funds is one of the most reliable ways to minimize fees without sacrificing diversification. This cost profile is very much in line with best practices and supports better long‑term outcomes, especially when combined with a simple structure and a consistent, long‑horizon approach.
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