A US heavy equity portfolio concentrated in large cap growth with modest international exposure

Report created on Dec 13, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

The portfolio is dominated by four equity funds with a clear large cap tilt: 55% in a broad large-cap index, 29% in an international growth fund, and two smaller allocations to mid and small cap index funds at 8% each. Compared with a global market cap weighted benchmark this mix shows a heavier US large cap exposure and less fixed income or alternative assets than a typical balanced benchmark. This structure matters because asset mix drives most long-term returns and volatility. Recommendation: simplify overlapping equity exposures, clarify the intended role of the international sleeve, and introduce a modest allocation to uncorrelated assets for better alignment with a balanced objective.

Growth Info

Historic returns show strong growth with notable drawdowns. Using CAGR — Compound Annual Growth Rate — as a simple measure of average annual growth (imagine the steady speed needed to travel from start to finish), a hypothetical $10,000 invested at a 13.23% CAGR would grow substantially over a decade. The portfolio’s max drawdown of -34.01% signals sizable peak-to-trough loss in stress periods. Compared to common benchmarks this performance outpaced many broad indexes but also carried above-average downside. Recommendation: maintain a long-term view, ensure appropriate liquidity for drawdowns, and consider incremental de-risking or hedging if the goal is lower short-term volatility.

Projection Info

Monte Carlo simulation projects many possible future outcomes by randomly sampling returns and correlations modeled on history; think of it like running thousands of hypothetical market journeys to see the range of endings. With 1,000 simulations the portfolio produced a median end value of about 370.8% and a 5th percentile of 39.0%, with most runs positive. Annualized returns across simulations were in line with historical CAGR. Limitations: simulations rely on past return distributions and correlations that can change, so these are scenarios not predictions. Recommendation: use projections as planning guides and stress-test specific cash needs or withdrawal scenarios.

Asset classes Info

  • Stocks
    98%
  • Cash
    2%

Asset class composition is heavily equity oriented at 98% stocks and 2% cash with negligible fixed income or alternatives. For a portfolio labelled balanced this is equity-heavy relative to typical balanced allocations that often include a material bond allocation to dampen volatility. High equity share increases long-term return potential but also raises sequence-of-returns and drawdown risk for shorter horizons. Recommendation: define the target risk budget and consider adding a bond or alternative sleeve to smooth volatility, or formally reclassify the portfolio as growth if a high equity exposure is intentional.

Sectors Info

  • Technology
    27%
  • Financials
    15%
  • Industrials
    12%
  • Consumer Discretionary
    11%
  • Health Care
    10%
  • Telecommunications
    8%
  • Consumer Staples
    6%
  • Energy
    3%
  • Basic Materials
    3%
  • Utilities
    2%
  • Real Estate
    2%

Sector exposure shows meaningful concentration in technology (27%) and financial services (15%) with reasonable representation across 11 sectors. This tilt can increase growth potential but also cyclicality, since tech-heavy portfolios often react strongly to interest rate and sentiment shifts. The sector mix aligns broadly with common large-cap benchmarks but with a slightly larger tech weight, which has driven recent outperformance. Recommendation: monitor sector drift and rebalance periodically, or add defensive or income-producing assets if the aim is to reduce cyclicality without losing growth exposure.

Regions Info

  • North America
    74%
  • Europe Developed
    15%
  • Japan
    3%
  • Asia Developed
    3%
  • Asia Emerging
    3%
  • Latin America
    1%

Geographic allocation is 74% North America with 26% spread across developed Europe, Japan, emerging Asia and Latin America. This represents an overweight to the US relative to many global market-cap benchmarks and reduces currency and international diversification. Concentration in one region can be beneficial in strong domestic cycles but increases vulnerability to single-country shocks. Recommendation: review the strategic home bias — if broader global diversification is desired, consider increasing allocations to other developed and emerging markets in measured steps to improve international risk-return balance.

Market capitalization Info

  • Mega-cap
    42%
  • Large-cap
    28%
  • Mid-cap
    22%
  • Small-cap
    5%
  • Micro-cap
    1%

Market-cap exposure leans toward mega and large caps with 42% mega and 28% big caps while mid and small caps provide 22% and 5% respectively. Large caps typically offer stability, liquidity, and lower volatility compared with smaller companies, while mid and small caps add growth and diversification benefits. The current split supports a core stable equity base with growth complements, but overlapping exposures among funds can erode intended diversification. Recommendation: ensure mid and small cap sleeves are truly additive and not substantially duplicative of the large cap core, and consider modest reweights if a specific size bias is desired.

Redundant positions Info

  • VANGUARD MID-CAP INDEX FUND ADMIRAL SHARES
    Fidelity 500 Index Fund
    High correlation

Correlation measures how assets move together; a correlation of 1 means perfect tandem motion and 0 means no relationship. The portfolio shows a highly correlated pair: the mid-cap index fund and the large-cap index fund, indicating overlapping exposure rather than true diversification. When assets are highly correlated the benefit of holding multiple funds diminishes, especially in downturns when correlated assets can fall together. Recommendation: remove or reduce overlapping funds, or replace one with an asset that historically has lower correlation such as bonds, value-oriented equities, or international small caps to enhance genuine diversification.

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.

Efficient Frontier optimization finds the best risk-return trade-offs among the current set of assets by adjusting weights; the Efficient Frontier is a graph of portfolios that offer the highest expected return for a given level of risk. Optimization here should start by removing redundant highly correlated assets so the solver can work with truly distinct building blocks. Note this process optimizes only by changing allocations among existing assets and does not add new instruments. Recommendation: run a constrained mean-variance optimization after pruning overlaps, then validate results against practical constraints like liquidity taxes and personal risk limits.

Dividends Info

  • Fidelity 500 Index Fund 1.10%
  • EUROPACIFIC GROWTH FUND CLASS R-6 11.40%
  • VANGUARD MID-CAP INDEX FUND ADMIRAL SHARES 1.50%
  • VANGUARD SMALL-CAP GROWTH INDEX FUND ADMIRAL SHARES 0.50%
  • Weighted yield (per year) 4.07%

Dividend yield across the portfolio averages about 4.07% with a notably high yield reported for the international growth fund. Dividend yield is the annual cash return from holdings expressed as a percentage of price — like rental income from a property. Yields can boost total return and provide income but very high yields may reflect distribution policies, sector concentration, or one-off events and may not be sustainable. Recommendation: verify the sustainability and source of elevated yields, consider tax implications of dividend income, and balance yield goals with growth and capital preservation objectives.

Ongoing product costs Info

  • Fidelity 500 Index Fund 0.02%
  • EUROPACIFIC GROWTH FUND CLASS R-6 0.47%
  • VANGUARD MID-CAP INDEX FUND ADMIRAL SHARES 0.05%
  • VANGUARD SMALL-CAP GROWTH INDEX FUND ADMIRAL SHARES 0.07%
  • Weighted costs total (per year) 0.16%

Total Expense Ratio (TER) averages about 0.16% which is impressively low and supports better long-term net returns. TER is the annual fund fee expressed as a percentage of assets under management — think of it as the yearly maintenance cost of holding a fund. Lower costs compound favorably over time, particularly in passive strategies. One active sleeve has higher fees and may warrant periodic performance review to justify its expense. Recommendation: keep low-cost core funds, review active fund performance net of fees, and consider swapping high-cost overlap for lower-cost equivalents if no excess return is evident.

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