A conservative portfolio with a strong cash position and international stock exposure

Report created on Jun 10, 2025

Risk profile Info

2/7
Conservative
Less risk More risk

Diversification profile Info

5/5
Highly Diversified
Less diversification More diversification

Positions

The portfolio is notably conservative, with a significant allocation to the Fidelity® Government Money Market Fund at 58.78%, suggesting a strong preference for capital preservation and liquidity. The Vanguard Total International Stock Index Fund ETF Shares represent 41.06% of the portfolio, providing substantial international equity exposure. The minuscule presence of the Fidelity Total Market Index Fund at 0.16% barely affects the overall composition. This structure aligns with a conservative risk profile, prioritizing stability over aggressive growth.

Growth Info

Historically, the portfolio has delivered a Compound Annual Growth Rate (CAGR) of 3.80%, with a maximum drawdown of -16.35%. These figures reflect a conservative strategy's typical performance, with moderate growth and limited downside risk. The days contributing to 90% of returns being concentrated in just 19.0 days indicate that performance peaks have been relatively few, a common characteristic of lower-risk investments.

Projection Info

Forward projections, based on Monte Carlo simulations, suggest a wide range of outcomes with a median increase of 162.6% in portfolio value. The simulations, which account for randomness and historical volatility, indicate a high likelihood (95.2%) of positive returns. However, it's crucial to remember that these projections are speculative and depend on historical patterns that may not repeat.

Asset classes Info

  • No data
    59%
  • Stocks
    40%
  • Cash
    1%

The portfolio's asset class distribution, with 59% classified as 'Unknown' due to the money market fund, 40% in stocks, and 1% in cash, underscores its conservative stance. The heavy allocation to a government money market fund enhances liquidity and reduces volatility, while the equity component offers growth potential. This balance is typical for investors prioritizing safety but willing to accept some market exposure for potential gains.

Sectors Info

  • No data
    59%
  • Financials
    9%
  • Industrials
    6%
  • Technology
    5%
  • Consumer Discretionary
    4%
  • Health Care
    4%
  • Basic Materials
    3%
  • Consumer Staples
    3%
  • Telecommunications
    2%
  • Energy
    2%
  • Utilities
    1%
  • Real Estate
    1%

Sector allocations within the equity component are diversified across financial services, industrials, technology, and healthcare, among others. This broad sector exposure within the international stock ETF helps mitigate sector-specific risks. However, the dominance of 'Unknown' due to the large money market position obscures the portfolio's overall sector diversification.

Regions Info

  • No data
    59%
  • Europe Developed
    16%
  • Asia Emerging
    7%
  • Japan
    6%
  • Asia Developed
    4%
  • North America
    3%
  • Australasia
    2%
  • Africa/Middle East
    1%
  • Latin America
    1%

Geographically, the portfolio has a strong international focus, with significant exposure to developed Europe, emerging Asia, and Japan. This global diversification can offer growth opportunities in various economies and reduce the impact of regional downturns. However, the 'Unknown' category, representing the money market fund, dilutes the overall geographic diversification.

Market capitalization Info

  • No data
    59%
  • Mega-cap
    18%
  • Large-cap
    13%
  • Mid-cap
    7%
  • Small-cap
    2%

The market capitalization breakdown shows a leaning towards mega and large-cap stocks within the international ETF, which typically offer stability and lower volatility compared to smaller companies. This approach is consistent with the portfolio's conservative risk profile, though the 'Unknown' category, again representing the money market fund, makes up the majority.

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.

Considering the portfolio's conservative nature and its current asset allocation, optimization towards the Efficient Frontier could involve slight adjustments for enhanced return potential without significantly increasing risk. However, the primary focus should remain on maintaining a low risk profile, as this aligns with the investor's apparent goals and risk tolerance.

Dividends Info

  • Fidelity Total Market Index Fund 1.10%
  • Fidelity® Government Money Market Fund 4.40%
  • Vanguard Total International Stock Index Fund ETF Shares 2.90%
  • Weighted yield (per year) 3.78%

The dividend yields from the funds, with a total portfolio yield of 3.78%, contribute to the portfolio's income generation. This yield is particularly appealing for conservative investors seeking regular income alongside capital preservation. The money market fund's higher yield of 4.40% is notable, providing a steady income stream.

Ongoing product costs Info

  • Fidelity Total Market Index Fund 0.02%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.02%

The portfolio's costs are impressively low, with Total Expense Ratios (TER) for the involved funds at 0.02% and 0.05%, contributing to better net performance over time. Low costs are crucial for conservative strategies, where the objective is to preserve capital and keep returns steady.

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