A balanced focus on large-cap equities with minimal bond exposure for steady growth

Report created on Jul 19, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

Your portfolio primarily consists of a large-cap equity index fund, making up 90% of the allocation, complemented by a short-term treasury bond index fund covering the remaining 10%. This composition suggests a strategy that leans heavily towards stock market exposure while maintaining a conservative bond holding to mitigate volatility. The heavy reliance on a single equity fund, especially one tracking the top 500 U.S. companies, indicates a focus on achieving growth through well-established firms. However, this also introduces a significant concentration risk, particularly in the sectors these companies operate within.

Growth Info

Historically, your portfolio has achieved a Compound Annual Growth Rate (CAGR) of 13.85%, which is impressive. However, it's important to remember that past performance is not always indicative of future results. The maximum drawdown of -30.93% highlights the potential volatility and risk associated with a high concentration in equities. The days contributing to 90% of returns being so few underscores the unpredictability and the importance of staying invested over the long term to capture these gains.

Projection Info

Monte Carlo simulations, which use historical data to project a range of possible future outcomes, suggest your portfolio has a median potential growth of 201.3% over the simulated period. While this tool provides valuable insights, it's crucial to understand its limitations. These projections assume that historical market conditions will repeat in the future, which may not always be the case. Diversification and regular portfolio reviews can help manage the risks highlighted by the simulation's wider outcome range.

Asset classes Info

  • Stocks
    90%
  • Bonds
    10%

The allocation towards 90% stocks and 10% bonds is typical for a growth-oriented investor with a moderate risk tolerance. While stocks offer higher potential returns, they come with increased volatility. Bonds, on the other hand, provide stability and income, albeit with lower growth prospects. This mix supports a balanced approach to achieving long-term financial goals, but it's essential to periodically reassess this balance to ensure it aligns with changing market conditions and personal risk tolerance.

Sectors Info

  • Technology
    28%
  • Financials
    13%
  • Health Care
    10%
  • Consumer Discretionary
    9%
  • Telecommunications
    8%
  • Industrials
    7%
  • Consumer Staples
    5%
  • Energy
    3%
  • Utilities
    2%
  • Real Estate
    2%
  • Basic Materials
    2%

Your portfolio's sector allocation closely mirrors the broader market, with significant weightings in technology, financial services, and healthcare. This sector concentration reflects the current composition of the top U.S. companies but also exposes the portfolio to sector-specific risks. For example, technology stocks, while offering high growth potential, can be more volatile and sensitive to regulatory changes. Diversifying across more sectors or rebalancing towards underrepresented areas could mitigate these risks.

Regions Info

  • North America
    90%
  • No data
    10%

The geographic allocation is heavily skewed towards North America, representing 90% of the portfolio. This concentration in a single region, while potentially beneficial during periods of strong U.S. market performance, limits exposure to international growth opportunities and increases vulnerability to domestic economic downturns. Increasing exposure to developed and emerging markets outside of North America could enhance diversification and potentially reduce risk.

Market capitalization Info

  • Mega-cap
    42%
  • Large-cap
    31%
  • Mid-cap
    16%
  • Small-cap
    1%

Your portfolio's market capitalization breakdown, with a focus on mega and large-cap stocks, aligns with its goal of stability and growth. These companies are typically more resilient during market downturns and have consistent revenue streams. However, the limited exposure to mid and small-cap stocks may mean missing out on higher growth opportunities these companies can offer. Consider a slight increase in allocation to mid and small-cap stocks to capture potential upside while still maintaining an overall conservative stance.

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.

Your current portfolio, while already well-positioned, could potentially be optimized further for the best possible risk-return ratio using the Efficient Frontier concept. This approach would involve adjusting the asset allocation slightly to find the optimal balance between expected return and risk, based solely on the assets you currently hold. It's a theoretical model that assumes rational investor behavior and market conditions, so real-world applicability may vary.

Dividends Info

  • FIDELITY SHORT-TERM TREASURY BOND INDEX FUND INSTITUTIONAL PREMIUM CLASS 3.00%
  • Fidelity 500 Index Fund 0.90%
  • Weighted yield (per year) 1.11%

The dividend yield of your portfolio stands at 1.11%, driven by the equity component's yield of 0.90% and the bond fund's higher yield of 3.00%. While not the primary focus, these dividends contribute to the total return and provide a modest income stream. For investors seeking higher income, reallocating a portion towards assets with higher dividend yields or interest payments could be considered, though this may alter the risk-return profile of the portfolio.

Ongoing product costs Info

  • FIDELITY SHORT-TERM TREASURY BOND INDEX FUND INSTITUTIONAL PREMIUM CLASS 0.03%
  • Fidelity 500 Index Fund 0.02%
  • Weighted costs total (per year) 0.02%

With total portfolio costs averaging around 0.02%, your investment expenses are impressively low. This efficiency is crucial for long-term growth, as lower costs directly translate to higher net returns. Maintaining a focus on low-cost index funds, as you've done, is a sound strategy that aligns with best practices for maximizing investment performance over time.

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