Two fund global stock portfolio with strong US tilt and efficient low cost growth profile
Report created on Apr 21, 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
-
FZ FIDELITY ZERO TOTAL MARKET INDEX FUND
FZROX - US31635T7081 80.00% -
FZ FIDELITY ZERO INTERNATIONAL INDEX FUND
FZILX - US31635T6091 20.00%
This portfolio is very straightforward: two stock index funds, with 80% in a broad US market fund and 20% in an international fund. That means every dollar is invested in shares of companies around the world, with no bonds or cash in the mix. This simplicity makes it easier to understand how the portfolio behaves, because performance mostly tracks global stock markets. A structure like this focuses on long‑term growth rather than income or capital stability. The strong US core combined with a smaller international sleeve creates a clear, rules‑based setup that behaves a lot like a global equity index with a home bias, which helps explain the “growth” risk classification and moderately diversified score.
Growth
From 2018-08-03 to 2026-04-20, a hypothetical $1,000 in this portfolio grew to $2,578, a compound annual growth rate (CAGR) of 13.11%. CAGR is like your average speed on a road trip, smoothing out bumps along the way. Over this period, the portfolio slightly lagged the US market (14.27% CAGR) but beat the global market benchmark (11.63% CAGR). The worst drop, or max drawdown, was -34.65% during early 2020, similar in size and timing to both benchmarks. This shows the portfolio behaves much like broad equities: strong long‑term growth potential but sharp temporary declines, especially in major market shocks.
Projection
The Monte Carlo projection uses past returns and volatility to simulate 1,000 possible 15‑year paths for a $1,000 investment. Think of it as running many alternate “weather forecasts” for markets instead of predicting one exact outcome. The median result is $2,822, with a wide middle range from about $1,865 to $4,211. The overall average simulated annual return is 8.22%, and about three‑quarters of scenarios end with a positive result. These numbers highlight both the growth potential and the uncertainty: long‑term outcomes vary a lot, and even the low‑end scenarios remain possible. As always, simulations rely on historical patterns that may not repeat.
Asset classes
- Stocks 100%
Asset‑class allocation is very simple: 100% stocks, with no bonds, cash, or alternatives. Stocks represent ownership in companies and historically have offered higher long‑term returns than bonds, but with more ups and downs along the way. Having everything in one asset class concentrates risk in equity markets, which helps explain the 5/7 risk score. Relative to many blended portfolios that mix stocks and bonds, this setup leans firmly toward growth over stability. The benefit is clear participation in global corporate growth; the trade‑off is that there is no built‑in cushion from safer assets during market downturns, so drawdowns can be deep and emotionally challenging.
Sectors
- Technology 28%
- Financials 15%
- Industrials 11%
- Consumer Discretionary 10%
- Health Care 10%
- Telecommunications 9%
- Consumer Staples 5%
- Energy 4%
- Basic Materials 3%
- Utilities 3%
- Real Estate 2%
Sector exposure is broad, with technology leading at 28%, followed by financials, industrials, consumer discretionary, health care, and others in smaller slices. This pattern looks similar to many global equity benchmarks, where tech and finance are major components. A tech‑heavier allocation often enhances growth but can be more sensitive to interest rates and innovation cycles. The presence of every major sector, including utilities, energy, staples, and real estate, spreads business‑type risk across different parts of the economy. This broad sector mix is a positive sign: it means the portfolio is not overly dependent on a single industry and generally reflects the structure of modern stock markets.
Regions
- North America 81%
- Europe Developed 8%
- Japan 3%
- Asia Developed 3%
- Asia Emerging 2%
- Australasia 1%
- Africa/Middle East 1%
- Latin America 1%
Geographically, about 81% of the portfolio sits in North America, with the rest spread across Europe, Japan, other developed Asia, and emerging regions. This is a clear US and North America tilt compared with common global indices, where the US share is typically lower. A home tilt can benefit from strong US corporate earnings and deep markets, but it also ties a lot of the portfolio’s fate to one economy and currency. The international slice adds some diversification by tapping into other growth drivers and policy environments. Overall, the mix balances familiarity and global reach, but with the US clearly in the driver’s seat.
Market capitalization
- Mega-cap 44%
- Large-cap 31%
- Mid-cap 18%
- Small-cap 5%
- Micro-cap 2%
By market capitalization, this portfolio leans toward larger companies: 44% mega‑cap, 31% large‑cap, with the rest in mid, small, and micro caps. Market cap is just company size by stock market value. Bigger companies tend to be more established and often less volatile, while smaller firms can be more volatile but sometimes faster growing. This distribution looks similar to broad market indices, where giants dominate total value. The presence of mid, small, and micro caps, while smaller, still introduces exposure to different parts of the corporate lifecycle. That mix supports diversification across company sizes without pulling the portfolio sharply toward either extreme.
Factors
Factor exposure across value, size, momentum, quality, and low volatility is essentially neutral, with scores hovering near the 50% “market‑like” mark. Factor exposure is like checking what underlying traits your portfolio leans into, such as cheapness (value) or stability (low volatility). A neutral profile suggests the funds track broad markets without deliberately tilting toward specific factor strategies. The only mild outlier is yield at 30%, indicating a lower emphasis on high‑dividend stocks. That’s common in growth‑oriented equity portfolios that reinvest earnings rather than paying large dividends. Overall, the factor picture is balanced, which tends to make behavior similar to global indices.
Risk contribution
-
FIDELITY ZERO TOTAL MARKET INDEX FUND
Weight: 80.00% 83.7% -
FIDELITY ZERO INTERNATIONAL INDEX FUND
Weight: 20.00% 16.3%
Risk contribution shows how much each holding drives the portfolio’s overall ups and downs, which can be very different from just looking at weights. The US total market fund is 80% of the portfolio but contributes about 83.71% of total risk, a bit more than its size. The international fund is 20% by weight and 16.29% of risk, slightly less. A risk/weight ratio above 1.0 for the US fund means it’s a touch more volatile or more central to portfolio swings than the international slice. Overall, risk is dominated by one core holding, which is expected in a simple two‑fund structure like this.
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.
The risk‑return chart shows this portfolio sitting on or very close to the efficient frontier. The efficient frontier represents the best possible return for each risk level using only the existing holdings in different weights. The current mix has a Sharpe ratio of 0.53, while the best combination of these two funds reaches about 0.7 with slightly higher risk. Sharpe ratio is a simple way to compare risk‑adjusted returns: higher is better for the same risk‑free rate. Being on or near the frontier is a positive sign that, for this two‑fund setup, the allocation is already making efficient use of what’s available.
Dividends
- FIDELITY ZERO INTERNATIONAL INDEX FUND 2.40%
- FIDELITY ZERO TOTAL MARKET INDEX FUND 1.00%
- Weighted yield (per year) 1.28%
The overall dividend yield is 1.28%, with the international fund yielding around 2.40% and the US total market fund about 1.00%. Dividend yield is the annual cash payout as a percentage of price, like rent from owning a property. Here, income plays a smaller role; most of the return is expected to come from price growth rather than dividends. That’s common for broad market index funds in developed markets, where many companies reinvest profits into expansion. For investors who automatically reinvest dividends, this lower yield still feeds back into growth, compounding over time even though the cash flow headline number looks modest.
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