Balanced portfolio with strong tech focus and high diversification across sectors and geographies

Report created on Jul 21, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

5/5
Highly Diversified
Less diversification More diversification

Positions

The portfolio is well-diversified, with a significant allocation to equities (85%) across various sectors, highlighting a strong focus on technology (31%) and communication services (13%). The inclusion of broad market index funds alongside specific tech investments and a substantial bond component (14%) suggests a balanced approach to growth and stability. This structure allows for participation in market upsides while providing a cushion against volatility.

Growth Info

With a Compound Annual Growth Rate (CAGR) of 14.24% and a maximum drawdown of -31.79%, the portfolio has demonstrated robust growth with a tolerable level of risk. The days contributing most to returns indicate significant gains can be concentrated in short periods, underscoring the importance of staying invested through market cycles for long-term investors.

Projection Info

Monte Carlo simulations, which use historical data to forecast a range of possible future outcomes, suggest a wide range of performance scenarios for this portfolio. With 938 out of 1,000 simulations showing positive returns and a median projected growth of 435.8%, the forward-looking analysis supports the portfolio's potential for substantial growth, albeit with inherent uncertainty.

Asset classes Info

  • Stocks
    85%
  • Bonds
    14%
  • Cash
    1%

The asset class distribution, with a dominant equity position complemented by bonds and a minimal cash reserve, aligns with a balanced risk profile seeking growth while mitigating volatility. This allocation is conducive to achieving long-term financial goals, providing both capital appreciation and income through dividends and interest.

Sectors Info

  • Technology
    31%
  • Telecommunications
    13%
  • Financials
    11%
  • Health Care
    7%
  • Industrials
    7%
  • Consumer Discretionary
    5%
  • Consumer Staples
    4%
  • Energy
    2%
  • Basic Materials
    2%
  • Utilities
    2%
  • Real Estate
    2%
  • Consumer Discretionary
    2%

The sectoral allocation reveals a pronounced tilt towards technology, which could enhance returns but also expose the portfolio to sector-specific risks. The diversification across other sectors like financial services, healthcare, and industrials, however, mitigates this risk, contributing to a more resilient investment strategy.

Regions Info

  • North America
    69%
  • No data
    14%
  • Europe Developed
    7%
  • Asia Emerging
    3%
  • Japan
    2%
  • Asia Developed
    2%
  • Australasia
    1%
  • Africa/Middle East
    1%

The geographic allocation heavily favors North America (69%), with smaller exposures to developed Europe, emerging Asia, and other regions. This concentration may reflect a preference for the stability and growth potential of U.S. markets but also highlights an opportunity to further diversify internationally for risk management and exposure to global growth trends.

Market capitalization Info

  • Mega-cap
    43%
  • Large-cap
    24%
  • Mid-cap
    15%
  • Small-cap
    3%
  • Micro-cap
    1%

The market capitalization breakdown, with a focus on mega (43%) and big (24%) cap stocks, suggests a preference for established, large companies likely to offer stability and steady growth. However, the presence of medium, small, and micro caps, albeit smaller, introduces growth potential and diversification benefits.

Redundant positions Info

  • Fidelity Total Market Index Fund
    Fidelity 500 Index Fund
    High correlation

The high correlation between the Fidelity Total Market Index Fund and the Fidelity 500 Index Fund indicates overlapping exposures that may not contribute to diversification. Reducing redundancy in the portfolio could enhance efficiency by reallocating to less correlated assets, potentially improving the risk-return profile.

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 portfolio's current allocation suggests a well-considered balance between growth potential and risk management. However, optimizing for the Efficient Frontier could further enhance its performance by adjusting the allocation to achieve the best possible risk-return ratio. This might involve reducing overlap in highly correlated assets and increasing international diversification.

Dividends Info

  • Fidelity Select Semiconductors Portfolio 7.40%
  • Fidelity Total Market Index Fund 1.00%
  • Fidelity 500 Index Fund 0.90%
  • FIDELITY U.S. BOND INDEX FUND INSTITUTIONAL PREMIUM CLASS 3.20%
  • Alphabet Inc Class C 0.40%
  • Himax Technologies Inc 3.90%
  • Vanguard Total International Stock Index Fund ETF Shares 2.80%
  • Weighted yield (per year) 2.36%

The portfolio's average dividend yield of 2.36% contributes to its total return, providing a steady income stream in addition to capital appreciation. The high yield from the Fidelity Select Semiconductors Portfolio (7.40%) is particularly noteworthy, though investors should balance yield-seeking with growth and stability considerations.

Ongoing product costs Info

  • Fidelity Select Semiconductors Portfolio 0.62%
  • Fidelity Total Market Index Fund 0.02%
  • Fidelity 500 Index Fund 0.02%
  • FIDELITY U.S. BOND INDEX FUND INSTITUTIONAL PREMIUM CLASS 0.02%
  • Vanguard Total International Stock Index Fund ETF Shares 0.05%
  • Weighted costs total (per year) 0.10%

With an overall portfolio expense ratio of 0.10%, the costs are impressively low, supporting better long-term performance by minimizing the drag on returns. The commitment to low-cost index funds and ETFs is a prudent strategy, particularly in a diversified portfolio where costs can accumulate.

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