Growth-focused portfolio with a strong emphasis on momentum and large-cap exposure

Report created on Aug 19, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

This portfolio is primarily invested in equities, with a significant 60% allocation to a total market index fund and a diverse mix of international, momentum, and large-cap growth funds making up the remainder. The focus on funds, particularly those tracking broad market indices and momentum strategies, suggests a strategy aiming for growth while attempting to mitigate risk through diversification across different geographies and sectors.

Growth Info

Historically, the portfolio has shown a robust compound annual growth rate (CAGR) of 15.94%, with a maximum drawdown of -34.01%. These figures highlight the portfolio's growth potential, albeit with considerable volatility. The days contributing most to returns indicate significant gains are concentrated in short periods, emphasizing the importance of staying invested through market cycles for growth investors.

Projection Info

Monte Carlo simulations project a wide range of outcomes, with the median scenario suggesting significant growth potential. However, the broad spread between the 5th and 67th percentiles underscores the uncertainty inherent in investing, particularly in growth-oriented portfolios. Such projections are useful for setting expectations but should be viewed with caution as they rely on historical data, which may not predict future performance accurately.

Asset classes Info

  • Stocks
    100%

The portfolio's allocation is entirely in stocks, which aligns with its growth profile but lacks diversification across asset classes. This concentration increases exposure to market volatility. Introducing other asset classes, such as bonds or real estate, could provide income and reduce overall portfolio risk while potentially smoothing out returns over time.

Sectors Info

  • Technology
    27%
  • Financials
    18%
  • Industrials
    10%
  • Telecommunications
    10%
  • Consumer Discretionary
    9%
  • Health Care
    8%
  • Consumer Staples
    6%
  • Energy
    3%
  • Utilities
    2%
  • Basic Materials
    2%
  • Real Estate
    2%
  • Consumer Discretionary
    2%

Sector allocation is heavily weighted towards technology and financial services, which are known for their growth potential but also for higher volatility. The underrepresentation in defensive sectors like utilities and consumer staples may increase the portfolio's sensitivity to market downturns. Balancing growth-oriented sectors with more stable ones could enhance resilience during market fluctuations.

Regions Info

  • North America
    82%
  • Europe Developed
    9%
  • Japan
    3%
  • Asia Developed
    2%
  • Asia Emerging
    2%
  • Australasia
    1%
  • Africa/Middle East
    1%

Geographic distribution is heavily skewed towards North America, with modest exposure to developed and emerging markets abroad. This concentration benefits from the dynamism of the US market but might limit opportunities for diversification and exposure to global growth trends. Increasing allocations to underrepresented regions could capture growth outside the US and reduce geographic concentration risk.

Market capitalization Info

  • Mega-cap
    45%
  • Large-cap
    32%
  • Mid-cap
    16%
  • Small-cap
    4%
  • Micro-cap
    1%

The focus on mega and big-cap stocks supports the portfolio's growth and momentum strategy, as these companies often have more established business models and market leadership. However, the relatively smaller allocation to mid, small, and micro-cap stocks could mean missing out on higher growth potential from these segments. A more balanced market cap distribution might enhance return prospects and diversification.

Redundant positions Info

  • FIDELITY ZERO TOTAL MARKET INDEX FUND
    FIDELITY LARGE CAP GROWTH INDEX FUND INSTITUTIONAL PREMIUM CLASS
    High correlation

The high correlation between the Fidelity Zero Total Market Index Fund and the Fidelity Large Cap Growth Index Fund Institutional Premium Class indicates overlapping exposures that may not contribute to diversification. Identifying and reducing such overlaps can help in better risk management by ensuring that each investment contributes uniquely to the portfolio's 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 current portfolio setup could benefit from an optimization process focusing on reducing correlated exposures and enhancing diversification across asset classes, sectors, and geographies. Employing the Efficient Frontier concept could identify an asset mix that offers the best possible risk-return trade-off, considering the investor's growth objectives and risk tolerance.

Dividends Info

  • FIDELITY LARGE CAP GROWTH INDEX FUND INSTITUTIONAL PREMIUM CLASS 0.30%
  • FIDELITY ZERO INTERNATIONAL INDEX FUND 2.40%
  • FIDELITY ZERO TOTAL MARKET INDEX FUND 1.10%
  • Invesco S&P International Developed Momentum ETF 1.90%
  • iShares MSCI USA Momentum Factor ETF 0.90%
  • Invesco S&P 500® Momentum ETF 0.60%
  • Weighted yield (per year) 1.25%

The portfolio's dividend yield contributes to its total return, albeit modestly. Given the growth orientation, the emphasis is less on income generation and more on capital appreciation. However, considering dividend-paying investments could offer a dual benefit of income and potential for growth, providing a buffer during market downturns.

Ongoing product costs Info

  • FIDELITY LARGE CAP GROWTH INDEX FUND INSTITUTIONAL PREMIUM CLASS 0.04%
  • Invesco S&P International Developed Momentum ETF 0.25%
  • iShares MSCI USA Momentum Factor ETF 0.15%
  • Invesco S&P 500® Momentum ETF 0.13%
  • Weighted costs total (per year) 0.04%

The portfolio's overall expense ratio is low, which is advantageous for long-term growth as costs can significantly erode returns over time. Maintaining focus on cost efficiency while exploring opportunities to diversify and optimize the portfolio can support sustained performance.

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