A cozy two-fund comfort zone that's too afraid to dip its toes into the real diversification pool
Report created on Sep 7, 2025Risk profile
4/7
Diversification profile
4/5
Positions
-
FX Fidelity 500 Index Fund
FXAIX - US3159117502 75.00% -
FT FIDELITY TOTAL INTERNATIONAL INDEX FUND INSTITUTIONAL PREMIUM CLASS
FTIHX - US31635V6386 25.00%
At first glance, this portfolio seems to have taken the "keep it simple" mantra a bit too seriously. With a whopping 75% parked in a single domestic index fund and the remainder in an international fund, it's like deciding to diversify your diet by adding salt to your potatoes. Sure, there's a nod to international exposure, but it's more of a polite clap than a standing ovation. In the grand scheme of portfolio construction, this is akin to wearing floaties in the shallow end — safe, but hardly adventurous or adequately diversified.
Growth
Let's talk about that historical performance — a CAGR of 14.25% with a max drawdown of -33.69%. It's like enjoying a roller coaster ride that you didn't realize you were tall enough to ride. Impressive returns, sure, but that drawdown is a stark reminder that what goes up can come crashing down, especially when you're mostly riding on the coattails of the S&P 500. This performance is akin to celebrating a home run when you've been batting with a tennis racket — effective in a bull market, but potentially disastrous when the game changes.
Projection
Monte Carlo simulations are like those weather forecasts that predict sunshine but advise you to carry an umbrella just in case. With projections ranging from a 69.6% to a 569.7% increase, it suggests your portfolio might either be on the brink of mediocrity or ready to launch into the stratosphere. However, relying solely on these simulations is like planning your retirement around a lottery ticket. It's essential to remember that these projections are as certain as your chances of winning said lottery.
Asset classes
- Stocks 99%
- Cash 1%
The asset class distribution here is like deciding your entire wardrobe will be 99% socks and 1% everything else. Sure, socks are important, but you're going to run into some issues when you need to attend anything more sophisticated than a sock puppet convention. This over-reliance on stocks, with a symbolic nod to cash, screams of a high-risk, high-reward strategy that doesn't consider the weather might not always be sunny.
Sectors
- Technology 28%
- Financials 16%
- Consumer Discretionary 11%
- Industrials 10%
- Health Care 9%
- Telecommunications 9%
- Consumer Staples 6%
- Energy 3%
- Basic Materials 3%
- Utilities 3%
- Real Estate 2%
The sector allocation feels a bit like someone who's just discovered buffet dining and is piling their plate high with what they know best. With a 28% allocation to technology, it's clear where the heart lies — possibly alongside a Silicon Valley dream. However, this tech-heavy tilt could lead to indigestion if the sector takes a hit. Diversifying across sectors is more than a suggestion; it's a strategy to avoid betting the farm on the digital revolution alone.
Regions
- North America 77%
- Europe Developed 10%
- Japan 4%
- Asia Emerging 4%
- Asia Developed 3%
- Australasia 1%
- Africa/Middle East 1%
- Latin America 1%
The geographic allocation here screams "home country bias" louder than a patriot on the 4th of July. With 77% in North America, it's clear there's a strong belief in the American (and slightly in the Canadian) dream. While patriotism is commendable, in the investing world, it's akin to only eating at restaurants within a 10-mile radius of your home. Sure, you might find some great spots, but you're missing out on a world of flavors.
Market capitalization
- Mega-cap 46%
- Large-cap 33%
- Mid-cap 17%
- Small-cap 2%
The portfolio's market capitalization mix is like deciding your social circle will consist of 46% celebrities, 33% influencers, 17% regular folks, and a sprinkle of people you met once at a party. This heavy tilt towards mega and big caps suggests a play-it-safe strategy, akin to always ordering the chicken at a gourmet restaurant. While it might minimize volatility, it also limits exposure to the growth potential in smaller, more agile companies.
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.
When it comes to risk vs. return optimization, this portfolio is like someone who's convinced that a balanced diet consists of different flavors of potato chips. While it might seem diverse on the surface, it's not the epitome of nutritional balance or, in this case, investment health. The Efficient Frontier is a concept designed to maximize returns for a given level of risk, but this portfolio seems to be playing a game of darts in the dark, hoping to hit a bullseye by luck rather than strategy.
Dividends
- FIDELITY TOTAL INTERNATIONAL INDEX FUND INSTITUTIONAL PREMIUM CLASS 2.30%
- Fidelity 500 Index Fund 1.20%
- Weighted yield (per year) 1.48%
The dividends yield here is a gentle reminder that there's at least some income trickling in, akin to finding loose change in your couch cushions. With a total yield of 1.48%, it's not going to fund a lavish lifestyle, but it might cover the cost of your streaming service subscriptions. In a portfolio leaning heavily on growth through capital appreciation, these dividends are like a polite nod to the concept of income generation, albeit a very modest one.
Ongoing product costs
- FIDELITY TOTAL INTERNATIONAL INDEX FUND INSTITUTIONAL PREMIUM CLASS 0.06%
- Fidelity 500 Index Fund 0.02%
- Weighted costs total (per year) 0.03%
Now, for a ray of sunshine in what might seem like a storm of critique: the costs. With a total expense ratio (TER) of 0.03%, this portfolio is leaner than a marathon runner on race day. It's a refreshing sight in a world where fees can eat into your returns like a pack of hungry termites. This is one area where the portfolio doesn't just float; it swims gracefully, proving that it's possible to keep costs low without sacrificing access to broad markets.
What next?
Ready to invest in this portfolio?
Select a broker that fits your needs and watch for low fees to maximize your returns.
Create your own report?
Join our community!
The information provided on this platform is for informational purposes only and should not be considered as financial or investment advice. Insightfolio does not provide investment advice, personalized recommendations, or guidance regarding the purchase, holding, or sale of financial assets. The tools and content are intended for educational purposes only and are not tailored to individual circumstances, financial needs, or objectives.
Insightfolio assumes no liability for the accuracy, completeness, or reliability of the information presented. Users are solely responsible for verifying the information and making independent decisions based on their own research and careful consideration. Use of the platform should not replace consultation with qualified financial professionals.
Investments involve risks. Users should be aware that the value of investments may fluctuate and that past performance is not an indicator of future results. Investment decisions should be based on personal financial goals, risk tolerance, and independent evaluation of relevant information.
Insightfolio does not endorse or guarantee the suitability of any particular financial product, security, or strategy. Any projections, forecasts, or hypothetical scenarios presented on the platform are for illustrative purposes only and are not guarantees of future outcomes.
By accessing the services, information, or content offered by Insightfolio, users acknowledge and agree to these terms of the disclaimer. If you do not agree to these terms, please do not use our platform.
Instrument logos provided by Elbstream.
Help us improve Insightfolio
Your feedback makes a difference! Share your thoughts in our quick survey. Take the survey