A growth-focused portfolio with a strong emphasis on US equities and moderate international exposure

Report created on Jul 25, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

Your portfolio is predominantly invested in stocks across various market caps, with a heavy tilt towards US equities. The allocation is spread across four Fidelity funds, focusing on total market, large-cap growth, small-cap value, and international equities. This structure suggests an attempt to balance growth potential with some level of diversification. However, the significant overlap between the Total Market and Large Cap Growth funds might be limiting the effectiveness of this diversification strategy.

Growth Info

Historically, your portfolio has shown a Compound Annual Growth Rate (CAGR) of 15.28%, which is quite impressive. The maximum drawdown of -35.22% indicates a relatively high risk level, consistent with the growth profile and the portfolio's risk score of 5 out of 7. It's important to note that while past performance is a useful indicator, it doesn't guarantee future results. Your portfolio's reliance on a few sectors and the US market might expose it to higher volatility during market downturns.

Projection Info

Monte Carlo simulations, using historical data to project future outcomes, suggest a wide range of potential returns for your portfolio, with a median annualized return of 14.30%. While these projections are helpful for understanding potential volatility and risk, they are based on past market behavior, which may not predict future movements accurately. Diversifying more internationally or across different asset classes could potentially smooth out some of the volatility indicated by the simulations.

Asset classes Info

  • Stocks
    100%

Your portfolio is entirely allocated to stocks, which aligns with a growth-oriented investment strategy. While stocks offer high return potential, they also come with higher volatility compared to bonds or other asset classes. Considering your risk score, this allocation seems appropriate, but adding bonds or alternative investments could provide a buffer during stock market downturns, potentially leading to a more stable overall performance.

Sectors Info

  • Technology
    30%
  • Financials
    16%
  • Consumer Discretionary
    12%
  • Telecommunications
    9%
  • Health Care
    9%
  • Industrials
    8%
  • Consumer Staples
    5%
  • Real Estate
    4%
  • Energy
    3%
  • Utilities
    3%
  • Basic Materials
    2%

The sector allocation heavily favors technology, financial services, and consumer cyclicals, which are sectors that can offer significant growth but also come with higher volatility. This concentration enhances the portfolio's growth potential but also increases its susceptibility to sector-specific downturns. Diversifying more evenly across sectors could reduce risk without drastically compromising growth potential.

Regions Info

  • North America
    90%
  • Europe Developed
    4%
  • Japan
    2%
  • Asia Emerging
    1%
  • Asia Developed
    1%
  • Latin America
    1%

With 90% of your portfolio in North America, predominantly the US, your international exposure is limited. While the US market has historically offered strong returns, this heavy concentration increases your portfolio's vulnerability to regional economic shifts. Increasing your allocation to international funds, especially in developed and emerging markets outside of North America, could enhance diversification and potentially tap into growth opportunities in other regions.

Market capitalization Info

  • Mega-cap
    41%
  • Large-cap
    22%
  • Mid-cap
    13%
  • Small-cap
    12%
  • Micro-cap
    12%

The market capitalization breakdown shows a balanced approach, with allocations across mega, big, medium, small, and micro-cap stocks. This diversification can help mitigate risk, as different market caps react differently to economic changes. However, the significant weight in mega and big caps, typical for growth-focused portfolios, means your returns may be more sensitive to the fortunes of the largest companies.

Redundant positions Info

  • FIDELITY LARGE CAP GROWTH INDEX FUND INSTITUTIONAL PREMIUM CLASS
    Fidelity Total Market Index Fund
    High correlation

The high correlation between the Total Market and Large Cap Growth funds suggests redundancy in your portfolio, limiting diversification benefits. Diversification is not just about holding different assets but ensuring those assets respond differently to market conditions. Reducing overlap by reallocating from one of these funds into assets with lower correlation could enhance portfolio efficiency.

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 portfolio's current allocation suggests room for optimization, particularly in reducing the overlap between highly correlated assets. Employing the Efficient Frontier concept could help in finding the optimal balance between risk and return, focusing on diversification across less correlated assets. This approach might involve reallocating funds from the overlapping large-cap growth and total market funds into areas with lower correlation, enhancing the portfolio's risk-adjusted returns.

Dividends Info

  • Fidelity Small Cap Value Index Fund 1.70%
  • Fidelity Total Market Index Fund 1.00%
  • FIDELITY LARGE CAP GROWTH INDEX FUND INSTITUTIONAL PREMIUM CLASS 0.30%
  • FIDELITY TOTAL INTERNATIONAL INDEX FUND INSTITUTIONAL PREMIUM CLASS 2.40%
  • Weighted yield (per year) 1.07%

Your portfolio's average dividend yield of 1.07% contributes to total returns, with the international fund offering the highest yield. While dividends are not the primary focus of a growth-oriented strategy, they can provide a steady income stream and help reduce volatility. Considering your growth focus, the current yield seems appropriate, but always be mindful of the balance between growth potential and income generation.

Ongoing product costs Info

  • Fidelity Small Cap Value Index Fund 0.05%
  • Fidelity Total Market Index Fund 0.02%
  • FIDELITY LARGE CAP GROWTH INDEX FUND INSTITUTIONAL PREMIUM CLASS 0.04%
  • FIDELITY TOTAL INTERNATIONAL INDEX FUND INSTITUTIONAL PREMIUM CLASS 0.06%
  • Weighted costs total (per year) 0.04%

The total expense ratio (TER) of 0.04% is impressively low, which is beneficial for long-term growth as costs can significantly erode returns over time. Keeping costs low is a fundamental principle of successful investing, especially important for a portfolio like yours that aims for growth primarily through capital appreciation.

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