A balanced and highly diversified portfolio with a strong focus on stocks and minimal costs

Report created on Jul 29, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

5/5
Highly Diversified
Less diversification More diversification

Positions

This portfolio primarily consists of a significant allocation to a total market index fund, complemented by international equities and a conservative stake in bonds. The allocation reflects a strategy that leans heavily towards equities (90%) for growth, with bonds (10%) serving to mitigate volatility and provide income. Such a composition is indicative of a balanced approach, aiming to harness the growth potential of equities while employing bonds to cushion against market downturns.

Growth Info

Historically, this portfolio has demonstrated robust performance with a Compound Annual Growth Rate (CAGR) of 12.89%. The maximum drawdown of -32.36% suggests periods of significant volatility, likely during market corrections or downturns. However, the days contributing most to returns are relatively few, highlighting the impact of short-term gains. Compared to benchmarks, these figures suggest a strong performance, particularly for investors who remained invested through market cycles.

Projection Info

Monte Carlo simulations, which use historical data to forecast a range of possible outcomes, project an annualized return of 9.21% across 1,000 scenarios. This projection underscores the portfolio's potential for sustained growth, albeit with inherent market risks. The wide range between the 5th and 67th percentiles indicates variability in potential outcomes, emphasizing the importance of long-term commitment and risk tolerance.

Asset classes Info

  • Stocks
    89%
  • Bonds
    10%
  • Cash
    1%

The asset class distribution, with a dominant position in stocks (90%) and a smaller allocation to bonds (10%), is geared towards growth while offering a measure of stability through fixed income. This allocation aligns with the portfolio's balanced risk profile, aiming to capitalize on the higher return potential of equities, complemented by the income and lower volatility characteristics of bonds.

Sectors Info

  • Technology
    25%
  • Financials
    14%
  • Consumer Discretionary
    10%
  • Industrials
    9%
  • Health Care
    9%
  • Telecommunications
    8%
  • Consumer Staples
    5%
  • Energy
    3%
  • Basic Materials
    3%
  • Real Estate
    2%
  • Utilities
    2%

Sector allocation is broad, covering technology, financial services, consumer cyclical, industrials, and healthcare as the top five sectors. This diversification helps spread risk across different economic sectors, reducing the impact of sector-specific downturns. However, the heavy weighting in technology may expose the portfolio to higher volatility, given the sector's rapid growth and significant price fluctuations.

Regions Info

  • North America
    73%
  • No data
    10%
  • Europe Developed
    7%
  • Japan
    3%
  • Asia Emerging
    3%
  • Asia Developed
    2%
  • Australasia
    1%
  • Africa/Middle East
    1%

Geographically, the portfolio is predominantly invested in North America (73%), with minimal exposure to emerging markets and developed regions outside of North America. This concentration may limit global diversification benefits and exposure to growth opportunities in emerging markets, which could be essential for risk management and return enhancement.

Market capitalization Info

  • Mega-cap
    37%
  • Large-cap
    28%
  • Mid-cap
    17%
  • Small-cap
    5%
  • Micro-cap
    2%

With a focus on mega and big cap stocks, the portfolio is positioned to benefit from the stability and growth potential of large, established companies. However, the relatively smaller allocation to medium, small, and micro caps suggests a conservative approach, potentially missing out on the higher growth prospects of smaller 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.

Looking at risk vs. return optimization, the portfolio seems well-positioned on the Efficient Frontier, indicating an effective balance between risk and potential returns based on current allocations. However, ongoing assessment and slight adjustments could further enhance this balance, especially considering the evolving market conditions and personal financial goals.

Dividends Info

  • Fidelity Total Market Index Fund 1.00%
  • FIDELITY TOTAL INTERNATIONAL INDEX FUND INSTITUTIONAL PREMIUM CLASS 2.40%
  • FIDELITY U.S. BOND INDEX FUND INSTITUTIONAL PREMIUM CLASS 3.20%
  • Weighted yield (per year) 1.47%

The portfolio's dividend yield stands at 1.47%, reflecting a modest income component. This yield, contributed by both the equity and bond holdings, provides a regular income stream and can offer a cushion during market downturns. It's a valuable feature for those seeking income in addition to capital appreciation.

Ongoing product costs Info

  • Fidelity Total Market Index Fund 0.02%
  • FIDELITY TOTAL INTERNATIONAL INDEX FUND INSTITUTIONAL PREMIUM CLASS 0.06%
  • FIDELITY U.S. BOND INDEX FUND INSTITUTIONAL PREMIUM CLASS 0.02%
  • Weighted costs total (per year) 0.03%

The exceptionally low total expense ratio (TER) of 0.03% is a standout feature, ensuring that investment costs do not significantly erode returns. This cost efficiency is particularly beneficial over the long term, where even small differences in fees can have a substantial impact on net returns.

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