Balanced portfolio with a strong focus on US markets and a mix of stocks and bonds

Report created on Jul 11, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

This portfolio is structured around a 70% allocation to stocks and a 30% allocation to bonds, with a minimal cash position. The majority stake in the Fidelity Total Market Index Fund suggests a broad exposure to the US equities market, complemented by significant positions in US bonds and a smaller allocation to international equities. This composition indicates a balanced approach, aiming to mitigate risk through diversification while still targeting growth through its equity holdings.

Growth Info

With a Compound Annual Growth Rate (CAGR) of 10.14% and a maximum drawdown of -25.11%, the portfolio has demonstrated resilience and growth over time. The days contributing to 90% of returns highlight the impact of significant market movements on performance. Comparing these figures to benchmarks could provide further insight into the portfolio's relative strength, especially during market downturns.

Projection Info

Monte Carlo simulations, which use historical data to project future outcomes, show a wide range of potential returns for this portfolio. With 95% of simulations resulting in positive returns, there's a strong likelihood of future growth. However, it's important to remember that these projections are hypothetical and cannot guarantee future performance.

Asset classes Info

  • Stocks
    70%
  • Bonds
    29%
  • Cash
    1%

The asset class distribution with 70% in stocks and 30% in bonds is typical for a balanced portfolio. This allocation aims to strike a balance between risk and return, leveraging the growth potential of stocks while using bonds to provide stability and income. The minimal cash holding suggests a strategy fully invested in the market, maximizing potential returns.

Sectors Info

  • Technology
    20%
  • Financials
    11%
  • Consumer Discretionary
    8%
  • Industrials
    7%
  • Health Care
    7%
  • Telecommunications
    6%
  • Consumer Staples
    4%
  • Energy
    2%
  • Basic Materials
    2%
  • Real Estate
    2%
  • Utilities
    2%

Sector allocation shows a heavy weighting towards technology, financial services, and consumer cyclicals, which are sectors often associated with growth but also with higher volatility. The diversification across other sectors like industrials, healthcare, and consumer defensive adds a layer of stability, mitigating sector-specific risks.

Regions Info

  • North America
    61%
  • No data
    30%
  • Europe Developed
    4%
  • Japan
    2%
  • Asia Emerging
    1%
  • Asia Developed
    1%

Geographic allocation is heavily skewed towards North America, with minimal exposure to international markets. This concentration in a single region can amplify risks related to regional economic or political events. Diversifying more significantly into international markets could provide a buffer against such risks.

Market capitalization Info

  • Mega-cap
    30%
  • Large-cap
    22%
  • Mid-cap
    13%
  • Small-cap
    4%
  • Micro-cap
    1%

The market capitalization breakdown reveals a focus on mega and large-cap stocks, which are typically less volatile than their smaller counterparts. This aligns with the portfolio's balanced risk profile, as these companies often have more stable earnings and dividends. However, adding more small and micro-cap exposure could enhance growth potential.

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.

Regarding optimization along the Efficient Frontier, this portfolio appears to balance risk and return effectively. However, there's always room for improvement, such as increasing international diversification or adjusting sector allocations based on changing market conditions. These adjustments could potentially offer a better risk-return profile.

Dividends Info

  • Fidelity Total Market Index Fund 1.00%
  • FIDELITY U.S. BOND INDEX FUND INSTITUTIONAL PREMIUM CLASS 3.20%
  • FIDELITY ZERO INTERNATIONAL INDEX FUND 2.50%
  • Weighted yield (per year) 1.81%

The portfolio's dividend yield of 1.81% contributes to its total return, providing a steady income stream on top of capital appreciation. This yield, while modest, is a crucial component of the portfolio's balanced approach, offering returns even in flat or declining markets.

Ongoing product costs Info

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

The exceptionally low total expense ratio (TER) of 0.02% is a significant advantage, ensuring that costs do not erode returns. Keeping investment costs low is critical for enhancing long-term performance, and this portfolio exemplifies cost-efficient investing.

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