A growth oriented zero fee stock portfolio with strong diversification and a clear global equity tilt
Report created on Mar 14, 2026Risk profile
5/7
Diversification profile
4/5
Positions
-
FZ FIDELITY ZERO TOTAL MARKET INDEX FUND
FZROX - US31635T7081 70.00% -
FZ FIDELITY ZERO INTERNATIONAL INDEX FUND
FZILX - US31635T6091 30.00%
This portfolio is a simple two-fund setup holding one total domestic fund and one total international fund, with a 70/30 split in favor of domestic stocks. Everything is in stocks, so there is no built-in buffer from bonds or cash. Compared with common growth benchmarks, the structure is very similar: mostly domestic, a healthy slice of overseas, and broad coverage across thousands of companies. This clean design is a real strength because it avoids overlap confusion and style drift. To refine it further, any adjustments would mainly revolve around tweaking the domestic versus international split or adding a small stabilizing allocation if a smoother ride ever becomes a higher priority.
Growth
Historically, the portfolio’s compound annual growth rate (CAGR) of 12.87% means that, on average, $10,000 grew like a car driving at a steady speed to around $32,900 over ten years, even though the ride was actually bumpy. A max drawdown of about -34% shows that at one point, that $10,000 could have dropped to roughly $6,600 before recovering. This is in line with growth-oriented stock portfolios and is not unusually risky for 100% equities. Compared with broad stock benchmarks, the return profile looks strong and quite typical. While past returns can’t predict the future, they do suggest the risk level has been consistent with the stated growth profile.
Projection
The Monte Carlo analysis uses historical data to simulate 1,000 possible future paths, a bit like running many “what if” market scenarios. It suggests a 5th percentile outcome of about 28.9% total growth and a median of around 329.3%, with most simulations positive and an average annualized return matching historical CAGR at 12.87%. This indicates a wide but reasonable range of potential outcomes for a growth portfolio. It’s important to note that Monte Carlo relies on past volatility and patterns, which may not repeat. Still, these results support the idea that the portfolio is well-positioned for long-term growth while remaining exposed to meaningful downside in severe market environments.
Asset classes
- Stocks 100%
All assets are in stocks, with 100% equity exposure and no allocation to bonds, cash, or alternatives. This matches a growth profile and maximizes long-term return potential but also leaves the portfolio fully exposed during market downturns. Broad diversification within stocks does help spread risk across many companies and industries, which is positive and aligns with best practices for equity investing. For many investors with long horizons, this is an intentional design. Those wanting less severe drawdowns might eventually introduce a modest allocation to more stable assets, which can act like shock absorbers, trading some upside for a smoother journey and more predictable short- to medium-term outcomes.
Sectors
- Technology 28%
- Financials 17%
- Industrials 11%
- Consumer Discretionary 10%
- Health Care 9%
- Telecommunications 9%
- Consumer Staples 5%
- Energy 3%
- Basic Materials 3%
- Utilities 2%
- Real Estate 2%
Sector exposure is well spread: technology is the largest slice at 28%, followed by financials, industrials, consumer cyclical, healthcare, and others. This structure is very similar to many broad market benchmarks and shows that the portfolio doesn’t make big sector bets beyond what the overall market already does. Tech and communication services together are meaningful, which tends to increase sensitivity to interest rates and innovation cycles, but this is a common feature of modern stock markets. This allocation is well-balanced and aligns closely with global standards. If a different risk profile were desired, minor tilts could be introduced, but for pure market exposure, the current sector mix is robust and sensible.
Regions
- North America 72%
- Europe Developed 12%
- Japan 5%
- Asia Developed 4%
- Asia Emerging 3%
- Australasia 1%
- Africa/Middle East 1%
- Latin America 1%
Geographic exposure is dominated by North America at 72%, with solid representation from Europe, Japan, developed Asia, and smaller allocations to emerging regions. This is very similar to global equity benchmarks, which also lean heavily toward North America due to its market size. The result is broad global diversification while still reflecting the economic weight and strength of the U.S. market. Your portfolio's sector composition matches benchmark data, which is a strong indicator of diversification. The modest allocations to emerging regions add some growth potential and diversification, though they will also be more volatile. Anyone wanting even more global balance could slightly increase the international share, but the current setup is well within typical ranges.
Market capitalization
- Mega-cap 44%
- Large-cap 32%
- Mid-cap 17%
- Small-cap 5%
- Micro-cap 1%
The portfolio tilts clearly toward larger companies: 44% mega cap, 32% big, 17% medium, with small and micro caps making up a smaller slice. This is similar to a typical total market benchmark, which is naturally dominated by the largest companies by value. Larger companies tend to be more stable and less volatile, while smaller ones can offer higher growth but with sharper ups and downs. This mix provides a good balance between stability and growth potential. For those who want more aggressive exposure, increasing the share of smaller companies could be one path, but for most growth-oriented investors, this current distribution is already comfortably aligned with broad market norms.
Factors
Factor exposure data is limited, but the available signals show a notable tilt toward momentum at about 54.5%, with this being the dominant factor. Factor exposure describes how much a portfolio leans into certain characteristics, like momentum, value, or quality, that research has tied to returns. A momentum tilt often helps in trending markets, where stocks that have done well keep doing well, but it can hurt during sharp reversals when recent winners lag. With incomplete data on value, size, quality, yield, and low volatility, it’s hard to fully map behavior across all environments. Still, understanding that momentum is a key driver can help set expectations during periods when market leadership changes quickly.
Risk contribution
-
FIDELITY ZERO TOTAL MARKET INDEX FUND
Weight: 70.00% 74.6% -
FIDELITY ZERO INTERNATIONAL INDEX FUND
Weight: 30.00% 25.4%
Risk contribution shows how much each holding adds to overall portfolio ups and downs, which can differ from simple weights. Here, the domestic fund is 70% of the portfolio but contributes about 74.6% of the risk, while the international fund is 30% and contributes about 25.4%. That makes the domestic side a slightly louder “instrument” in the risk orchestra. This pattern is quite normal, given domestic market dominance and somewhat lower volatility internationally in some periods. The top two positions naturally account for 100% of risk because they are the only holdings. If a different balance were desired, adjusting the domestic versus international split is the main lever available to reshape risk contributions.
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.
Risk versus return can be viewed through the Efficient Frontier, which is the set of portfolios that offer the best possible trade-off between volatility and expected return using the current building blocks. In this case, with only two stock funds that already resemble total domestic and total international markets, the main adjustable knob is the 70/30 split. Shifting that balance could move the portfolio along the frontier, slightly changing risk and return characteristics, but it would not radically alter diversification because both components are broad equity baskets. Here, “efficiency” refers strictly to the risk-return ratio, not other important goals like income stability or simplicity, which are also clearly strong features of this design.
Dividends
- FIDELITY ZERO INTERNATIONAL INDEX FUND 2.60%
- FIDELITY ZERO TOTAL MARKET INDEX FUND 1.10%
- Weighted yield (per year) 1.55%
The blended dividend yield of around 1.55% comes from a lower-yield domestic fund at 1.10% and a higher-yield international fund at 2.60%. Dividends are cash payments from companies and can be an important part of total return over time, especially when reinvested. While this yield is modest, it’s typical for a growth-oriented global equity mix. The main engine here is price appreciation rather than income. For investors not needing current cash flow, reinvesting dividends helps compound returns in the background. If reliable income were ever a key goal, shifting a portion toward higher-yielding strategies or adding income-focused assets might be considered, but the current yield is appropriate for a long-term growth focus.
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