Index fund purist energy with just enough tweaks to be mildly inefficient and slightly underwhelming
Report created on Aug 11, 2026Risk profile
5/7
Diversification profile
3/5
Positions
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FX Fidelity 500 Index Fund
FXAIX - US3159117502 45.00% -
FZ FIDELITY ZERO INTERNATIONAL INDEX FUND
FZILX - US31635T6091 20.00% -
FZ FIDELITY ZERO TOTAL MARKET INDEX FUND
FZROX - US31635T7081 20.00% -
SC Schwab U.S. Dividend Equity ETF
SCHD - US8085247976 15.00%
This portfolio is basically three flavors of the same vanilla with a sprinkle of dividend seasoning. You’ve got a big slug in a US large-cap index, another big chunk in a “total” US market fund that largely overlaps it, plus an international index and then a 15% side bet on a high-dividend ETF. Structurally, it’s a core index portfolio, then someone got bored and added an extra US fund and a dividend toy without really changing the personality. It looks diversified on paper, but most of the economic story is the same: big public companies, mostly in one country, marching in near lockstep.
Growth
Historically, this thing did its job but didn’t exactly win any medals. A $1,000 stake crawled up to $2,784, which sounds impressive until you notice the plain US market did better. The portfolio’s CAGR of 13.69% trails the US benchmark by 1.38% a year — death by a thousand tiny gaps. You did beat the global market, but that’s mostly a reward for being heavily US‑tilted. Max drawdown at around -34% matched the US crash experience, so you took the full gut punch without getting the full upside. Classic “almost the index, slightly worse.”
Projection
The Monte Carlo projection basically says: outcomes range from “meh” to “nice,” with a small chance of “oof.” Monte Carlo is just a fancy way of running thousands of parallel market histories to see how often you end up happy. Median result after 15 years is about $2,828 from $1,000, with a decent 73% chance of being ahead at the end. But the possible range runs from roughly flat to pretty great. It’s a reminder that even a sensible-looking portfolio can still deliver wildly different paths, and yesterday’s nice backtest doesn’t promise tomorrow’s smooth ride.
Asset classes
- Stocks 100%
Asset-class “diversification” here is 100% stocks and 0% everything else — full send on equity risk. That’s not automatically wrong, but calling this “Moderately Diversified” is generous; it’s one asset class wearing different tickers. There’s no ballast in sight, so when stocks get punched, every piece of this portfolio leans into the hit. Asset classes are the big building blocks — stocks, bonds, cash, real assets — and this builder used exactly one type of brick. The result: simple, cheap, and very exposed to whatever the stock market feels like doing next.
Sectors
- Technology 31%
- Financials 14%
- Health Care 10%
- Industrials 10%
- Telecommunications 8%
- Consumer Discretionary 8%
- Consumer Staples 7%
- Energy 5%
- Basic Materials 2%
- Utilities 2%
- Real Estate 2%
- Consumer Discretionary 1%
Sector-wise, this is textbook broad-market: a third in tech, then a smooth-ish spread across financials, health care, industrials, and the usual suspects. Nothing wildly obsessive like 60% tech or 30% energy, which is refreshing. But 31% in tech still means a big chunk of your fate is tied to one theme: innovation darlings behaving themselves. The dividend ETF tilts things slightly toward staples, health care, and telecom, adding a “grandparent stocks” layer over the S&P vibe. It’s not a disastrous sector layout — just very benchmark-hugging, with a subtle income twist rather than a bold, intentional tilt.
Regions
- North America 81%
- Europe Developed 7%
- Asia Developed 4%
- Japan 3%
- Asia Emerging 2%
- Australasia 1%
- Africa/Middle East 1%
Geographically, this is “USA and some background extras.” About 81% sits in North America, with the rest sprinkled thinly across Europe, Japan, and a token presence in emerging markets. This is home-country bias 101: a big bet that the US keeps being the main character of global capitalism. The international slice is meaningful enough to appear in marketing materials, but not big enough to truly diversify away from US drama. When the US sneezes, this portfolio catches the same cold; the overseas exposure is more of a garnish than a second pillar.
Market capitalization
- Mega-cap 39%
- Large-cap 39%
- Mid-cap 19%
- Small-cap 2%
- Micro-cap 1%
Across market caps, you’re almost perfectly benchmark: 39% mega, 39% large, and a polite nod to mid, small, and micro. The so‑called “total market” exposure is largely undone by the heavy S&P 500 position, so small caps are a rounding error rather than a real driver. This isn’t a problem if you just want “big companies doing big-company things,” but don’t pretend this is some bold small-cap explorer. The market-cap profile says this portfolio rides with the giants, while the little guys are mostly along for decorative flavor and marketing language.
True holdings
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AB Abbott Laboratories 0.71%
Part of fund(s):- Schwab U.S. Dividend Equity ETF
-
AM Amgen Inc 0.64%
Part of fund(s):- Schwab U.S. Dividend Equity ETF
-
MR Merck & Company Inc 0.64%
Part of fund(s):- Schwab U.S. Dividend Equity ETF
-
KO The Coca-Cola Company 0.63%
Part of fund(s):- Schwab U.S. Dividend Equity ETF
-
UN UnitedHealth Group Incorporated 0.63%
Part of fund(s):- Schwab U.S. Dividend Equity ETF
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HD The Home Depot Inc 0.62%
Part of fund(s):- Schwab U.S. Dividend Equity ETF
-
PG Procter & Gamble Company 0.59%
Part of fund(s):- Schwab U.S. Dividend Equity ETF
-
CV Chevron Corp 0.59%
Part of fund(s):- Schwab U.S. Dividend Equity ETF
-
VZ Verizon Communications Inc 0.58%
Part of fund(s):- Schwab U.S. Dividend Equity ETF
-
PE PepsiCo Inc 0.56%
Part of fund(s):- Schwab U.S. Dividend Equity ETF
- Top 10 total 6.21%
The look-through holdings show a who’s-who of mega-cap comfort stocks: Coke, Pepsi, Merck, Home Depot, UnitedHealth — all showing up via funds, not as bold picks. Overlap looks low only because we’re seeing just the top 10 ETF holdings; in reality, the 500 index and total market fund are basically twins with slightly different hairstyles. That means hidden concentration at the company level is almost certainly higher than this 6% coverage suggests. In plain English: different fund tickers, very similar underlying crowd — the same big names running the show from multiple seats.
Factors
Factor-wise, this portfolio is hilariously middle-of-the-road. Value, size, momentum, quality, and low volatility all sit near “neutral,” which means you’ve basically recreated the global default setting. Yield is a bit low despite hauling in a dedicated dividend ETF, which tells you how growthy and low-yield the rest of the portfolio really is. Factors are the hidden ingredients — the stuff that explains why your returns wiggle the way they do — and here the recipe is “mostly market, lightly salted.” It’s surprisingly balanced, but also a bit directionless: no strong edge, no intentional tilt, just broad exposure.
Risk contribution
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Fidelity 500 Index Fund
Weight: 45.00% 48.0% -
FIDELITY ZERO TOTAL MARKET INDEX FUND
Weight: 20.00% 21.8% -
FIDELITY ZERO INTERNATIONAL INDEX FUND
Weight: 20.00% 17.2% -
Schwab U.S. Dividend Equity ETF
Weight: 15.00% 13.1%
Risk contribution reveals who’s actually rocking the boat, and unsurprisingly the 500 index and total market funds are doing most of the shaking. Together with the international fund, the top three positions account for nearly 87% of total risk — so the dividend ETF is basically a 15% passenger with a 13% say in volatility. Risk/weight ratios near 1 for the big US funds say they’re pulling their fair share of chaos, not hiding anything sneaky. Overall, it’s a straightforward story: one big US core is steering the ship, everyone else is just adjusting the curtains.
Redundant positions
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High correlationFIDELITY ZERO TOTAL MARKET INDEX FUNDFidelity 500 Index Fund
The correlation data quietly exposes the obvious: your S&P 500 fund and your total market fund move almost identically. That’s like owning two copies of the same playlist and feeling proud of your music diversity. Highly correlated assets rise and fall together, so they don’t really help smooth the ride; they just make the ups and downs louder in the same direction. Here, the extra “total market” fund adds complexity and overlap without much new behavior. It’s diversification theater: more tickers, not more genuinely different sources of return.
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.
On the risk/return chart, this portfolio actually holds its head high: it sits right on or near the efficient frontier. The Sharpe ratio of 0.58 isn’t mind-blowing, but the optimizer can’t magically find a dramatically better combo using just these holdings. That means for the level of risk you’re taking, the weighting is impressively sane. Reweighting might squeeze out a little more efficiency, but you’re not leaving huge gains on the table. In a world full of chaotic, badly assembled portfolios, this one is annoyingly competent — structurally efficient even if strategically a bit boring.
Dividends
- Fidelity 500 Index Fund 1.00%
- FIDELITY ZERO INTERNATIONAL INDEX FUND 2.30%
- FIDELITY ZERO TOTAL MARKET INDEX FUND 0.90%
- Schwab U.S. Dividend Equity ETF 3.10%
- Weighted yield (per year) 1.56%
The total yield at 1.56% is pretty underwhelming considering you’re devoting 15% to a dividend ETF. That’s the giveaway that the core of this portfolio is still growth-oriented US large caps with modest payouts. The dividend fund does add some income flavor, but it’s more like adding extra cheese to a salad — noticeable, not transformative. Anyone expecting this setup to rain cash is going to be mildly disappointed. The portfolio is clearly built for total return first, income as a side effect, despite that explicit “dividend equity” guest star in the lineup.
Ongoing product costs
- Fidelity 500 Index Fund 0.02%
- Schwab U.S. Dividend Equity ETF 0.06%
- Weighted costs total (per year) 0.02%
Costs are where this portfolio quietly flexes. A total expense ratio around 0.02% is essentially “paying almost nothing” territory. That’s cheaper than most people’s checking account fees and way less than the usual mutual-fund tax. It’s so low it’s hard to even make fun of it — you basically locked in institutional pricing by accident. The only mildly higher fee is the dividend ETF at 0.06%, which is still bargain-bin cheap. If the performance lagged the US market, it definitely wasn’t because you were overpaying managers; this is low-cost indexing done correctly.
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