Growth-focused portfolio with high US stock market exposure and low diversification

Report created on Aug 18, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

2/5
Low Diversity
Less diversification More diversification

Positions

This portfolio is heavily concentrated in US equities, with a significant weight in the Fidelity Total Market Index Fund and Vanguard Total Stock Market Index Fund. The allocation suggests a strong belief in the US market's growth potential but highlights a lack of diversification across asset classes and geographies. The inclusion of mid-cap and S&P 500-focused funds introduces some variety, yet the overall strategy remains focused on a single asset class within a single region.

Growth Info

With a Compound Annual Growth Rate (CAGR) of 14.59% and a maximum drawdown of -35.40%, the portfolio has demonstrated robust growth amidst volatility. The days contributing to 90% of returns indicate significant gains were achieved in relatively few trading sessions, underscoring the portfolio's susceptibility to market swings. This performance, while impressive, should be evaluated in the context of its risk profile and the broader market conditions during the period assessed.

Projection Info

Monte Carlo simulations suggest a wide range of outcomes, with a median projected increase of 507.1% over the simulation period. These projections, while optimistic, are based on historical data and should not be seen as guarantees. The high percentage of simulations with positive returns reinforces the growth potential but also underscores the importance of understanding the assumptions behind these projections, including market conditions and portfolio composition.

Asset classes Info

  • Stocks
    100%

The portfolio's exclusive investment in stocks, without allocation to bonds, real estate, or alternative assets, indicates a high-risk, high-reward strategy. This singular focus enhances potential returns but also increases volatility and risk, particularly in market downturns. Diversifying across asset classes can mitigate risk while still offering attractive growth opportunities.

Sectors Info

  • Technology
    30%
  • Financials
    14%
  • Consumer Discretionary
    11%
  • Health Care
    10%
  • Industrials
    10%
  • Telecommunications
    9%
  • Consumer Staples
    6%
  • Energy
    3%
  • Real Estate
    3%
  • Utilities
    3%
  • Basic Materials
    2%

Sector allocation is concentrated in technology, financial services, and consumer cyclical sectors, reflecting a growth-oriented approach. However, this concentration increases vulnerability to sector-specific downturns. Expanding into underrepresented sectors or those with counter-cyclical characteristics could provide a buffer against market volatility.

Regions Info

  • North America
    99%

The portfolio's near-exclusive focus on North America, with 99% of assets allocated there, exposes it to regional economic and political risks. Diversifying geographically could reduce risk and tap into growth opportunities in other regions, particularly in emerging markets.

Market capitalization Info

  • Mega-cap
    37%
  • Large-cap
    29%
  • Mid-cap
    25%
  • Small-cap
    7%
  • Micro-cap
    2%

The distribution across mega, big, medium, small, and micro-cap stocks shows an attempt to balance risk and return within the equity space. However, the heavy weighting towards larger companies, while potentially more stable, may limit exposure to the higher growth potential of smaller firms.

Redundant positions Info

  • Vanguard Total Stock Market Index Fund Admiral Shares
    Fidelity 500 Index Fund
    FIDELITY MID CAP INDEX FUND INSTITUTIONAL PREMIUM CLASS
    Fidelity Total Market Index Fund
    High correlation

The high correlation among the portfolio's assets, particularly the index funds, suggests redundancy that does not contribute to diversification. Reducing overlap by reallocating assets could improve the portfolio's risk-adjusted returns without necessarily increasing its overall risk.

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.

The portfolio's current configuration suggests room for optimization, particularly in reducing asset correlation to enhance diversification without significantly altering the risk profile. An optimal portfolio with a slightly higher expected return indicates that strategic adjustments could yield better risk-adjusted returns.

Dividends Info

  • Fidelity Total Market Index Fund 1.00%
  • FIDELITY MID CAP INDEX FUND INSTITUTIONAL PREMIUM CLASS 1.10%
  • Fidelity 500 Index Fund 0.90%
  • Vanguard Total Stock Market Index Fund Admiral Shares 0.90%
  • Weighted yield (per year) 0.98%

The dividend yields, averaging around 0.98%, contribute to the portfolio's total return. While not the focus of this growth-oriented strategy, dividends offer a source of income and potential reinvestment opportunities, adding to the compounding effect over time.

Ongoing product costs Info

  • Fidelity Total Market Index Fund 0.02%
  • FIDELITY MID CAP INDEX FUND INSTITUTIONAL PREMIUM CLASS 0.02%
  • Fidelity 500 Index Fund 0.02%
  • Vanguard Total Stock Market Index Fund Admiral Shares 0.04%
  • Weighted costs total (per year) 0.03%

The portfolio benefits from exceptionally low costs, with a total expense ratio (TER) of 0.03%. This efficiency supports long-term growth by minimizing the drag on performance due to fees. Maintaining focus on cost-effective investments will continue to be advantageous.

What next?

Ready to invest in this portfolio?

Select a broker that fits your needs and watch for low fees to maximize your returns.

Select broker

Create your own report?

Analyze your portfolio

Join our community!

Join Discord

The information provided on this platform is for informational purposes only and should not be considered as financial or investment advice. Insightfolio does not provide investment advice, personalized recommendations, or guidance regarding the purchase, holding, or sale of financial assets. The tools and content are intended for educational purposes only and are not tailored to individual circumstances, financial needs, or objectives.

Insightfolio assumes no liability for the accuracy, completeness, or reliability of the information presented. Users are solely responsible for verifying the information and making independent decisions based on their own research and careful consideration. Use of the platform should not replace consultation with qualified financial professionals.

Investments involve risks. Users should be aware that the value of investments may fluctuate and that past performance is not an indicator of future results. Investment decisions should be based on personal financial goals, risk tolerance, and independent evaluation of relevant information.

Insightfolio does not endorse or guarantee the suitability of any particular financial product, security, or strategy. Any projections, forecasts, or hypothetical scenarios presented on the platform are for illustrative purposes only and are not guarantees of future outcomes.

By accessing the services, information, or content offered by Insightfolio, users acknowledge and agree to these terms of the disclaimer. If you do not agree to these terms, please do not use our platform.

Instrument logos provided by Elbstream.

Help us improve Insightfolio

Your feedback makes a difference! Share your thoughts in our quick survey. Take the survey