Simple two fund portfolio somehow both boring and annoyingly effective at the same time
Report created on Apr 13, 2026Risk profile
- Secure Speculative
The risk profile, derived from past market volatility, reflects the level of risk the portfolio is exposed to. This assessment helps align your investments with your financial goals and comfort with market fluctuations.
Diversification profile
- Focused Diversified
The diversification assessment evaluates the spread of investments across asset classes, regions, and sectors. This ensures a balanced mix, reducing risk and maximizing returns by not concentrating in any single area.
Positions
-
FX Fidelity 500 Index Fund
FXAIX - US3159117502 73.14% -
FZ FIDELITY ZERO INTERNATIONAL INDEX FUND
FZILX - US31635T6091 26.86%
This “portfolio” is basically two index funds in a trench coat pretending to be a sophisticated strategy. Over 73% is a plain vanilla US large-cap index, and the rest is a low-cost international fund stapled on like an afterthought. It’s the investment equivalent of chicken and rice: basic, repetitive, zero flair, but annoyingly hard to criticize on fundamentals. The good news is there’s almost nothing here to screw up. The bad news is there’s also almost nothing here that shows real thought beyond “I heard index funds are good.” Takeaway: structurally, this is simple, coherent, and fine — just not exactly a masterclass in intentional design.
Growth
Performance-wise, this thing has been that quiet kid in class who gets A–s and never causes trouble. A 12.76% CAGR since 2018 turned $1,000 into $2,509 — that’s real money, not Monopoly money. You slightly trailed the US market by 1.09% a year but beat the global market by 1.46% a year, which is basically code for “you bet heavily on the US and it mostly worked.” Max drawdown was -33.61%, right in line with the benchmarks; no magical downside protection here, just riding the roller coaster. Past data is like yesterday’s weather though — helpful, but not a guarantee the next storm behaves the same.
Projection
The Monte Carlo projection basically says, “You’ll probably be fine, but don’t get cocky.” Monte Carlo is just a fancy way of running thousands of alternate futures using historical-like randomness to see what could happen, not what will happen. Median outcome after 15 years is $2,691 from $1,000, with a 75% chance of ending positive — decent odds, like the responsible cousin of gambling. The possible range though ($1,028 to $7,890) screams: expectations need a helmet. Takeaway: this setup has a solid probability of reward, but the path could be bumpy, and “most likely” still leaves plenty of room for disappointment.
Asset classes
- Stocks 100%
Asset allocation here is subtle: it doesn’t exist. You’re at 100% stocks, zero bonds, zero real assets, zero anything-that-doesn’t-fluctuate-like-a-mood-swing. That’s not diversification; that’s an all-in personality trait. Great if the time horizon is long and you actually sleep through volatility. Terrible if you stare at your account every time markets drop 20% and start drafting emotional breakup texts to your broker. A balanced asset mix is like adding carbs and vegetables to your dinner — boring but stabilizing. This is just a giant plate of equity protein, which works as long as you accept that drawdowns will be loud and disrespectful.
Sectors
- Technology 29%
- Financials 15%
- Industrials 11%
- Consumer Discretionary 10%
- Health Care 9%
- Telecommunications 9%
- Consumer Staples 5%
- Energy 4%
- Basic Materials 3%
- Utilities 3%
- Real Estate 2%
Sector tilt screams, “I trust the broad market and I’m not asking questions.” Tech sitting at 29% is high but basically mirrors modern capitalism being powered by code and cloud instead of factories and fax machines. Financials, industrials, and consumer stuff fill out the rest like a standard index salad. Nothing wildly over-the-top, but let’s be honest: if tech ever seriously faceplants, this portfolio is calling in sick with it. The upside is you’re not doing any weird niche sector bets. The downside is you’re handcuffed to whatever the index loves most at any given time, whether or not that’s rational.
Regions
- North America 75%
- Europe Developed 10%
- Japan 4%
- Asia Developed 4%
- Asia Emerging 3%
- Australasia 1%
- Africa/Middle East 1%
- Latin America 1%
Geography-wise, this is “USA with a side of world.” About 75% in North America says home bias is alive and well. The rest is scattered across developed and emerging regions like a token gesture to global investing — enough to claim diversification at parties, not enough to pretend you truly meant it. This worked in recent years because US markets have been the star of the show, but that’s not a permanent law of physics. Takeaway: it’s fine to be US-heavy, but don’t confuse “what has worked lately” with “what always will.” This is more nationalism than neutrality.
Market capitalization
- Mega-cap 48%
- Large-cap 34%
- Mid-cap 16%
- Small-cap 1%
Market cap exposure is basically “big companies or bust.” With 48% in mega-caps and 34% in large-caps, you’re dancing with the giants; mid-caps and small-caps are just invited for decoration at 16% and 1%. That means your returns are heavily dictated by how the biggest, most famous firms behave. When they win, it looks genius. When they stumble, there’s nowhere to hide. Small caps are barely a rounding error here, so don’t pretend you’ve got meaningful exposure to the scrappy underdog part of the market. This is a blue-chip popularity contest, and your ballot is already filled out.
Factors
Factor profile is hilariously neutral across the board. Value, size, momentum, quality, low volatility — all sit around “market-like.” That means you haven’t accidentally built a weird science experiment; you’ve just hugged the broad market with mild yield apathy. Yield is the only notable low exposure at 30%, which means you’re not here for dividends, you’re here for growth and vibes. Factor exposure is basically the ingredient label behind portfolio returns; yours says “standard recipe, nothing spicy.” Takeaway: the behavior of this portfolio in different markets will look a lot like the big indexes — no clever hidden edge, but also no bizarre side effects.
Risk contribution
-
Fidelity 500 Index Fund
Weight: 73.14% 77.1% -
FIDELITY ZERO INTERNATIONAL INDEX FUND
Weight: 26.86% 22.9%
Risk contribution is where the mask slips a bit. The US index fund is 73% of the weight but contributes about 77% of the total risk — slightly more drama than its size suggests. The international fund, at 27% weight and 23% risk, is actually the calmer sibling. Risk contribution is just asking, “Who’s actually rocking the boat?” and the answer is: the US fund, loudly. Having one position driving over three-quarters of your volatility is fine if that’s intentional. If not, it’s a reminder that “two funds” doesn’t equal “two equal drivers” — one is clearly behind the wheel.
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 efficient frontier, this portfolio is surprisingly competent. The Sharpe ratio of 0.52 isn’t heroic, but the analysis says you’re basically on or very near the optimal curve given these two funds. Translation: for the risk you’re taking, the mix is pretty efficient. There is a max-Sharpe combo with slightly higher return (15.05%) and a bit more risk (19.73%), but you’re not wasting potential in some clownish way. Risk vs. return is actually dialed in decently. Annoying for roasting purposes, but good for your money. The only real “upgrade” would require adding new ingredients, not just remixing the same two.
Dividends
- Fidelity 500 Index Fund 0.90%
- FIDELITY ZERO INTERNATIONAL INDEX FUND 2.50%
- Weighted yield (per year) 1.33%
Dividend yield at 1.33% is… polite. The US fund drips a tiny 0.90%, while the international fund does a bit more at 2.50%, but overall this is not an income generator; it’s a growth chaser with a side of modest pocket change. If someone tried to live off this yield, they’d mostly be living off disappointment. Dividends aren’t everything, but they can cushion volatility a bit. Here, the cushioning is more like a thin yoga mat on concrete. Takeaway: if income ever becomes a goal, this setup will need a serious rethink, not just wishful squinting at the numbers.
Ongoing product costs
- Fidelity 500 Index Fund 0.02%
- Weighted costs total (per year) 0.01%
Costs are so low it’s almost suspicious. A total TER of 0.01–0.02% is basically free in investing terms — like paying a service fee in loose change. You somehow avoided the classic trap of shiny, overpriced funds, which means more return stays in your pocket instead of funding someone’s glossy marketing brochure. I’ll give reluctant credit here: you either did your homework or got very lucky clicking the right tickers. There’s nothing to roast on fees, so the only warning is not to ruin this by layering on expensive, redundant products later out of boredom.
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