Grade my Fidelity portfolio

🏅 **Overall Grade: C+** Your Fidelity portfolio shows encouraging absolute gains but falls short on risk-adjusted metrics and diversification depth. Below is a scorecard explaining how the grade was derived and what to improve. --- ## 1 Scorecard | Dimension | Weight | What We Saw | Sub-grade | |-----------|--------|-------------|-----------| | Return vs. Benchmark | 35 % | +8.3 % YTD vs. SPY +10.1 % → trails by ≈ 1.8 ppt | C | | Risk Control | 25 % | Max drawdown −1.9 % (good) but Sharpe −9.9 & Sortino −1.0 (bad) | D+ | | Diversification | 15 % | 20+ ETFs/funds, beta 0.63; yet 21 % of P/L from one ETF (TSPA) | B- | | Cost Efficiency | 10 % | No commission drag, low-cost index vehicles dominate | A | | Trading Discipline | 10 % | Equal number of wins/losses (11/11), but winners bigger than losers | B | | Liquidity / Flexibility | 5 % | 4.4 % cash (SPAXX), tight bid-ask spreads across holdings | A- | **Weighted score ≈ 77 / 100 → C+** --- ## 2 Strengths 😊 1. **Capital Preservation** – A sub-2 % peak-to-trough drawdown keeps stress low even during choppy weeks. 2. **Low Beta (0.63)** – Portfolio swings are ~37 % calmer than the S&P 500, helping smooth the ride. 3. **Fee-Friendly Line-up** – Vanguard, iShares and Fidelity index ETFs keep expense ratios minimal. --- ## 3 Weak Spots ⚠️ 1. **Poor Risk-Adjusted Return** – Negative Sharpe/Sortino indicates returns aren’t compensating for even the modest volatility you take. 2. **Concentration Creep** – TSPA alone generated ~20 % of account profit and now represents 25 % of market value; a single-ETF stumble could dent performance. 3. **Style Overlap** – Many positions tilt toward large-cap growth/quality (TSPA, SCHG, VONG, VFQY). That redundancy dilutes the benefit of holding so many tickers. 4. **Idle Alpha** – 4-plus % cash earns minimal yield relative to short-term Treasuries or money-market ETFs north of 5 %. --- ## 4 Action Plan 🎯 1. **Rebalance Winners** • Trim TSPA back toward 10 % weight and redistribute into lagging but high-conviction assets (e.g., value, small-cap, or non-US). 2. **Add Diversifiers** • A 5-10 % sleeve in short-term T-bill ETFs (SGOV, BIL) boosts yield without equity beta. • Consider defensive sectors (health-care, utilities) to shore up downside. 3. **Sharpen Risk Metrics** • Implement a 2-ATR trailing stop or 8 % hard stop to prevent lingering losers; aim for win-loss ratio > 1.2. • Review position sizing—losing ETFs like VONG and IDMO are small, but repeated small losses erode Sharpe. 4. **Deploy Idle Cash** • Move excess SPAXX into higher-yield options or opportunistic buys during pull-backs. 5. **Benchmark Quarterly** • Track a blended 60/40 or 70/30 index instead of pure SPY to match your equity/bond mix; target ≥ 100 bps annual alpha with equal or lower volatility. --- ## 5 Next Milestone 🚀 Set a calendar reminder for early December: we’ll grade again to see if rebalancing lifts Sharpe above +0.5 and trims the TSPA exposure below 15 %. Small tweaks can turn that C+ into a solid **B+**—let’s make it happen! 💪