Personalized Portfolios Account

A diversified mix of stocks and bonds tailored to your goals and comfort level with risk

Asset allocation

After we assign your account(s) to a goal, we will recommend a mix of stocks, bonds, and short-term investments—sometimes referred to as an asset allocation—that we believe is appropriate for your goal and comfort level with risk.

DO YOU HAVE THE MIX THAT'S RIGHT FOR YOU?


Up to 90% of the variability of a portfolio's returns over time can be explained by asset allocation‡


Graphic shows the factors that go into determining how we assign asset allocation and risk. The first is time horizon. Short-term goals generally lend themselves to a more conservative profile, while long-term goals generally lend themselves to a more aggressive profile. The second is your risk tolerance, a more conservative risk profile generally aligns with someone for whom market changes cause anxiety, while a more aggressive profile generally aligns with someone who is more comfortable with market changes. Last, is your current financial situation. No emergency fund, decreasing future income, and large amounts of debt generally indicate a more conservative profile, while an adequate emergency fund, the potential for increasing future income, and a small amount of debt generally indicate a more aggressive profile.


Asset allocation does not ensure a profit or guarantee against a loss.
‡"Does Asset Allocation Policy Explain 40%, 90% or 100% of Performance?", Roger G. Ibbotson and Paul D. Kaplan, Financial Analysts Journal, January/February 2000.


How we align asset allocation and risk


Recommending an asset allocation for your goal is the result of a rigorous process that accounts for a range of factors, including your time horizon, financial situation, and comfort with risk. Our recommended mix of stocks, bonds, and short-term investments is designed to enhance your chances of reaching your goal.

Time horizon




Time to and duration of goal


While we look at the amount of time until you’ll start taking withdrawals, we also consider a number of other factors, including assets assigned to your goal, the amount you’re saving toward your goal, and the possibility you may need to withdraw money early.

Risk tolerance




Emotional capacity to bear risk


We'll explore your comfort level with risk and willingness to take it on, as well as your investment experience, investing knowledge, and how you may react during a market decline.

Financial situation




Financial ability to bear risk


We assess your age, overall household financial situation, any funds you have set aside for emergencies, essential expenses, and any assets you have that are not assigned to this goal.


Understanding the relationship between risk and return


As the illustration below shows, asset allocation selection comes with its own set of trade offs. In general, the higher the percentage of stocks, the higher the potential return. However, as you can see, this higher potential return also comes with a higher risk that the account could fluctuate in value more—particularly in the short term. It's important to remember that all these options, including the most conservative ones, are subject to market volatility and the risk that your account could lose money.

Graphic shows the average annual return, highest 1-year return, lowest 1-year return, highest 5-year return, lowest 5-year return, highest 10-year return, lowest 10-year return and risk % (also known as standard deviation) for eight hypothetical asset allocations based on historical performance data of various indexes from 1926 through December 31, 2022, data, available from Morningstar. The hypothetical asset allocations are: Conservative, Moderate with Income, Balanced, Growth with Income, Growth, and Aggressive Growth. Average annual returns are as follows, Conservative 5.78%, Moderate with Income 6.55%, Moderate 7.19%, Balanced 7.80%, Growth with Income 8.38%, Growth 8.84%, Aggressive Growth 9.56% and All Stock 10.09%. The risk % for each asset allocation are: Conservative 4.57%, Moderate with Income 6.23%, Moderate 7.88%, Balanced 9.60%, Growth with Income 11.35%, Growth 13.07%, Aggressive Growth 15.73% and All Stock 18.38%. In general, the more aggressive the portfolio the greater potential for both higher returns and greater losses, in both the short and long term.

Important information about performance returns. Performance cited represents past performance. Past performance, before and after taxes, does not guarantee future results and current performance may be lower or higher than the data quoted. Investment returns and principal will fluctuate with market and economic conditions, and you may have a gain or loss when you sell your assets. Your return may differ significantly from those reported. The underlying investments held in a client’s account may differ from those of the accounts included in the composite. No investment strategy or risk management technique can guarantee returns or eliminate risk in any market environment.
*The above example (of various asset allocations) is for illustrative purposes only and does not reflect actual Personalized Portfolios data. Asset mix performance figures are based on the weighted average of annual return figures for certain benchmarks for each asset class represented. Historical returns and volatility of the stock, bond, and short-term asset classes are based on the historical performance data of various indexes from 1926 through 12/31/23 data available from Morningstar.
Note: International stock represented by IA SBBI US Large Stock TR USD 1926–1969 (IA SBBI US Large Stock TR USD was used to represent international stocks prior to 1970), MSCI EAFE 1970–2000, MSCI ACWI Ex USA 2001–12/31/23. Domestic stocks represented by IA SBBI US Large Stock TR USD Ext 1926–1986, Dow Jones U.S. Total Market 1987–12/31/23. Bonds represented by U.S. Intermediate-Term Government Bond Index 1926–1975, Bloomberg U.S. Aggregate Bond 1976–12/31/23. Short term represented by 30-day U.S. Treasury bills 1926–12/31/23. Although past performance does not guarantee future results, it may be useful in comparing alternative investment strategies over the long term. Performance returns for actual investments will generally be reduced by fees and expenses not reflected in these investments' hypothetical illustrations.
†Standard deviation does not indicate how the securities actually performed but indicates the volatility of their returns over time. A higher standard deviation indicates a wider dispersion of past returns and thus greater historical volatility. The chart does not represent the performance of any Fidelity fund. You cannot invest directly in an index. Stock prices are more volatile than those of other securities. Government bonds and corporate bonds have more moderate short-term price fluctuation than stocks but provide lower potential long-term returns. US Treasury bills maintain a stable value if held to maturity, but returns are generally only slightly above the inflation rate. The purpose of the asset mixes is to show how asset mixes may be created with different risk-and-return characteristics to help meet an investor’s goals. You should choose your own investments based on your particular objectives and situation. Remember that you may change how your account is invested. Be sure to review your decisions periodically to make sure they are still consistent with your goals.
Before investing in any investment product, you should consider its investment objectives, risks, and expenses. This material has been prepared for informational purposes only and is not to be considered investment advice or a solicitation for investment. Information contained in this report is as of the period indicated and is subject to change. Please read the applicable advisory program’s Form ADV Program Fundamentals, available from a Fidelity advisor or at Fidelity.com/information.
Market indexes are included for informational purposes and for context with respect to market conditions. All indexes are unmanaged, and performance of the indexes includes reinvestment of dividends and interest income, unless otherwise noted. Review the definitions of indexes for more information. Please note an investor cannot invest directly into an index. Therefore, the performance of securities indexes do not incorporate or otherwise reflect the fees and expenses typically associated with managed accounts or investment funds.
IA SBBI US Large Stock Index tracks the monthly return of S&P 500®. The history data from 1926 to 1969 is calculated by Ibbotson. The S&P 500® Index is a market capitalization–weighted index of 500 common stocks chosen for market size, liquidity, and industry group representation to represent U.S. equity performance.
Dow Jones US Total Stock Market Index is a float-adjusted market capitalization–weighted index of all equity securities of US headquartered companies with readily available price data.
MSCI EAFE Index is a market capitalization-weighted index that is designed to measure the investable equity market performance for global investors in developed markets, excluding the US & Canada.
MSCI ACWI (All Country World Index) ex USA Index is a market capitalization-weighted index designed to measure the investable equity market performance for global investors of large and mid-cap stocks in developed and emerging markets, excluding the United States.
Bloomberg US Aggregate Bond Index is a broad-based, market-value-weighted benchmark that measures the performance of the investment grade, US dollar denominated, fixed-rate taxable bond market. Sectors in the index include Treasuries, government-related and corporate securities, MBS (agency fixed-rate and hybrid ARM pass-throughs), ABS, and CMBS.
Indexes are unmanaged. It is not possible to invest directly in an index.

More information

Keep in mind that investing involves risk. The value of your investment will fluctuate over time, and you may gain or lose money.

Diversification and asset allocation do not ensure a profit or guarantee against loss.

Generally, among asset classes stocks are more volatile than bonds or short-term instruments and can decline significantly in response to adverse issuer, political, regulatory, market, or economic developments. Although the bond market is also volatile, lower-quality debt securities including leveraged loans generally offer higher yields compared to investment grade securities, but also involve greater risk of default or price changes. Foreign markets can be more volatile than U.S. markets due to increased risks of adverse issuer, political, market or economic developments, all of which are magnified in emerging markets.

Fidelity® Wealth Services provides non-discretionary financial planning and discretionary investment management through one or more Personalized Portfolios accounts for a fee. Advisory services offered by Fidelity Personal and Workplace Advisors LLC (FPWA), a registered investment adviser. Discretionary portfolio management services provided by Strategic Advisers LLC (Strategic Advisers), a registered investment adviser. Brokerage services provided by Fidelity Brokerage Services LLC (FBS), and custodial and related services provided by National Financial Services LLC (NFS), each a member NYSE and SIPC. FPWA, Strategic Advisers, FBS, and NFS are Fidelity Investments companies.

Effective March 31, 2025, Fidelity Personal and Workplace Advisors LLC (FPWA) will merge into Strategic Advisers LLC (Strategic Advisers). Any services provided or benefits received by FPWA as described above will, as of March 31, 2025, be provided and/or received by Strategic Advisers. FPWA and Strategic Advisers are Fidelity Investments companies.

Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street, Smithfield, RI 02917

1031179.6.0

Account holdings

We believe that one of the best ways to achieve your financial goals is through a well-diversified portfolio that reflects your comfort with risk and time horizon. In choosing appropriate holdings for Personalized Portfolios accounts, we evaluate hundreds of investment options. Your account will usually have exposure to a wide range of securities of different market capitalizations, sectors, and investment styles.



Your Personalized Portfolios accounts may be comprised of:

Mutual funds

Managed by either Fidelity or non-Fidelity managers, which may also include funds that are exclusive to Fidelity® Wealth Services clients.

Exchanged traded funds (ETFs)

Offered by either Fidelity or other firms.

Individual stocks

Through separately managed account (SMA) sleeves.1 We offer both direct indexing and actively managed SMA sleeves for accounts with taxable registrations.

  • See sample account holdings

    Sample portfolio2 for a client with a Growth with Income investment strategy (60% stocks/40% bonds), using tax-smart investing strategies (but not Household Tax-Smart Strategies), a Total Return approach, a Blended investment universe, investing in municipal securities, and includes SMAs.


    Fund Percentage
    Strategic Advisers Municipal Bond Fund 26.5%
    Strategic Advisers Tax-Managed U.S. Large Cap SMA* 17.2%
    Strategic Advisers Equity Value SMA* 10.4%
    Strategic Advisers Equity Growth SMA* 10.4%
    Fidelity Strategic Advisers Blended International Equity SMA‡ 8.0%
    Strategic Advisers Tax-Sensitive Short Duration Fund 6.0%
    iShares Core MSCI EAFE ETF 3.1%
    iShares Core S&P Small-Cap ETF 2.4%
    Hartford Schroders Emerging Mkts Eq Y 2.1%
    Vanguard Real Estate ETF 2.0%
    Fidelity Advisor Focused Emerging Markets Fund - Class Z 1.6%
    JPMorgan Mid Cap Value I 1.5%
    Janus Henderson Enterprise T 1.5%
    Fidelity Government Cash Reserves 1.5%
    Fidelity Emerging Markets Fund 1.4%
    DFA Emerging Markets Core Equity I 1.3%
    American Funds Europacific Growth F2 0.9%
    WCM Focused International Growth Inv 0.9%
    Causeway Emerging Markets Investor 0.7%
    Victory Trivalent International Sm-Cp I 0.5%
    Total 100%

    FOR ILLUSTRATIVE PURPOSES ONLY

What is a separately managed account (SMA) sleeve?

An SMA sleeve is a portfolio of individual stocks held within an eligible taxable Personalized Portfolios account that can help enhance your after-tax returns. You can own one or more stock SMA sleeves within your Personalized Portfolios account instead of a stock mutual fund or ETF. Investing in SMA sleeves allows for:


  • Direct ownership of stocks gives you the ability to personalize your holdings and can help with capital gains management, which can help add to your portfolio's tax efficiency.
  • Increased potential for tax-loss harvesting3 opportunities, which can be a good way to offset capital gains.
  • If you fund your account with stocks you currently own, it may be possible to build around those holdings, which could reduce the tax impact of building your portfolio.

More information

1. Clients must meet certain eligibility requirements to leverage the benefits of SMAs. Please note that you will be charged an additional fee for any SMAs held in your account. These fees are in addition to the basic advisory fees for Fidelity® Wealth Services. Please refer to your Client Agreement for detailed fee information.
2. The sample portfolio is presented for illustrative purposes only. It is not a recommendation by Fidelity Personal and Workplace Advisors LLC (“FPWA”) of a specific asset allocation that is appropriate for your accounts, and investments currently used in its managed account products may differ significantly from the investments included in this sample portfolio. This sample portfolio should not be construed as an offer to sell, a solicitation of any offer to buy, or a recommendation of any investment strategy or security by FPWA, any other Fidelity Investments company, or any third party. The portfolio recommended to you (and the associated fees) should you choose to enroll in FWS may differ substantially from the sample portfolio and associated fee information. This sample portfolio is not intended to be reflective of your specific goals or circumstances. This baseline portfolio may change over time and may differ considerably based on individual client situations.
*This sample portfolio includes the Strategic Advisers Tax-Managed U.S. Large Cap Separately Managed Account (SMA) sleeve, the Strategic Advisers Equity Value SMA sleeve, and the Strategic Advisers Equity Growth SMA sleeve. Separate SMA fees may apply. These SMA sleeve(s) are not invested in mutual funds. They are separately managed portions of your account, which are made up of individual securities as part of your overall investment portfolio managed by Strategic Advisers LLC.
Please refer to the FWS Program Fundamentals for details.
‡ The SMA sleeve(s) used in the Foreign Stock portion of your account are not invested in mutual funds. They are separately managed portions of your account, which are made up of individual non-U.S. stocks (available typically as American Depository Receipts (ADRs) and may include exchange-traded products (ETPs) and a completion fund). ADRs are traded on U.S. markets and offer investors investment exposure to non-U.S. stocks. A completion fund is a mutual fund designed for use in separately managed accounts and is used to achieve certain exposures across foreign countries/regions where ADRs may not be available or appropriate, at the discretion of Strategic Advisers.

You could lose money by investing in a money market fund. Although the fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the fund is not a bank account and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Fidelity Investments and its affiliates, the fund’s sponsor, is not required to reimburse the fund for losses, and you should not expect that the sponsor will provide financial support to the fund at any time, including during periods of market stress.

Fidelity's government and U.S. Treasury money market funds will not impose a fee upon the sale of your shares.

Before investing in any mutual fund or exchange-traded fund, you should consider its investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus, an offering circular, or, if available, a summary prospectus containing this information. Read it carefully.

3.

Tax-smart (i.e., tax-sensitive) investing techniques (including tax-loss harvesting) are applied in managing certain taxable accounts on a limited basis, at the discretion of the portfolio manager primarily with respect to determining when assets in a client's account should be bought or sold. As the discretionary portfolio manager, Strategic Advisers LLC ("Strategic Advisers") may elect to sell assets in an account at any time. A client may have a gain or loss when assets are sold. There are no guarantees as to the effectiveness of the tax-smart investing techniques applied in serving to reduce or minimize a client's overall tax liabilities, or as to the tax results that may be generated by a given transaction. Strategic Advisers does not currently invest in tax-deferred products, such as variable insurance products, or in tax-managed funds, but may do so in the future if it deems such to be appropriate for a client. Strategic Advisers does not actively manage for alternative minimum taxes; state or local taxes; foreign taxes on non-U.S. investments; federal tax rules applicable to entities; or estate, gift, or generation-skipping transfer taxes. Strategic Advisers relies on information provided by clients in an effort to provide tax-sensitive investment management, and does not offer tax advice. Except where Fidelity Personal Trust Company (FPTC) is serving as trustee, clients are responsible for all tax liabilities arising from transactions in their accounts, for the adequacy and accuracy of any positions taken on tax returns, for the actual filing of tax returns, and for the remittance of tax payments to taxing authorities.​

Keep in mind that investing involves risk. The value of your investment will fluctuate over time, and you may gain or lose money.

Diversification and asset allocation do not ensure a profit or guarantee against loss.

Generally, among asset classes stocks are more volatile than bonds or short-term instruments and can decline significantly in response to adverse issuer, political, regulatory, market, or economic developments. Although the bond market is also volatile, lower-quality debt securities including leveraged loans generally offer higher yields compared to investment grade securities, but also involve greater risk of default or price changes. Foreign markets can be more volatile than U.S. markets due to increased risks of adverse issuer, political, market or economic developments, all of which are magnified in emerging markets.

Fidelity does not provide legal or tax advice. The information herein is general and educational in nature and should not be considered legal or tax advice. Tax laws and regulations are complex and subject to change, which can materially impact investment results. Fidelity cannot guarantee that the information herein is accurate, complete, or timely. Fidelity makes no warranties with regard to such information or results obtained by its use and disclaims any liability arising out of your use of, or any tax position taken in reliance on, such information. Consult an attorney or tax professional regarding your specific situation.
Fidelity® Wealth Services provides non-discretionary financial planning and discretionary investment management through one or more Personalized Portfolios accounts for a fee. Advisory services offered by Fidelity Personal and Workplace Advisors LLC (FPWA), a registered investment adviser. Discretionary portfolio management services provided by Strategic Advisers LLC (Strategic Advisers), a registered investment adviser. Brokerage services provided by Fidelity Brokerage Services LLC (FBS), and custodial and related services provided by National Financial Services LLC (NFS), each a member NYSE and SIPC. FPWA, Strategic Advisers, FBS, and NFS are Fidelity Investments companies.

Effective March 31, 2025, Fidelity Personal and Workplace Advisors LLC (FPWA) will merge into Strategic Advisers LLC (Strategic Advisers). Any services provided or benefits received by FPWA as described above will, as of March 31, 2025, be provided and/or received by Strategic Advisers. FPWA and Strategic Advisers are Fidelity Investments companies.

Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street, Smithfield, RI 02917

1031179.6.0