Someone asks:
Is it okay to have both FXAIX and FNCMX? Fairly new to mutual funds and just trying to figure out everything!
Answers:
Gerry S:
I have both…noticed they moved in different directions a lot last year, so it appears they have some negative correlation. Don’t worry if there is some overlap, as that is almost inevitable once you have several funds.
Andrew G:
There’s some considerable overlap because many of the NASDAQ stocks are in the S&P 500. If you’ve actively decided that you want to tilt your portfolio in a tech-heavy way, then this is appropriate.
I’m a total market index guy. For extra return, I would generally recommend value stocks as a tilt rather than a sector. I think tech stocks are sufficient fly recommended in the broader index.
Phillip P:
I’m in the process of rebalancing, doing a little bit of portfolio cleaning. I have FNCMX (Nasdaq Index Fund), and am thinking of switching this one to FOCPX to get more of an aggressive growth type fund. I like the fact that FOCPX also has weights in smaller companies and it has a great track record.
Kevin L:
FNCMX has much lower fees because it is an index fund that mirrors the Nasdaq Composite Index. These two will have a ton of overlap with Nasdaq weighing heavier in the technology sector. Both are large cap growth funds with comparable track records. You can’t go wrong with either.
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Diego
Diego, a seasoned financial analyst in New York, brings a decade of expertise to guiding financial decisions. As a blogger for UseFidelity.com, he simplifies finance, offering insights on Fidelity Investments. Beyond numbers, he explores NYC's culture and enjoys capturing moments through his photography.
