Is it okay to have both FXAIX and FNCMX? Fairly new to mutual funds and just trying to figure out everything!
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.
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.
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.
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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