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Greetings Centex,

You mentioned that FDGFX pretty much mirrors the S&P 500 fund.
Would a Russell 1000 Growth or a Russell 1000 Value be a better choice?


Possibly. You'd have to check those R-squareds as well as what statistic matters more to you since there are competing ideas here:

1) Low co-relation between investments. The idea here is to find a fund that will move rather differently from something you are invested in and so your small-cap value and S & P 500 index likely have this. For example, Fidelity Low-Priced Stock(FLPSX) has an R-squared of 50 with the S & P 500 so while the S & P 500 has had some declines this fund has performed rather differently.

2) Higher returns. This is more tricky since there are various routes one can take to achieve this from concentrating on that best performing sector and rotating as needed to catch shifts in the market OR some may just use lazy portfolios such as a few examples of which are described in http://boards.fool.com/Message.asp?mid=16957242.

On one level I think there should be a question of what kind of spicy returns do you want to see and are you prepared for both kinds? Technology, gold and emerging markets funds are quite spicy in terms of being volitile if that is what you seek from your investments while blah should be expected from bonds in most cases.

Regards,
JB
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