These two funds are strongly correlated ---my fund newsletter's web page says 100% correlation, whereas Small Cap Extended Index (to pick one example) has a correlation of 2% with either of these funds.
Correlation does not measure the magnitude of the fluctuations, but only the direction. The same newsletter measures the "risk" (magnitude of fluctuations) as 1.00 for FXAIX (obviously, since they define 1 as the risk of the S&P), and 1.01 for FSKAX.
In short, they are the same. If the words "greater diversification" make you sleep better at night, go for FSKAX; but there is no difference here of any consequence.
Correlation does not measure the magnitude of the fluctuations, but only the direction. The same newsletter measures the "risk" (magnitude of fluctuations) as 1.00 for FXAIX (obviously, since they define 1 as the risk of the S&P), and 1.01 for FSKAX.
In short, they are the same. If the words "greater diversification" make you sleep better at night, go for FSKAX; but there is no difference here of any consequence.
Statistics: Posted by Chuckles960 — Wed Mar 06, 2024 4:07 pm — Replies 6 — Views 467