Hi JMP
>>>>
So if you decide to diversify over 5 funds, you should choose each fund so that all 5 have relatively low correlations between them but that each of the 5 is comprised of components that are highly correlated.<<<<
What Aptus is trying to say and what I found confusing until this line is that.
Instead of AIMing just SPY you could AIM 5 segments of the market separately. You want those 5 segments to be UNcorrelated (move in different directions. Within each of those funds you want the stocks they hold to be HIGHLY correlated (the stock in each fund should move together, probably be in the same industry)
If you don't have a lot of money in the account now but will be adding money over time, decide on what funds you want the account to EVENTUALLY own and start a new AIM account in each one over time.
Diversify by either STYLE (large, small, foreign, REIT, Bond) or by industry.
Toofuzzy