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American Funds The Bond Fund of America (ABNDX) Diversifiers

Mutual Fund · Currency in USD · Last updated Aug 1, 2026
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The investment seeks to provide as high a level of current income as is consistent with the preservation of capital. The fund invests at least 80% of its assets in bonds and other debt securities, which may be represented by other investment instruments, including derivatives. It invests at least 60% of its assets in debt securities rated A3 or better or A- or better by Nationally Recognized Statistical Ratings Organizations designated by the fund’s investment adviser, or in debt securities that are unrated but determined to be of equivalent quality by the fund’s investment adviser, including U.S. government securities, money market instruments or cash.

Looking to diversify beyond ABNDX? The mutual funds below have historically moved differently from ABNDX, which may reduce portfolio volatility when combined in a suitable allocation. The stock ideas table highlights individual companies with the same low-correlation characteristics. Correlation can change and does not guarantee that one asset will rise when another falls.

Best Diversifiers for ABNDX

4 mutual funds have low correlation with ABNDX (below 0.3), 0 of which are negatively correlated. The least correlated is Fidelity Series Floating Rate High Income Fund (FFHCX) (High Yield Bonds) with a 1Y correlation of 0.16, roughly unchanged from 0.15 over 5 years.

How candidates are selected
SymbolNameCorrelation 1YCorrelation 3YCorrelation 5YRisk / Return RankCategoryCompare
FFHCX
Fidelity Series Floating Rate High Income Fund0.160.120.15
96
High Yield BondsABNDX vs FFHCX
FOCPX
Fidelity OTC Portfolio0.220.100.12
76
Large Cap Growth EquitiesABNDX vs FOCPX
NEWFX
American Funds New World Fund0.250.180.16
53
Emerging Markets EquitiesABNDX vs NEWFX
ANEFX
American Funds The New Economy Fund Class A0.270.160.15
72
Global Equities, Actively ManagedABNDX vs ANEFX
FXAIX
Fidelity 500 Index Fund0.310.200.16
64
S&P 500ABNDX vs FXAIX
See all 24 diversifiers for ABNDX

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Low-Correlation Stock Ideas

The table shows companies with at least $1B in market capitalization, historical correlation data for ABNDX, and a Risk / Return Rank of 50 or higher. Treat them as research candidates rather than evidence that they will offset a future decline. The least correlated is Alphabet Inc. Class A (GOOGL) (Communication Services) with a 1Y correlation of 0.28, up from 0.11 over 5 years.

How candidates are selected
SymbolNameCorrelation 1YCorrelation 3YCorrelation 5YRisk / Return RankSector
GOOGL
Alphabet Inc. Class A0.280.110.11
95
Communication Services

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