Looking to diversify beyond FAQTX? The mutual funds below have historically moved differently from FAQTX, 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 FAQTX
2 mutual funds have low correlation with FAQTX (below 0.3), 0 of which are negatively correlated. The least correlated is American High-Income Municipal Bond Fund Class F-3 (HIMFX) (High Yield Muni) with a 1Y correlation of 0.29, roughly unchanged from 0.21 over 5 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| American High-Income Municipal Bond Fund Class F-3 | 0.29 | 0.25 | 0.21 | 92 | High Yield Muni | FAQTX vs HIMFX | |
| American High-Income Municipal Bond Fund Class F-2 | 0.29 | 0.25 | 0.21 | 92 | High Yield Muni | FAQTX vs AHMFX | |
| American Funds Tax-Exempt Bond Fund of America Cla... | 0.31 | 0.24 | 0.21 | 77 | Municipal Bonds | FAQTX vs AFTFX | |
| Capital Group California Short-Term Municipal Fund | 0.31 | 0.23 | 0.16 | 70 | Municipal Bonds | FAQTX vs CCSTX | |
| Capital Group California Core Municipal Fund | 0.34 | 0.26 | 0.20 | 56 | Municipal Bonds | FAQTX vs CCCMX |
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