Looking to diversify beyond GDO? The mutual funds below have the lowest correlation with GDO — they tend to move on their own, which can help reduce risk when the rest of your portfolio drops. The stock ideas table highlights individual companies that behave independently from GDO.
Best Diversifiers for GDO
3 mutual funds have low correlation with GDO (below 0.3), 1 of which are negatively correlated. The least correlated is Neuberger Berman MLP (NML) (MLPs) with a 1Y correlation of -0.05, down from 0.21 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Neuberger Berman MLP | -0.05 | 0.15 | 0.21 | 57 | MLPs, Energy Equities | GDO vs NML | |
| Franklin Income Fund Class A1 | 0.24 | 0.40 | 0.38 | 83 | Diversified Portfolio | GDO vs FKINX | |
| Vanguard Short-Term Corporate Bond Index Fund Inst... | 0.30 | 0.34 | 0.35 | 83 | Corporate Bonds | GDO vs VSTBX | |
| Virtus Convertible and Income Fund | 0.30 | 0.38 | 0.35 | 78 | Preferred Stock/Convertible Bonds | GDO vs NCV | |
| Vanguard Short-Term Corporate Bond Index Fund Admi... | 0.31 | 0.34 | 0.35 | 81 | Corporate Bonds | GDO vs VSCSX |
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Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from GDO, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to GDO and solid risk/return profiles. The least correlated is Reaves Utility Income Trust (UTG) (Financial Services) with a 1Y correlation of 0.28, roughly unchanged from 0.31 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Reaves Utility Income Trust | 0.28 | 0.31 | 0.31 | 74 | Financial Services | |
| AGNC Investment Corp. | 0.30 | 0.37 | 0.33 | 85 | Real Estate | |
| BlackRock Science and Technology Term Trust | 0.35 | 0.30 | 0.31 | 93 | Financial Services |
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