Looking to diversify beyond LTFIX? The mutual funds below have historically moved differently from LTFIX, 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 LTFIX
3 mutual funds have low correlation with LTFIX (below 0.3), 0 of which are negatively correlated. The least correlated is Principal Tax-Exempt Bond Fund (PTEAX) (Municipal Bonds) with a 1Y correlation of 0.21, roughly unchanged from 0.14 over 5 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Principal Tax-Exempt Bond Fund | 0.21 | 0.17 | 0.14 | 70 | Municipal Bonds | LTFIX vs PTEAX | |
| Principal Opportunistic Municipal Fund | 0.26 | 0.17 | 0.14 | 91 | High Yield Muni | LTFIX vs PMOAX | |
| Principal California Municipal Fund | 0.30 | 0.20 | 0.15 | 71 | Municipal Bonds | LTFIX vs SRCMX | |
| Principal Short-Term Income Fund | 0.36 | 0.20 | 0.17 | 89 | Short-Term Bond | LTFIX vs SRHQX | |
| Principal Diversified Select Real Asset Fund | 0.46 | 0.64 | 0.72 | 97 | Global Allocation | LTFIX vs PDSYX |
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