Looking to diversify beyond SWTSX? The mutual funds below have the lowest correlation with SWTSX — 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 SWTSX.
Best Diversifiers for SWTSX
6 mutual funds have low correlation with SWTSX (below 0.3), 0 of which are negatively correlated. The least correlated is Vanguard Short-Term Inflation-Protected Securities Index Fund Admiral Shares (VTAPX) (Inflation-Protected Bonds) with a 1Y correlation of 0.04, down from 0.15 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Vanguard Short-Term Inflation-Protected Securities... | 0.04 | 0.10 | 0.15 | 84 | Inflation-Protected Bonds | SWTSX vs VTAPX | |
| Vanguard Energy Fund Admiral Shares | 0.05 | 0.27 | 0.42 | 62 | Energy Equities | SWTSX vs VGELX | |
| Schwab Tax-Free Bond Fund™ | 0.17 | 0.16 | 0.13 | 68 | Municipal Bonds | SWTSX vs SWNTX | |
| Schwab California Tax-Free Bond Fund™ | 0.18 | 0.14 | 0.11 | 66 | Municipal Bonds | SWTSX vs SWCAX | |
| Schwab Opportunistic Municipal Bond Fund | 0.21 | 0.15 | 0.11 | 74 | Municipal Bonds | SWTSX vs SWHYX |
To view more results, upgrade your current subscription plan.
Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from SWTSX, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to SWTSX and solid risk/return profiles. The least correlated is Altria Group, Inc. (MO) (Consumer Defensive) with a 1Y correlation of -0.20, down from 0.13 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Altria Group, Inc. | -0.20 | 0.00 | 0.13 | 72 | Consumer Defensive | |
| Exxon Mobil Corporation | -0.18 | 0.06 | 0.19 | 72 | Energy | |
| The Coca-Cola Company | -0.16 | 0.04 | 0.20 | 74 | Consumer Defensive | |
| Chevron Corporation | -0.13 | 0.08 | 0.22 | 70 | Energy | |
| ConocoPhillips Company | -0.12 | 0.09 | 0.22 | 65 | Energy |
To view more results, upgrade your current subscription plan.
Build a portfolio that complements SWTSX
Add SWTSX to the Diversification Analyzer to see how it overlaps with your other holdings and which assets balance it best.
Analyze a portfolio with SWTSX