Looking to diversify beyond TEI? The mutual funds below have the lowest correlation with TEI — 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 TEI.
Best Diversifiers for TEI
1 mutual funds have low correlation with TEI (below 0.3), 0 of which are negatively correlated. The least correlated is NXG NextGen Infrastructure Income Fund (NXG) (Global Equity Income) with a 1Y correlation of 0.25, roughly unchanged from 0.24 over 3 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| NXG NextGen Infrastructure Income Fund | 0.25 | 0.24 | — | 78 | Global Equity Income | TEI vs NXG | |
| Virtus Stone Harbor Emerg Mkts Corp Dbt | 0.33 | 0.34 | 0.33 | 96 | Emerging Markets Bonds | TEI vs SHCDX | |
| American Beacon Developing World Income Fund Class... | 0.33 | 0.34 | 0.31 | 99 | Emerging Markets Bonds | TEI vs AGEYX | |
| Eaton Vance Emerging Markets Debt Opportunities Fu... | 0.34 | 0.25 | 0.26 | 98 | Emerging Markets Bonds | TEI vs EELDX | |
| American Beacon Frontier Markets Income Fund | 0.34 | 0.34 | 0.31 | 98 | Emerging Markets Bonds | TEI vs AGEPX |
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Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from TEI, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to TEI and solid risk/return profiles. The least correlated is Capital Southwest Corporation (CSWC) (Financial Services) with a 1Y correlation of 0.14, down from 0.28 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Capital Southwest Corporation | 0.14 | 0.25 | 0.28 | 68 | Financial Services | |
| Trinity Capital Inc. | 0.20 | 0.23 | 0.22 | 90 | Financial Services | |
| Cohen & Steers Infrastructure Fund, Inc | 0.26 | 0.31 | 0.31 | 73 | Financial Services | |
| Reaves Utility Income Trust | 0.31 | 0.33 | 0.29 | 74 | Financial Services | |
| BlackRock Capital Allocation Term Trust | 0.39 | 0.33 | 0.34 | 94 | Financial Services |
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Build a portfolio that complements TEI
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