Looking to diversify beyond TYG? The mutual funds below have the lowest correlation with TYG — 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 TYG.
Best Diversifiers for TYG
9 mutual funds have low correlation with TYG (below 0.3), 0 of which are negatively correlated. The least correlated is Vanguard High-Yield Corporate Fund Admiral Shares (VWEAX) (High Yield Bonds) with a 1Y correlation of 0.01, down from 0.29 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Vanguard High-Yield Corporate Fund Admiral Shares | 0.01 | 0.25 | 0.29 | 70 | High Yield Bonds | TYG vs VWEAX | |
| Northern Income Equity Fund | 0.05 | 0.32 | 0.45 | 77 | Large Cap Value Equities | TYG vs NOIEX | |
| Fidelity Total International Index Fund | 0.07 | 0.32 | 0.43 | 55 | Foreign Large Cap Equities | TYG vs FTIHX | |
| Vanguard Small-Cap Index Fund Institutional Shares | 0.09 | 0.39 | 0.51 | 51 | Small Cap Blend Equities | TYG vs VSCIX | |
| Fidelity Stock Selector Large Cap Value Fund | 0.10 | 0.42 | 0.55 | 79 | Large Cap Value Equities | TYG vs FSLVX |
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Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from TYG, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to TYG and solid risk/return profiles. The least correlated is Annaly Capital Management, Inc. (NLY) (Real Estate) with a 1Y correlation of -0.01, down from 0.39 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Annaly Capital Management, Inc. | -0.01 | 0.28 | 0.39 | 83 | Real Estate | |
| Dynex Capital, Inc. | 0.00 | 0.23 | 0.34 | 73 | Real Estate | |
| AGNC Investment Corp. | 0.01 | 0.26 | 0.36 | 83 | Real Estate | |
| Trinity Capital Inc. | 0.07 | 0.29 | 0.32 | 90 | Financial Services | |
| AGNC Investment Corp. | 0.09 | 0.08 | 0.19 | 93 | Real Estate |
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Build a portfolio that complements TYG
Add TYG to the Diversification Analyzer to see how it overlaps with your other holdings and which assets balance it best.
Analyze a portfolio with TYG