Looking to diversify beyond VCMDX? The mutual funds below have the lowest correlation with VCMDX — 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 VCMDX.
Best Diversifiers for VCMDX
28 mutual funds have low correlation with VCMDX (below 0.3), 5 of which are negatively correlated. The least correlated is Vanguard Short-Term Investment-Grade Fund Admiral Shares (VFSUX) (Total Bond Market) with a 1Y correlation of -0.17, down from 0.06 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Vanguard Short-Term Investment-Grade Fund Admiral ... | -0.17 | 0.01 | 0.06 | 68 | Total Bond Market | VCMDX vs VFSUX | |
| Vanguard Short-Term Treasury Fund Admiral Shares | -0.16 | -0.03 | 0.03 | 51 | Government Bonds | VCMDX vs VFIRX | |
| DFA U.S. Micro Cap Portfolio | -0.02 | 0.09 | 0.18 | 78 | Small Cap Blend Equities | VCMDX vs DFSCX | |
| Vanguard Market Neutral Fund Investor Shares | -0.02 | -0.08 | 0.03 | 95 | Long-Short | VCMDX vs VMNFX | |
| DFA U.S. Large Company Portfolio | -0.01 | 0.09 | 0.17 | 68 | Large Cap Blend Equities | VCMDX vs DFUSX |
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Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from VCMDX, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to VCMDX and solid risk/return profiles. The least correlated is NVIDIA Corporation (NVDA) (Technology) with a 1Y correlation of 0.04, roughly unchanged from 0.11 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| NVIDIA Corporation | 0.04 | 0.07 | 0.11 | 65 | Technology | |
| Royal Gold, Inc. | 0.24 | 0.32 | 0.30 | 60 | Basic Materials |
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