Looking to diversify beyond VFAIX? The mutual funds below have the lowest correlation with VFAIX — 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 VFAIX.
Best Diversifiers for VFAIX
45 mutual funds have low correlation with VFAIX (below 0.3), 1 of which are negatively correlated. The least correlated is SEI Institutional Managed Trust Tax-Free Conservative Income Fund (TFCYX) (Municipal Bonds) with a 1Y correlation of -0.05, roughly unchanged from 0.01 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| SEI Institutional Managed Trust Tax-Free Conservat... | -0.05 | -0.00 | 0.01 | 99 | Municipal Bonds | VFAIX vs TFCYX | |
| BlackRock Tactical Opportunities Fund Institutiona... | 0.01 | 0.22 | 0.19 | 75 | Tactical Allocation | VFAIX vs PBAIX | |
| BlackRock Tactical Opportunities Fund | 0.02 | 0.22 | 0.20 | 72 | Macro Trading | VFAIX vs PCBAX | |
| iShares Short-Term TIPS Bond Index Fund | 0.04 | 0.08 | 0.07 | 55 | Inflation-Protected Bonds | VFAIX vs BIIPX | |
| BlackRock Short Obligations Fund | 0.09 | 0.03 | 0.01 | 99 | Ultrashort Bond | VFAIX vs BBSOX |
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Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from VFAIX, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to VFAIX and solid risk/return profiles. The least correlated is US Foods Holding Corp. (USFD) (Consumer Defensive) with a 1Y correlation of 0.29, down from 0.55 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| US Foods Holding Corp. | 0.29 | 0.43 | 0.55 | 64 | Consumer Defensive |
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