Looking to diversify beyond VFFSX? The mutual funds below have the lowest correlation with VFFSX — 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 VFFSX.
Best Diversifiers for VFFSX
4 mutual funds have low correlation with VFFSX (below 0.3), 2 of which are negatively correlated. The least correlated is Fidelity Select Energy Portfolio (FSENX) (Energy Equities) with a 1Y correlation of -0.04, down from 0.34 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Fidelity Select Energy Portfolio | -0.04 | 0.21 | 0.34 | 77 | Energy Equities | VFFSX vs FSENX | |
| Vanguard Short-Term Inflation-Protected Securities... | -0.01 | 0.09 | 0.15 | 94 | Inflation-Protected Bonds | VFFSX vs VTAPX | |
| Goldman Sachs Strategic Volatility Premium Fund | 0.25 | 0.13 | 0.12 | 71 | Large Cap Blend Equities | VFFSX vs SVPFX | |
| Fidelity Floating Rate High Income Fund | 0.28 | 0.31 | 0.33 | 91 | Bank Loan | VFFSX vs FFRHX | |
| Federated Hermes MDT All Cap Core Fund | 0.30 | 0.61 | 0.79 | 52 | Large Cap Blend Equities | VFFSX vs QIACX |
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Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from VFFSX, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to VFFSX and solid risk/return profiles. The least correlated is Altria Group, Inc. (MO) (Consumer Defensive) with a 1Y correlation of -0.19, down from 0.13 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Altria Group, Inc. | -0.19 | 0.02 | 0.13 | 73 | Consumer Defensive | |
| Exxon Mobil Corporation | -0.15 | 0.06 | 0.19 | 86 | Energy | |
| Chevron Corporation | -0.12 | 0.08 | 0.22 | 84 | Energy | |
| Duke Energy Corporation | -0.12 | 0.00 | 0.12 | 57 | Utilities | |
| ConocoPhillips Company | -0.11 | 0.09 | 0.21 | 78 | Energy |
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