Looking to diversify beyond VFIAX? The mutual funds below have historically moved differently from VFIAX, which may reduce portfolio volatility when combined in a suitable allocation. The stock ideas table highlights individual companies with the same low-correlation characteristics. Correlation can change and does not guarantee that one asset will rise when another falls.
Best Diversifiers for VFIAX
47 mutual funds have low correlation with VFIAX (below 0.3), 6 of which are negatively correlated. The least correlated is Vanguard Energy Index Fund Admiral Shares (VENAX) (Energy Equities) with a 1Y correlation of -0.12, down from 0.30 over 5 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Vanguard Energy Index Fund Admiral Shares | -0.12 | 0.15 | 0.30 | 71 | Energy Equities | VFIAX vs VENAX | |
| Invesco Energy Fund | -0.10 | 0.15 | 0.30 | 71 | Energy Equities | VFIAX vs FSTEX | |
| Fidelity Select Energy Portfolio | -0.08 | 0.18 | 0.32 | 88 | Energy Equities | VFIAX vs FSENX | |
| Vanguard Energy Opportunities Fund Admiral Shares | -0.01 | 0.23 | 0.39 | 90 | Energy Equities | VFIAX vs VGELX | |
| Vanguard Energy Opportunities Fund Investor Shares | -0.01 | 0.23 | 0.39 | 90 | Energy Equities | VFIAX vs VGENX |
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Low-Correlation Stock Ideas
The table shows companies with at least $1B in market capitalization, historical correlation data for VFIAX, and a Risk / Return Rank of 50 or higher. Treat them as research candidates rather than evidence that they will offset a future decline. The least correlated is Altria Group, Inc. (MO) (Consumer Defensive) with a 1Y correlation of -0.27, down from 0.11 over 5 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Altria Group, Inc. | -0.27 | -0.03 | 0.11 | 64 | Consumer Defensive | |
| Chevron Corporation | -0.23 | 0.05 | 0.22 | 76 | Energy | |
| Exxon Mobil Corporation | -0.21 | 0.02 | 0.19 | 85 | Energy | |
| Occidental Petroleum Corporation | -0.20 | 0.06 | 0.20 | 68 | Energy | |
| The Coca-Cola Company | -0.20 | 0.03 | 0.23 | 86 | Consumer Defensive |
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