Looking to diversify beyond VFIAX? The mutual funds below have the lowest correlation with VFIAX — 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 VFIAX.
Best Diversifiers for VFIAX
42 mutual funds have low correlation with VFIAX (below 0.3), 3 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 0.33 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Fidelity Select Energy Portfolio | -0.04 | 0.21 | 0.33 | 51 | Energy Equities | VFIAX vs FSENX | |
| Vanguard Market Neutral Fund Institutional Shares | -0.02 | -0.02 | -0.02 | 86 | Long-Short | VFIAX vs VMNIX | |
| Vanguard Market Neutral Fund Investor Shares | -0.01 | -0.01 | -0.02 | 86 | Long-Short | VFIAX vs VMNFX | |
| Vanguard Short-Term Inflation-Protected Securities... | 0.03 | 0.08 | 0.14 | 84 | Inflation-Protected Bonds | VFIAX vs VTSPX | |
| Vanguard Energy Fund Admiral Shares | 0.03 | 0.25 | 0.41 | 66 | Energy Equities | VFIAX vs VGELX |
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Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from VFIAX, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to VFIAX and solid risk/return profiles. The least correlated is Altria Group, Inc. (MO) (Consumer Defensive) with a 1Y correlation of -0.20, down from 0.12 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Altria Group, Inc. | -0.20 | -0.00 | 0.12 | 74 | Consumer Defensive | |
| Exxon Mobil Corporation | -0.18 | 0.04 | 0.21 | 74 | Energy | |
| Chevron Corporation | -0.17 | 0.08 | 0.24 | 70 | Energy | |
| The Coca-Cola Company | -0.15 | 0.05 | 0.22 | 74 | Consumer Defensive | |
| Duke Energy Corporation | -0.13 | 0.00 | 0.11 | 64 | Utilities |
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