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
45 mutual funds have low correlation with VFIAX (below 0.3), 1 of which are negatively correlated. The least correlated is Fidelity Select Energy Portfolio (FSENX) (Energy Equities) with a 1Y correlation of -0.06, down from 0.33 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Fidelity Select Energy Portfolio | -0.06 | 0.20 | 0.33 | 70 | Energy Equities | VFIAX vs FSENX | |
| Vanguard Market Neutral Fund Institutional Shares | 0.00 | -0.01 | -0.02 | 96 | Long-Short | VFIAX vs VMNIX | |
| Vanguard Energy Fund Admiral Shares | 0.00 | 0.24 | 0.40 | 84 | Energy Equities | VFIAX vs VGELX | |
| Vanguard Energy Opportunities Fund Investor Shares | 0.00 | 0.24 | 0.40 | 83 | Energy Equities | VFIAX vs VGENX | |
| Vanguard Market Neutral Fund Investor Shares | 0.01 | -0.00 | -0.02 | 96 | Long-Short | VFIAX vs VMNFX |
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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 -0.25, down from 0.13 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Altria Group, Inc. | -0.25 | -0.02 | 0.13 | 78 | Consumer Defensive | |
| Chevron Corporation | -0.19 | 0.06 | 0.23 | 73 | Energy | |
| Exxon Mobil Corporation | -0.19 | 0.03 | 0.20 | 76 | Energy | |
| Verizon Communications Inc. | -0.18 | 0.01 | 0.14 | 57 | Communication Services | |
| The Coca-Cola Company | -0.18 | 0.04 | 0.24 | 82 | Consumer Defensive |
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