Looking to diversify beyond VFIDX? The mutual funds below have historically moved differently from VFIDX, 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 VFIDX
3 mutual funds have low correlation with VFIDX (below 0.3), 1 of which are negatively correlated. The least correlated is Vanguard Commodity Strategy Fund Admiral Shares (VCMDX) (Commodities) with a 1Y correlation of -0.24, down from 0.05 over 5 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Vanguard Commodity Strategy Fund Admiral Shares | -0.24 | -0.02 | 0.05 | 68 | Commodities | VFIDX vs VCMDX | |
| JPMorgan Strategic Income Opportunities Fund Class... | 0.23 | -0.18 | -0.26 | 99 | Total Bond Market | VFIDX vs JSOSX | |
| Vanguard Ultra-Short-Term Bond Fund Investor Share... | 0.29 | 0.44 | 0.52 | 99 | Total Bond Market | VFIDX vs VUBFX | |
| Fidelity Flex Conservative Income Bond Fund | 0.32 | 0.32 | 0.32 | 100 | Total Bond Market | VFIDX vs FJTDX | |
| Fidelity Conservative Income Bond Institutional Cl... | 0.35 | 0.39 | 0.35 | 100 | Ultrashort Bond | VFIDX vs FCNVX |
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Low-Correlation Stock Ideas
The table shows companies with at least $1B in market capitalization, historical correlation data for VFIDX, 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 NVIDIA Corporation (NVDA) (Technology) with a 1Y correlation of 0.05, roughly unchanged from 0.09 over 5 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| NVIDIA Corporation | 0.05 | 0.04 | 0.09 | 56 | Technology | |
| Apple Inc | 0.22 | 0.19 | 0.17 | 89 | Technology | |
| Alphabet Inc. Class A | 0.33 | 0.13 | 0.15 | 95 | Communication Services |
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