Looking to diversify beyond VFIFX? The mutual funds below have the lowest correlation with VFIFX — 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 VFIFX.
Best Diversifiers for VFIFX
5 mutual funds have low correlation with VFIFX (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 -0.03, down from 0.36 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Fidelity Select Energy Portfolio | -0.03 | 0.23 | 0.36 | 62 | Energy Equities | VFIFX vs FSENX | |
| Vanguard Energy Opportunities Fund Investor Shares | 0.08 | 0.32 | 0.47 | 78 | Energy Equities | VFIFX vs VGENX | |
| Vanguard Short-Term Inflation-Protected Securities... | 0.11 | 0.16 | 0.19 | 90 | Inflation-Protected Bonds | VFIFX vs VTAPX | |
| Vanguard High-Yield Tax-Exempt Fund Admiral Shares | 0.26 | 0.20 | 0.16 | 86 | High Yield Muni, Municipal Bonds | VFIFX vs VWALX | |
| Fidelity Floating Rate High Income Fund | 0.27 | 0.31 | 0.36 | 93 | Bank Loan | VFIFX vs FFRHX |
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Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from VFIFX, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to VFIFX and solid risk/return profiles. The least correlated is Altria Group, Inc. (MO) (Consumer Defensive) with a 1Y correlation of -0.23, down from 0.14 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Altria Group, Inc. | -0.23 | 0.01 | 0.14 | 81 | Consumer Defensive | |
| Waste Management, Inc. | -0.19 | 0.08 | 0.24 | 53 | Industrials | |
| Chubb Limited | -0.17 | 0.08 | 0.27 | 86 | Financial Services | |
| Exxon Mobil Corporation | -0.16 | 0.06 | 0.23 | 75 | Energy | |
| The Coca-Cola Company | -0.16 | 0.06 | 0.23 | 83 | Consumer Defensive |
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Build a portfolio that complements VFIFX
Add VFIFX to the Diversification Analyzer to see how it overlaps with your other holdings and which assets balance it best.
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