Looking to diversify beyond VFSAX? The mutual funds below have historically moved differently from VFSAX, 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 VFSAX
2 mutual funds have low correlation with VFSAX (below 0.3), 0 of which are negatively correlated. The least correlated is Vanguard Short-Term Inflation-Protected Securities Index Fund Admiral Shares (VTAPX) (Inflation-Protected Bonds) with a 1Y correlation of 0.11, down from 0.23 over 5 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Vanguard Short-Term Inflation-Protected Securities... | 0.11 | 0.19 | 0.23 | 91 | Inflation-Protected Bonds | VFSAX vs VTAPX | |
| Vanguard Short-Term Treasury Index Fund Admiral Sh... | 0.29 | 0.21 | 0.18 | 92 | Government Bonds | VFSAX vs VSBSX | |
| Vanguard Equity Income Fund Investor Shares | 0.54 | 0.62 | 0.67 | 86 | Dividend, Large Cap Value Equities | VFSAX vs VEIPX | |
| Vanguard Value Index Fund Admiral Shares | 0.57 | 0.63 | 0.68 | 94 | Large Cap Value Equities | VFSAX vs VVIAX | |
| Pear Tree Polaris International Opportunities Fund | 0.58 | 0.66 | 0.71 | 53 | Foreign Small & Mid Cap Equities | VFSAX vs QISIX |
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