Looking to diversify beyond VFTAX? The mutual funds below have the lowest correlation with VFTAX — 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 VFTAX.
Best Diversifiers for VFTAX
4 mutual funds have low correlation with VFTAX (below 0.3), 2 of which are negatively correlated. The least correlated is Fidelity Select Energy Portfolio (FSENX) (Energy Equities) with a 1Y correlation of -0.11, down from 0.27 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Fidelity Select Energy Portfolio | -0.11 | 0.14 | 0.27 | 79 | Energy Equities | VFTAX vs FSENX | |
| Vanguard Short-Term Inflation-Protected Securities... | -0.02 | 0.08 | 0.14 | 94 | Inflation-Protected Bonds | VFTAX vs VTAPX | |
| Vanguard Short-Term Investment-Grade Fund Admiral ... | 0.26 | 0.16 | 0.16 | 61 | Total Bond Market | VFTAX vs VFSUX | |
| Fidelity Floating Rate High Income Fund | 0.28 | 0.29 | 0.31 | 92 | High Yield Bonds | VFTAX vs FFRHX | |
| BNY Mellon Natural Resources Fund | 0.30 | 0.42 | 0.46 | 89 | Energy Equities | VFTAX vs DLDRX |
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Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from VFTAX, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to VFTAX and solid risk/return profiles. The least correlated is Altria Group, Inc. (MO) (Consumer Defensive) with a 1Y correlation of -0.23, down from 0.09 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Altria Group, Inc. | -0.23 | -0.02 | 0.09 | 69 | Consumer Defensive | |
| Exxon Mobil Corporation | -0.20 | -0.01 | 0.12 | 85 | Energy | |
| Chevron Corporation | -0.18 | 0.02 | 0.15 | 83 | Energy | |
| Duke Energy Corporation | -0.18 | -0.06 | 0.07 | 53 | Utilities | |
| ConocoPhillips Company | -0.17 | 0.02 | 0.14 | 76 | Energy |
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Build a portfolio that complements VFTAX
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