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
6 mutual funds have low correlation with VFTAX (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 -0.13, down from 0.25 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Fidelity Select Energy Portfolio | -0.13 | 0.12 | 0.25 | 76 | Energy Equities | VFTAX vs FSENX | |
| Vanguard Short-Term Inflation-Protected Securities... | 0.06 | 0.09 | 0.14 | 90 | Inflation-Protected Bonds | VFTAX vs VTAPX | |
| Vanguard Short-Term Treasury Fund Admiral Shares | 0.20 | 0.09 | 0.07 | 63 | Government Bonds | VFTAX vs VFIRX | |
| Vanguard Short-Term Bond Index Fund Admiral Shares | 0.23 | 0.13 | 0.12 | 54 | Total Bond Market | VFTAX vs VBIRX | |
| Fidelity Floating Rate High Income Fund | 0.28 | 0.30 | 0.32 | 93 | Bank Loan | VFTAX vs FFRHX |
To view more results, upgrade your current subscription plan.
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 -0.28, down from 0.06 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Altria Group, Inc. | -0.28 | -0.06 | 0.06 | 80 | Consumer Defensive | |
| Duke Energy Corporation | -0.27 | -0.08 | 0.06 | 64 | Utilities | |
| Chevron Corporation | -0.25 | -0.01 | 0.15 | 74 | Energy | |
| Waste Management, Inc. | -0.23 | 0.07 | 0.22 | 56 | Industrials | |
| The Coca-Cola Company | -0.23 | -0.01 | 0.19 | 84 | Consumer Defensive |
To view more results, upgrade your current subscription plan.
Build a portfolio that complements VFTAX
Add VFTAX to the Diversification Analyzer to see how it overlaps with your other holdings and which assets balance it best.
Analyze a portfolio with VFTAX