Looking to diversify beyond VFWAX? The mutual funds below have historically moved differently from VFWAX, 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 VFWAX
5 mutual funds have low correlation with VFWAX (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 0.35 over 5 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Fidelity Select Energy Portfolio | -0.03 | 0.21 | 0.35 | 87 | Energy Equities | VFWAX vs FSENX | |
| Vanguard Short-Term Inflation-Protected Securities... | 0.14 | 0.17 | 0.19 | 91 | Inflation-Protected Bonds | VFWAX vs VTAPX | |
| Vanguard Limited-Term Tax-Exempt Fund Investor Sha... | 0.21 | 0.15 | 0.15 | 60 | Municipal Bonds | VFWAX vs VMLTX | |
| Fidelity Floating Rate High Income Fund | 0.23 | 0.26 | 0.34 | 93 | Bank Loan | VFWAX vs FFRHX | |
| Vanguard Intermediate-Term Tax-Exempt Fund Admiral... | 0.27 | 0.18 | 0.16 | 59 | Municipal Bonds | VFWAX vs VWIUX |
To view more results, upgrade your current subscription plan.
Low-Correlation Stock Ideas
The table shows companies with at least $1B in market capitalization, historical correlation data for VFWAX, 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 Altria Group, Inc. (MO) (Consumer Defensive) with a 1Y correlation of -0.25, down from 0.11 over 5 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Altria Group, Inc. | -0.25 | -0.00 | 0.11 | 66 | Consumer Defensive | |
| Chubb Limited | -0.22 | 0.05 | 0.22 | 87 | Financial Services | |
| ConocoPhillips Company | -0.18 | 0.05 | 0.22 | 73 | Energy | |
| Duke Energy Corporation | -0.17 | 0.01 | 0.11 | 52 | Utilities | |
| Occidental Petroleum Corporation | -0.16 | 0.09 | 0.25 | 68 | Energy |
To view more results, upgrade your current subscription plan.
Build a portfolio that complements VFWAX
Add VFWAX to the Diversification Analyzer to see how it overlaps with your other holdings and which assets balance it best.
Analyze a portfolio with VFWAX