Looking to diversify beyond VGAVX? The mutual funds below have the lowest correlation with VGAVX — 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 VGAVX.
Best Diversifiers for VGAVX
5 mutual funds have low correlation with VGAVX (below 0.3), 0 of which are negatively correlated. The least correlated is GMO U.S. Treasury Fund (GUSTX) (Government Bonds) with a 1Y correlation of 0.07, roughly unchanged from 0.06 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| GMO U.S. Treasury Fund | 0.07 | 0.05 | 0.06 | 99 | Government Bonds | VGAVX vs GUSTX | |
| Vanguard Short-Term Inflation-Protected Securities... | 0.16 | 0.41 | 0.40 | 94 | Inflation-Protected Bonds | VGAVX vs VTAPX | |
| DFA Short-Term Government Portfolio | 0.17 | 0.08 | 0.24 | 62 | Government Bonds | VGAVX vs DFFGX | |
| Federated Hermes Adjustable Rate Fund | 0.18 | 0.39 | 0.38 | 99 | Government Bonds | VGAVX vs FEUGX | |
| Davis Government Bond Fund | 0.26 | 0.36 | 0.42 | 69 | Government Bonds | VGAVX vs RFBAX |
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Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from VGAVX, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to VGAVX and solid risk/return profiles. The least correlated is The Coca-Cola Company (KO) (Consumer Defensive) with a 1Y correlation of 0.04, down from 0.16 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| The Coca-Cola Company | 0.04 | 0.11 | 0.16 | 66 | Consumer Defensive | |
| Johnson & Johnson | 0.10 | 0.09 | 0.14 | 92 | Healthcare | |
| Pfizer Inc. | 0.26 | 0.20 | 0.21 | 61 | Healthcare |
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