Looking to diversify beyond VGAVX? The mutual funds below have historically moved differently from VGAVX, 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 VGAVX
6 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 0.06, roughly unchanged from 0.07 over 5 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| GMO U.S. Treasury Fund | 0.06 | 0.06 | 0.07 | 99 | Government Bonds | VGAVX vs GUSTX | |
| Federated Hermes Adjustable Rate Fund | 0.17 | 0.39 | 0.38 | 99 | Government Bonds | VGAVX vs FEUGX | |
| Vanguard Short-Term Inflation-Protected Securities... | 0.22 | 0.42 | 0.42 | 91 | Inflation-Protected Bonds | VGAVX vs VTAPX | |
| DFA Short-Term Government Portfolio | 0.24 | 0.09 | 0.24 | 99 | Government Bonds | VGAVX vs DFFGX | |
| Davis Government Bond Fund | 0.26 | 0.35 | 0.42 | 88 | Government Bonds | VGAVX vs RFBAX |
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Low-Correlation Stock Ideas
The table shows companies with at least $1B in market capitalization, historical correlation data for VGAVX, 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 The Coca-Cola Company (KO) (Consumer Defensive) with a 1Y correlation of -0.03, down from 0.16 over 5 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| The Coca-Cola Company | -0.03 | 0.09 | 0.16 | 90 | Consumer Defensive | |
| Johnson & Johnson | 0.04 | 0.08 | 0.14 | 97 | Healthcare | |
| Pfizer Inc. | 0.24 | 0.20 | 0.21 | 64 | Healthcare |
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