Looking to diversify beyond VSMAX? The mutual funds below have the lowest correlation with VSMAX — 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 VSMAX.
Best Diversifiers for VSMAX
7 mutual funds have low correlation with VSMAX (below 0.3), 0 of which are negatively correlated. The least correlated is Vanguard Short-Term Inflation-Protected Securities Index Fund Admiral Shares (VTAPX) (Inflation-Protected Bonds) with a 1Y correlation of 0.07, roughly unchanged from 0.16 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Vanguard Short-Term Inflation-Protected Securities... | 0.07 | 0.13 | 0.16 | 89 | Inflation-Protected Bonds | VSMAX vs VTAPX | |
| Nationwide Amundi Strategic Income Fund | 0.10 | 0.07 | 0.00 | 99 | Multisector Bonds | VSMAX vs NWXHX | |
| Fidelity Floating Rate High Income Fund | 0.20 | 0.28 | 0.33 | 92 | Bank Loan | VSMAX vs FFRHX | |
| Fidelity Short-Term Bond Fund | 0.22 | 0.11 | 0.08 | 59 | Total Bond Market | VSMAX vs FSHBX | |
| AQR Long-Short Equity Fund | 0.26 | 0.31 | 0.26 | 53 | Long-Short | VSMAX vs QLEIX |
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Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from VSMAX, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to VSMAX and solid risk/return profiles. The least correlated is Altria Group, Inc. (MO) (Consumer Defensive) with a 1Y correlation of -0.16, down from 0.17 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Altria Group, Inc. | -0.16 | 0.05 | 0.17 | 70 | Consumer Defensive | |
| The Coca-Cola Company | -0.11 | 0.07 | 0.18 | 74 | Consumer Defensive | |
| Exxon Mobil Corporation | -0.08 | 0.17 | 0.29 | 68 | Energy | |
| Duke Energy Corporation | -0.06 | 0.07 | 0.13 | 62 | Utilities | |
| Walmart Inc. | -0.05 | 0.13 | 0.21 | 69 | Consumer Defensive |
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