Looking to diversify beyond VSTSX? The mutual funds below have historically moved differently from VSTSX, 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 VSTSX
2 mutual funds have low correlation with VSTSX (below 0.3), 0 of which are negatively correlated. The least correlated is Vanguard Short-Term Inflation-Protected Securities Index Fund Institutional Shares (VTSPX) (Inflation-Protected Bonds) with a 1Y correlation of 0.05, roughly unchanged from 0.14 over 5 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Vanguard Short-Term Inflation-Protected Securities... | 0.05 | 0.09 | 0.14 | 92 | Inflation-Protected Bonds | VSTSX vs VTSPX | |
| DFA One Year Fixed Income Portfolio | 0.16 | 0.05 | 0.05 | 100 | Ultrashort Bond | VSTSX vs DFIHX | |
| Vanguard Short-Term Investment-Grade Fund Institut... | 0.33 | 0.18 | 0.17 | 54 | Total Bond Market | VSTSX vs VFSIX | |
| DFA Five Year Global Fixed Income Portfolio | 0.34 | 0.10 | 0.11 | 76 | Global Bonds | VSTSX vs DFGBX | |
| Goldman Sachs Strategic Volatility Premium Fund | 0.36 | 0.16 | 0.14 | 96 | Large Cap Blend Equities | VSTSX vs SVPFX |
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