Looking to diversify beyond VSTSX? The mutual funds below have the lowest correlation with VSTSX — 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 VSTSX.
Best Diversifiers for VSTSX
6 mutual funds have low correlation with VSTSX (below 0.3), 1 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 -0.03, down from 0.15 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Vanguard Short-Term Inflation-Protected Securities... | -0.03 | 0.09 | 0.15 | 94 | Inflation-Protected Bonds | VSTSX vs VTSPX | |
| DFA One Year Fixed Income Portfolio | 0.09 | 0.03 | 0.04 | 99 | Ultrashort Bond | VSTSX vs DFIHX | |
| Vanguard Short-Term Investment-Grade Fund Institut... | 0.27 | 0.17 | 0.16 | 64 | Total Bond Market | VSTSX vs VFSIX | |
| Goldman Sachs Strategic Volatility Premium Fund | 0.27 | 0.14 | 0.12 | 70 | Large Cap Blend Equities | VSTSX vs SVPFX | |
| Federated Hermes MDT All Cap Core Fund | 0.29 | 0.62 | 0.80 | 60 | Large Cap Blend Equities | VSTSX vs QIACX |
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