Looking to diversify beyond VTMFX? The mutual funds below have the lowest correlation with VTMFX — 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 VTMFX.
Best Diversifiers for VTMFX
223 mutual funds have low correlation with VTMFX (below 0.3), 5 of which are negatively correlated. The least correlated is SEI Institutional Managed Trust Tax-Free Conservative Income Fund (TFCYX) (Municipal Bonds) with a 1Y correlation of -0.04, roughly unchanged from 0.03 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| SEI Institutional Managed Trust Tax-Free Conservat... | -0.04 | 0.03 | 0.03 | 99 | Municipal Bonds | VTMFX vs TFCYX | |
| DFA Municipal Real Return Portfolio | -0.03 | 0.10 | 0.19 | 94 | Municipal Bonds | VTMFX vs DMREX | |
| Federated Hermes Conservative Municipal Microshort... | -0.02 | 0.04 | 0.04 | 99 | Municipal Bonds | VTMFX vs FHMIX | |
| BlackRock Tactical Opportunities Fund Institutiona... | -0.01 | 0.22 | 0.17 | 81 | Tactical Allocation | VTMFX vs PBAIX | |
| BlackRock Tactical Opportunities Fund | -0.00 | 0.23 | 0.17 | 79 | Macro Trading | VTMFX vs PCBAX |
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Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from VTMFX, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to VTMFX and solid risk/return profiles. The least correlated is Intellia Therapeutics, Inc. (NTLA) (Healthcare) with a 1Y correlation of 0.42, roughly unchanged from 0.50 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Intellia Therapeutics, Inc. | 0.42 | 0.45 | 0.50 | 64 | Healthcare | |
| Amazon.com, Inc | 0.59 | 0.63 | 0.68 | 54 | Consumer Cyclical |
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