Looking to diversify beyond VTSAX? The mutual funds below have historically moved differently from VTSAX, 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 VTSAX
58 mutual funds have low correlation with VTSAX (below 0.3), 5 of which are negatively correlated. The least correlated is AQR Style Premia Alternative Fund - Class I (QSPIX) (Multistrategy) with a 1Y correlation of -0.11, roughly unchanged from -0.20 over 5 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| AQR Style Premia Alternative Fund - Class I | -0.11 | -0.13 | -0.20 | 90 | Multistrategy | VTSAX vs QSPIX | |
| Vanguard Energy Index Fund Admiral Shares | -0.11 | 0.18 | 0.31 | 72 | Energy Equities | VTSAX vs VENAX | |
| Fidelity Select Energy Portfolio | -0.07 | 0.21 | 0.34 | 87 | Energy Equities | VTSAX vs FSENX | |
| Vanguard Market Neutral Fund Institutional Shares | -0.03 | -0.03 | -0.05 | 97 | Long-Short | VTSAX vs VMNIX | |
| Vanguard Market Neutral Fund Investor Shares | -0.01 | -0.02 | -0.04 | 97 | Long-Short | VTSAX vs VMNFX |
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Low-Correlation Stock Ideas
The table shows companies with at least $1B in market capitalization, historical correlation data for VTSAX, 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 Consolidated Edison, Inc. (ED) (Utilities) with a 1Y correlation of -0.33, down from 0.08 over 5 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Consolidated Edison, Inc. | -0.33 | -0.08 | 0.08 | 59 | Utilities | |
| Altria Group, Inc. | -0.28 | -0.02 | 0.11 | 66 | Consumer Defensive | |
| Duke Energy Corporation | -0.23 | -0.03 | 0.11 | 56 | Utilities | |
| Chevron Corporation | -0.22 | 0.06 | 0.22 | 80 | Energy | |
| The Coca-Cola Company | -0.22 | 0.03 | 0.19 | 90 | Consumer Defensive |
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