Looking to diversify beyond VTSAX? The mutual funds below have the lowest correlation with VTSAX — 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 VTSAX.
Best Diversifiers for VTSAX
47 mutual funds have low correlation with VTSAX (below 0.3), 2 of which are negatively correlated. The least correlated is Vanguard Market Neutral Fund Institutional Shares (VMNIX) (Long-Short) with a 1Y correlation of -0.04, roughly unchanged from -0.04 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Vanguard Market Neutral Fund Institutional Shares | -0.04 | -0.03 | -0.04 | 86 | Long-Short | VTSAX vs VMNIX | |
| Vanguard Market Neutral Fund Investor Shares | -0.03 | -0.03 | -0.04 | 86 | Long-Short | VTSAX vs VMNFX | |
| Vanguard Short-Term Inflation-Protected Securities... | 0.01 | 0.09 | 0.15 | 90 | Inflation-Protected Bonds | VTSAX vs VTSPX | |
| Vanguard Short-Term Inflation-Protected Securities... | 0.04 | 0.10 | 0.15 | 89 | Inflation-Protected Bonds | VTSAX vs VTAPX | |
| Vanguard Energy Fund Investor Shares | 0.05 | 0.28 | 0.43 | 64 | Energy Equities | VTSAX vs VGENX |
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Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from VTSAX, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to VTSAX and solid risk/return profiles. The least correlated is Consolidated Edison, Inc. (ED) (Utilities) with a 1Y correlation of -0.28, down from 0.10 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Consolidated Edison, Inc. | -0.28 | -0.05 | 0.10 | 57 | Utilities | |
| Altria Group, Inc. | -0.20 | 0.01 | 0.14 | 70 | Consumer Defensive | |
| Exxon Mobil Corporation | -0.17 | 0.06 | 0.20 | 69 | Energy | |
| The Coca-Cola Company | -0.15 | 0.05 | 0.21 | 73 | Consumer Defensive | |
| Chevron Corporation | -0.14 | 0.08 | 0.22 | 68 | Energy |
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