Looking to diversify beyond VTSMX? The mutual funds below have the lowest correlation with VTSMX — 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 VTSMX.
Best Diversifiers for VTSMX
1 mutual funds have low correlation with VTSMX (below 0.3), 0 of which are negatively correlated. The least correlated is AQR Managed Futures Strategy Fund (AQMIX) (Systematic Trend) with a 1Y correlation of 0.13, up from -0.08 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| AQR Managed Futures Strategy Fund | 0.13 | 0.06 | -0.08 | 92 | Systematic Trend | VTSMX vs AQMIX | |
| Goldman Sachs Strategic Volatility Premium Fund | 0.33 | 0.15 | 0.13 | 70 | Large Cap Blend Equities | VTSMX vs SVPFX | |
| AQR Long-Short Equity Fund | 0.43 | 0.43 | 0.31 | 57 | Long-Short | VTSMX vs QLEIX | |
| AlphaSimplex Managed Futures Strategy Fund Class A | 0.44 | 0.33 | 0.16 | 63 | Systematic Trend | VTSMX vs AMFAX | |
| North Square Preferred and Income Securities Fund | 0.52 | 0.37 | 0.43 | 68 | Large Cap Blend Equities | VTSMX vs ORDNX |
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Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from VTSMX, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to VTSMX and solid risk/return profiles. The least correlated is DNP Select Income Fund Inc. (DNP) (Financial Services) with a 1Y correlation of 0.24, down from 0.36 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| DNP Select Income Fund Inc. | 0.24 | 0.28 | 0.36 | 88 | Financial Services | |
| Franco-Nevada Corporation | 0.34 | 0.28 | 0.29 | 64 | Basic Materials |
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