Looking to diversify beyond VTWAX? The mutual funds below have the lowest correlation with VTWAX — 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 VTWAX.
Best Diversifiers for VTWAX
7 mutual funds have low correlation with VTWAX (below 0.3), 1 of which are negatively correlated. The least correlated is Fidelity Select Energy Portfolio (FSENX) (Energy Equities) with a 1Y correlation of -0.02, down from 0.39 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Fidelity Select Energy Portfolio | -0.02 | 0.26 | 0.39 | 79 | Energy Equities | VTWAX vs FSENX | |
| Vanguard Short-Term Inflation-Protected Securities... | 0.02 | 0.13 | 0.17 | 94 | Inflation-Protected Bonds | VTWAX vs VTAPX | |
| AQR Managed Futures Strategy Fund Class N | 0.18 | 0.07 | -0.08 | 89 | Systematic Trend | VTWAX vs AQMNX | |
| JPMorgan Income Fund | 0.27 | 0.27 | 0.33 | 80 | Multisector Bonds | VTWAX vs JMSIX | |
| Fidelity Floating Rate High Income Fund | 0.28 | 0.31 | 0.36 | 92 | High Yield Bonds | VTWAX vs FFRHX |
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Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from VTWAX, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to VTWAX and solid risk/return profiles. The least correlated is Altria Group, Inc. (MO) (Consumer Defensive) with a 1Y correlation of -0.15, down from 0.16 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Altria Group, Inc. | -0.15 | 0.06 | 0.16 | 69 | Consumer Defensive | |
| Exxon Mobil Corporation | -0.14 | 0.09 | 0.22 | 85 | Energy | |
| ConocoPhillips Company | -0.12 | 0.10 | 0.24 | 76 | Energy | |
| Duke Energy Corporation | -0.11 | 0.02 | 0.11 | 53 | Utilities | |
| Chevron Corporation | -0.10 | 0.12 | 0.25 | 83 | Energy |
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Build a portfolio that complements VTWAX
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