Looking to diversify beyond VTWAX? The mutual funds below have historically moved differently from VTWAX, 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 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 -0.06, down from 0.36 over 5 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Fidelity Select Energy Portfolio | -0.06 | 0.22 | 0.36 | 87 | Energy Equities | VTWAX vs FSENX | |
| Vanguard Short-Term Inflation-Protected Securities... | 0.11 | 0.14 | 0.18 | 91 | Inflation-Protected Bonds | VTWAX vs VTAPX | |
| GQG Partners Global Quality Dividend Income Fund | 0.11 | 0.50 | 0.62 | 70 | Quality Factor, Global Equities | VTWAX vs GQFPX | |
| AQR Managed Futures Strategy Fund Class N | 0.17 | 0.09 | -0.09 | 89 | Systematic Trend | VTWAX vs AQMNX | |
| Cohen & Steers Global Infrastructure Fund Class A | 0.25 | 0.43 | 0.58 | 79 | Infrastructure Equities, Global Equities | VTWAX vs CSUAX |
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Low-Correlation Stock Ideas
The table shows companies with at least $1B in market capitalization, historical correlation data for VTWAX, 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 Altria Group, Inc. (MO) (Consumer Defensive) with a 1Y correlation of -0.27, down from 0.12 over 5 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Altria Group, Inc. | -0.27 | -0.02 | 0.12 | 66 | Consumer Defensive | |
| Chubb Limited | -0.23 | 0.06 | 0.25 | 89 | Financial Services | |
| Chevron Corporation | -0.21 | 0.08 | 0.24 | 80 | Energy | |
| The Coca-Cola Company | -0.20 | 0.04 | 0.21 | 90 | Consumer Defensive | |
| Duke Energy Corporation | -0.19 | -0.01 | 0.10 | 56 | Utilities |
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