Looking to diversify beyond VWALX? The mutual funds below have the lowest correlation with VWALX — 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 VWALX.
Best Diversifiers for VWALX
18 mutual funds have low correlation with VWALX (below 0.3), 1 of which are negatively correlated. The least correlated is DFA California Municipal Real Return Portfolio (DCARX) (Municipal Bonds) with a 1Y correlation of -0.02, down from 0.21 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| DFA California Municipal Real Return Portfolio | -0.02 | 0.16 | 0.21 | 95 | Municipal Bonds | VWALX vs DCARX | |
| DFA Municipal Real Return Portfolio | 0.03 | 0.19 | 0.22 | 95 | Municipal Bonds | VWALX vs DMREX | |
| Vanguard Information Technology Index Fund Admiral... | 0.12 | 0.09 | 0.10 | 55 | Technology Equities | VWALX vs VITAX | |
| DFA Short Term Municipal Bond Portfolio | 0.14 | 0.26 | 0.35 | 100 | Municipal Bonds | VWALX vs DFSMX | |
| Vanguard Ultra-Short-Term Bond Fund Investor Share... | 0.18 | 0.31 | 0.34 | 99 | Total Bond Market | VWALX vs VUBFX |
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Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from VWALX, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to VWALX and solid risk/return profiles. The least correlated is Berkshire Hathaway Inc. (BRK-B) (Financial Services) with a 1Y correlation of 0.03, roughly unchanged from 0.00 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Berkshire Hathaway Inc. | 0.03 | 0.02 | 0.00 | 53 | Financial Services |
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