Looking to diversify beyond VWALX? The mutual funds below have historically moved differently from VWALX, 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 VWALX
16 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.
How candidates are selected| 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 | 91 | Municipal Bonds | VWALX vs DCARX | |
| DFA Municipal Real Return Portfolio | 0.01 | 0.19 | 0.23 | 94 | Municipal Bonds | VWALX vs DMREX | |
| DFA Short Term Municipal Bond Portfolio | 0.17 | 0.26 | 0.36 | 100 | Municipal Bonds | VWALX vs DFSMX | |
| Vanguard Ultra-Short-Term Bond Fund Investor Share... | 0.20 | 0.31 | 0.33 | 99 | Total Bond Market | VWALX vs VUBFX | |
| abrdn Ultra Short Municipal Income Fund | 0.21 | 0.28 | 0.28 | 100 | Municipal Bonds | VWALX vs ATOIX |
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Low-Correlation Stock Ideas
The table shows companies with at least $1B in market capitalization, historical correlation data for VWALX, 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 Berkshire Hathaway Inc. (BRK-B) (Financial Services) with a 1Y correlation of 0.08, roughly unchanged from 0.01 over 5 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Berkshire Hathaway Inc. | 0.08 | 0.03 | 0.01 | 61 | Financial Services |
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