Looking to diversify beyond VWEAX? The mutual funds below have historically moved differently from VWEAX, 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 VWEAX
10 mutual funds have low correlation with VWEAX (below 0.3), 1 of which are negatively correlated. The least correlated is Fairholme Focused Income Fund (FOCIX) (High Yield Bonds) with a 1Y correlation of -0.05, down from 0.27 over 5 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Fairholme Focused Income Fund | -0.05 | 0.16 | 0.27 | 73 | High Yield Bonds | VWEAX vs FOCIX | |
| Cliffwater Corporate Lending Fund Class I Shares | 0.07 | 0.06 | 0.10 | 100 | Bank Loan, High Yield Bonds | VWEAX vs CCLFX | |
| Pioneer ILS Interval Fund | 0.11 | 0.10 | 0.06 | 100 | High Yield Bonds | VWEAX vs XILSX | |
| DFA One Year Fixed Income Portfolio | 0.12 | 0.06 | 0.14 | 100 | Ultrashort Bond | VWEAX vs DFIHX | |
| Vanguard Short-Term Inflation-Protected Securities... | 0.19 | 0.34 | 0.32 | 91 | Inflation-Protected Bonds | VWEAX vs VTAPX |
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Low-Correlation Stock Ideas
The table shows companies with at least $1B in market capitalization, historical correlation data for VWEAX, 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 Cohen & Steers Infrastructure Fund, Inc (UTF) (Financial Services) with a 1Y correlation of 0.22, down from 0.36 over 5 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Cohen & Steers Infrastructure Fund, Inc | 0.22 | 0.31 | 0.36 | 74 | Financial Services | |
| Kinross Gold Corporation | 0.33 | 0.24 | 0.28 | 69 | Basic Materials |
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