Looking to diversify beyond VWSTX? The mutual funds below have the lowest correlation with VWSTX — 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 VWSTX.
Best Diversifiers for VWSTX
18 mutual funds have low correlation with VWSTX (below 0.3), 0 of which are negatively correlated. The least correlated is DFA Municipal Real Return Portfolio (DMREX) (Municipal Bonds) with a 1Y correlation of 0.02, down from 0.26 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| DFA Municipal Real Return Portfolio | 0.02 | 0.20 | 0.26 | 95 | Municipal Bonds | VWSTX vs DMREX | |
| DFA California Municipal Real Return Portfolio | 0.04 | 0.18 | 0.24 | 95 | Municipal Bonds | VWSTX vs DCARX | |
| Vanguard Information Technology Index Fund Admiral... | 0.10 | 0.09 | 0.07 | 53 | Technology Equities | VWSTX vs VITAX | |
| JPMorgan Ultra-Short Municipal Fund | 0.15 | 0.34 | 0.40 | 99 | Municipal Bonds | VWSTX vs USMSX | |
| Vanguard 500 Index Fund Admiral Shares | 0.16 | 0.17 | 0.10 | 65 | S&P 500, Large Cap Blend Equities | VWSTX vs VFIAX |
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Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from VWSTX, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to VWSTX and solid risk/return profiles. The least correlated is Occidental Petroleum Corporation (OXY) (Energy) with a 1Y correlation of -0.22, down from -0.04 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Occidental Petroleum Corporation | -0.22 | -0.04 | -0.04 | 60 | Energy |
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