Looking to diversify beyond VWUAX? The mutual funds below have historically moved differently from VWUAX, 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 VWUAX
7 mutual funds have low correlation with VWUAX (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 -0.20, down from 0.19 over 5 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Fidelity Select Energy Portfolio | -0.20 | 0.06 | 0.19 | 87 | Energy Equities | VWUAX vs FSENX | |
| Vanguard Short-Term Inflation-Protected Securities... | 0.06 | 0.07 | 0.13 | 91 | Inflation-Protected Bonds | VWUAX vs VTAPX | |
| Franklin Federal Tax Free Income Fund | 0.18 | 0.11 | 0.13 | 82 | Municipal Bonds | VWUAX vs FKTIX | |
| Vanguard Ultra-Short-Term Bond Fund Admiral Shares | 0.21 | 0.10 | 0.14 | 100 | Total Bond Market | VWUAX vs VUSFX | |
| Vanguard Short-Term Bond Index Fund Institutional ... | 0.23 | 0.08 | 0.10 | 56 | Total Bond Market | VWUAX vs VBITX |
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Low-Correlation Stock Ideas
The table shows companies with at least $1B in market capitalization, historical correlation data for VWUAX, 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 -0.39, down from -0.04 over 5 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Altria Group, Inc. | -0.39 | -0.16 | -0.04 | 66 | Consumer Defensive | |
| Duke Energy Corporation | -0.38 | -0.21 | -0.05 | 56 | Utilities | |
| The Coca-Cola Company | -0.33 | -0.14 | 0.05 | 90 | Consumer Defensive | |
| Chevron Corporation | -0.32 | -0.09 | 0.05 | 80 | Energy | |
| Occidental Petroleum Corporation | -0.31 | -0.05 | 0.09 | 70 | Energy |
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