Looking to diversify beyond VWUAX? The mutual funds below have the lowest correlation with VWUAX — 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 VWUAX.
Best Diversifiers for VWUAX
5 mutual funds have low correlation with VWUAX (below 0.3), 0 of which are negatively correlated. The least correlated is Vanguard Short-Term Inflation-Protected Securities Index Fund Admiral Shares (VTAPX) (Inflation-Protected Bonds) with a 1Y correlation of 0.02, down from 0.13 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Vanguard Short-Term Inflation-Protected Securities... | 0.02 | 0.07 | 0.13 | 89 | Inflation-Protected Bonds | VWUAX vs VTAPX | |
| Franklin Federal Tax Free Income Fund | 0.15 | 0.11 | 0.12 | 72 | Municipal Bonds | VWUAX vs FKTIX | |
| Vanguard Ultra-Short-Term Bond Fund Admiral Shares | 0.22 | 0.10 | 0.14 | 100 | Total Bond Market | VWUAX vs VUSFX | |
| Vanguard Short-Term Investment-Grade Fund Admiral ... | 0.25 | 0.13 | 0.15 | 60 | Total Bond Market | VWUAX vs VFSUX | |
| Fidelity Floating Rate High Income Fund | 0.28 | 0.27 | 0.29 | 92 | Bank Loan | VWUAX vs FFRHX |
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Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from VWUAX, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to VWUAX and solid risk/return profiles. The least correlated is The Coca-Cola Company (KO) (Consumer Defensive) with a 1Y correlation of -0.29, down from 0.05 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| The Coca-Cola Company | -0.29 | -0.12 | 0.05 | 74 | Consumer Defensive | |
| Exxon Mobil Corporation | -0.29 | -0.08 | 0.05 | 68 | Energy | |
| Duke Energy Corporation | -0.28 | -0.17 | -0.05 | 62 | Utilities | |
| Altria Group, Inc. | -0.28 | -0.13 | -0.03 | 70 | Consumer Defensive | |
| Chevron Corporation | -0.27 | -0.06 | 0.07 | 68 | Energy |
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