Looking to balance out your exposure to AD? The ETFs below have the lowest correlation with AD — they tend to move on their own, which can help reduce risk when AD drops. The stock ideas table highlights individual companies that behave independently from AD.
Best Diversifiers for AD
8 ETFs have low correlation with AD (below 0.3), 0 of which are negatively correlated. The least correlated is iShares Core High Dividend ETF (HDV) (Dividend) with a 1Y correlation of 0.15, down from 0.30 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| iShares Core High Dividend ETF | 0.15 | 0.23 | 0.30 | 64 | Dividend, Large Cap Value Equities | AD vs HDV | |
| First Trust Morningstar Dividend Leaders Index Fun... | 0.16 | 0.27 | 0.34 | 70 | Large Cap Value Equities, Dividend | AD vs FDL | |
| Invesco QQQ ETF | 0.20 | 0.20 | 0.20 | 73 | Nasdaq-100 | AD vs QQQ | |
| Invesco S&P 500 Momentum ETF | 0.21 | 0.21 | 0.24 | 75 | Momentum, S&P 500 | AD vs SPMO | |
| NEOS S&P 500 High Income ETF | 0.23 | 0.24 | — | 71 | Derivative Income, S&P 500 | AD vs SPYI |
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Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from AD, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to AD and solid risk/return profiles. The least correlated is Plains All American Pipeline, L.P. (PAA) (Energy) with a 1Y correlation of -0.02, down from 0.25 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Plains All American Pipeline, L.P. | -0.02 | 0.20 | 0.25 | 87 | Energy | |
| Enterprise Products Partners L.P. | 0.03 | 0.18 | 0.21 | 85 | Energy | |
| Altria Group, Inc. | 0.08 | 0.14 | 0.19 | 69 | Consumer Defensive | |
| Ventas, Inc. | 0.13 | 0.23 | 0.27 | 80 | Real Estate | |
| AbbVie Inc. | 0.13 | 0.05 | 0.11 | 62 | Healthcare |
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Build a portfolio that complements AD
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