Looking to diversify beyond BAB? The ETFs below have the lowest correlation with BAB — 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 BAB.
Best Diversifiers for BAB
1715 ETFs have low correlation with BAB (below 0.3), 100 of which are negatively correlated. The least correlated is ProShares UltraShort Yen (YCS) (Leveraged Currency) with a 1Y correlation of -0.41, roughly unchanged from -0.44 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| ProShares UltraShort Yen | -0.41 | -0.41 | -0.44 | 61 | Leveraged Currency | BAB vs YCS | |
| United States Gasoline Fund LP | -0.31 | -0.15 | -0.11 | 69 | Oil & Gas | BAB vs UGA | |
| Invesco DB Energy Fund | -0.31 | -0.17 | -0.13 | 71 | Oil & Gas | BAB vs DBE | |
| United States Oil Fund LP | -0.30 | -0.17 | -0.13 | 66 | Oil & Gas | BAB vs USO | |
| iShares S&P GSCI Commodity-Indexed Trust | -0.30 | -0.13 | -0.10 | 71 | Commodities | BAB vs GSG |
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Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from BAB, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to BAB and solid risk/return profiles. The least correlated is Nuveen Quality Municipal Income Fund (NAD) (Financial Services) with a 1Y correlation of 0.35, down from 0.46 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Nuveen Quality Municipal Income Fund | 0.35 | 0.49 | 0.46 | 75 | Financial Services | |
| Nuveen AMT-Free Municipal Credit Income Fund | 0.39 | 0.47 | 0.44 | 74 | Financial Services |
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