Looking to diversify beyond BCI? The ETFs below have the lowest correlation with BCI — 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 BCI.
Best Diversifiers for BCI
1899 ETFs have low correlation with BCI (below 0.3), 1408 of which are negatively correlated. The least correlated is iShares Yield Optimized Bond ETF (BYLD) (Intermediate Core-Plus Bond) with a 1Y correlation of -0.28, down from 0.03 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| iShares Yield Optimized Bond ETF | -0.28 | -0.03 | 0.03 | 52 | Intermediate Core-Plus Bond | BCI vs BYLD | |
| iShares Investment Grade Corporate Bond Buywrite S... | -0.28 | -0.05 | — | 57 | Corporate Bonds | BCI vs LQDW | |
| Avantis Credit ETF | -0.26 | -0.26 | -0.26 | 53 | Global Bonds | BCI vs AVGB | |
| Ishares J.P. Morgan Broad USD Emerging Markets Bon... | -0.25 | 0.02 | — | 65 | Emerging Markets Bonds | BCI vs BEMB | |
| Invesco Emerging Markets Sovereign Debt ETF | -0.25 | 0.03 | 0.08 | 58 | Emerging Markets Bonds | BCI vs PCY |
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Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from BCI, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to BCI and solid risk/return profiles. The least correlated is Merck & Co., Inc. (MRK) (Healthcare) with a 1Y correlation of -0.05, roughly unchanged from 0.02 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Merck & Co., Inc. | -0.05 | -0.03 | 0.02 | 89 | Healthcare | |
| The Coca-Cola Company | -0.05 | -0.03 | 0.05 | 74 | Consumer Defensive | |
| Broadcom Inc. | -0.05 | 0.07 | 0.12 | 72 | Technology | |
| Johnson & Johnson | -0.02 | -0.03 | 0.00 | 96 | Healthcare | |
| Reaves Utility Income Trust | 0.00 | 0.08 | 0.16 | 79 | Financial Services |
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