Looking to balance out your exposure to DD? The ETFs below have the lowest correlation with DD — they tend to move on their own, which can help reduce risk when DD drops. The stock ideas table highlights individual companies that behave independently from DD.
Best Diversifiers for DD
0 ETFs have low correlation with DD (below 0.3), 0 of which are negatively correlated. The least correlated is Freedom 100 Emerging Markets ETF (FRDM) (Emerging Markets Diversified) with a 1Y correlation of 0.48, roughly unchanged from 0.55 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Freedom 100 Emerging Markets ETF | 0.48 | 0.48 | 0.55 | 90 | Emerging Markets Diversified | DD vs FRDM | |
| Vanguard S&P 500 ETF | 0.53 | 0.55 | 0.63 | 60 | S&P 500 | DD vs VOO | |
| Schwab U.S. Large-Cap ETF | 0.56 | 0.56 | 0.64 | 56 | Large Cap Blend Equities | DD vs SCHX | |
| Vanguard Total Stock Market ETF | 0.56 | 0.58 | 0.65 | 60 | Large Cap Blend Equities | DD vs VTI | |
| Vanguard International High Dividend Yield ETF | 0.56 | 0.56 | 0.63 | 69 | Dividend, Foreign Large Cap Equities | DD vs VYMI |
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Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from DD, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to DD and solid risk/return profiles. The least correlated is Cboe Global Markets, Inc. (CBOE) (Financial Services) with a 1Y correlation of -0.11, down from 0.07 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Cboe Global Markets, Inc. | -0.11 | -0.11 | 0.07 | 52 | Financial Services | |
| Consolidated Edison, Inc. | -0.07 | 0.05 | 0.13 | 66 | Utilities | |
| The Coca-Cola Company | -0.04 | 0.11 | 0.22 | 74 | Consumer Defensive | |
| Exxon Mobil Corporation | -0.02 | 0.20 | 0.30 | 74 | Energy | |
| EOG Resources, Inc. | 0.01 | 0.19 | 0.29 | 58 | Energy |
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