Looking to balance out your exposure to DOW? The ETFs below have the lowest correlation with DOW — they tend to move on their own, which can help reduce risk when DOW drops. The stock ideas table highlights individual companies that behave independently from DOW.
Best Diversifiers for DOW
214 ETFs have low correlation with DOW (below 0.3), 19 of which are negatively correlated. The least correlated is Vanguard Tax-Exempt Bond ETF (VTEB) (Municipal Bonds) with a 1Y correlation of -0.11, down from 0.03 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Vanguard Tax-Exempt Bond ETF | -0.11 | 0.04 | 0.03 | 76 | Municipal Bonds | DOW vs VTEB | |
| Schwab Short-Term U.S. Treasury ETF | -0.09 | -0.02 | -0.02 | 81 | Government Bonds, Short-Term Bond | DOW vs SCHO | |
| Vanguard Short-Term Tax-Exempt Bond ETF | -0.07 | 0.01 | — | 73 | Municipal Bonds | DOW vs VTES | |
| Vanguard Short-Term Treasury ETF | -0.07 | -0.01 | -0.03 | 82 | Government Bonds, Short-Term Bond | DOW vs VGSH | |
| Vanguard Ultra-Short Bond ETF | -0.05 | 0.06 | 0.04 | 99 | Ultrashort Bond | DOW vs VUSB |
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Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from DOW, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to DOW and solid risk/return profiles. The least correlated is General Electric Company (GE) (Industrials) with a 1Y correlation of -0.21, down from 0.27 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| General Electric Company | -0.21 | 0.05 | 0.27 | 80 | Industrials | |
| Howmet Aerospace Inc. | -0.14 | 0.08 | 0.29 | 86 | Industrials | |
| Monster Beverage Corporation | -0.11 | 0.09 | 0.19 | 86 | Consumer Defensive | |
| NVIDIA Corporation | -0.10 | 0.04 | 0.17 | 70 | Technology | |
| The TJX Companies, Inc. | -0.09 | 0.11 | 0.25 | 87 | Consumer Cyclical |
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