Looking to diversify beyond DRIP? The ETFs below have historically moved differently from DRIP, which may reduce portfolio volatility when combined in a suitable allocation. The stock ideas table highlights individual companies with the same low-correlation characteristics. Correlation can change and does not guarantee that one asset will rise when another falls.
Best Diversifiers for DRIP
2219 ETFs have low correlation with DRIP (below 0.3), 579 of which are negatively correlated. The least correlated is SPDR S&P Oil & Gas Exploration & Production ETF (XOP) (Energy Equities) with a 1Y correlation of -1.00, roughly unchanged from -1.00 over 5 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| SPDR S&P Oil & Gas Exploration & Production ETF | -1.00 | -1.00 | -1.00 | 58 | Energy Equities | DRIP vs XOP | |
| Direxion Daily S&P Oil & Gas Exploration & Product... | -1.00 | -1.00 | -1.00 | 52 | Leveraged Equities | DRIP vs GUSH | |
| Invesco Dynamic Energy Exploration & Production ET... | -0.99 | -0.98 | -0.99 | 55 | Energy Equities | DRIP vs PXE | |
| iShares U.S. Oil & Gas Exploration & Production ET... | -0.98 | -0.98 | -0.97 | 67 | Energy Equities | DRIP vs IEO | |
| Texas Capital Texas Oil Index ETF | -0.95 | — | — | 50 | Energy Equities | DRIP vs OILT |
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Low-Correlation Stock Ideas
The table shows companies with at least $1B in market capitalization, historical correlation data for DRIP, and a Risk / Return Rank of 50 or higher. Treat them as research candidates rather than evidence that they will offset a future decline. The least correlated is Chevron Corporation (CVX) (Energy) with a 1Y correlation of -0.74, roughly unchanged from -0.75 over 5 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Chevron Corporation | -0.74 | -0.72 | -0.75 | 80 | Energy |
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