Looking to diversify beyond DRIP? The ETFs below have the lowest correlation with DRIP — 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 DRIP.
Best Diversifiers for DRIP
2175 ETFs have low correlation with DRIP (below 0.3), 656 of which are negatively correlated. The least correlated is iShares U.S. Oil & Gas Exploration & Production ETF (IEO) (Energy Equities) with a 1Y correlation of -0.97, roughly unchanged from -0.97 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| iShares U.S. Oil & Gas Exploration & Production ET... | -0.98 | -0.97 | -0.97 | 51 | Energy Equities | DRIP vs IEO | |
| Texas Capital Texas Oil Index ETF | -0.95 | — | — | 54 | Energy Equities | DRIP vs OILT | |
| First Trust Energy AlphaDEX Fund | -0.94 | -0.96 | -0.97 | 72 | Energy Equities | DRIP vs FXN | |
| First Trust Nasdaq Oil & Gas ETF | -0.94 | -0.95 | -0.96 | 54 | Energy Equities | DRIP vs FTXN | |
| Strive U.S. Energy ETF | -0.93 | -0.92 | — | 58 | Energy Equities | DRIP vs DRLL |
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Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from DRIP, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to DRIP and solid risk/return profiles. The least correlated is Chevron Corporation (CVX) (Energy) with a 1Y correlation of -0.76, roughly unchanged from -0.75 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Chevron Corporation | -0.76 | -0.72 | -0.75 | 84 | Energy |
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