Looking to diversify beyond EEM? The ETFs below have the lowest correlation with EEM — 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 EEM.
Best Diversifiers for EEM
438 ETFs have low correlation with EEM (below 0.3), 73 of which are negatively correlated. The least correlated is ProShares Short Bitcoin ETF (BITI) (Cryptocurrency) with a 1Y correlation of -0.44, roughly unchanged from -0.35 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| ProShares Short Bitcoin ETF | -0.44 | -0.32 | -0.35 | 52 | Cryptocurrency | EEM vs BITI | |
| Defiance Daily Target 2X Short MSTR ETF | -0.40 | — | — | 63 | Inverse Equities | EEM vs SMST | |
| T-REX 2X Inverse MSTR Daily Target ETF | -0.40 | — | — | 70 | Inverse Equities, Leveraged Equities | EEM vs MSTZ | |
| YieldMax Short MSTR Option Income Strategy ETF | -0.38 | — | — | 73 | Derivative Income | EEM vs WNTR | |
| ProShares UltraShort Yen | -0.24 | -0.17 | -0.16 | 73 | Leveraged Currency | EEM vs YCS |
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Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from EEM, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to EEM and solid risk/return profiles. The least correlated is Waste Management, Inc. (WM) (Industrials) with a 1Y correlation of -0.34, down from 0.03 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Waste Management, Inc. | -0.34 | -0.10 | 0.03 | 56 | Industrials | |
| Chubb Limited | -0.31 | -0.07 | 0.10 | 82 | Financial Services | |
| Altria Group, Inc. | -0.26 | -0.05 | 0.04 | 80 | Consumer Defensive | |
| Duke Energy Corporation | -0.24 | -0.05 | 0.01 | 64 | Utilities | |
| The Coca-Cola Company | -0.17 | 0.00 | 0.10 | 84 | Consumer Defensive |
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Build a portfolio that complements EEM
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