Looking to diversify beyond ESG? The ETFs below have the lowest correlation with ESG — 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 ESG.
Best Diversifiers for ESG
340 ETFs have low correlation with ESG (below 0.3), 61 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 -0.38 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| ProShares Short Bitcoin ETF | -0.44 | -0.36 | -0.38 | 57 | Cryptocurrency | ESG vs BITI | |
| T-REX 2X Inverse MSTR Daily Target ETF | -0.44 | -0.42 | -0.42 | 68 | Inverse Equities, Leveraged Equities | ESG vs MSTZ | |
| Proshares Ultrashort Bitcoin ETF | -0.44 | -0.41 | -0.41 | 52 | Cryptocurrency, Leveraged Cryptocurrency | ESG vs SBIT | |
| Defiance Daily Target 2X Short MSTR ETF | -0.43 | -0.43 | -0.43 | 60 | Inverse Equities | ESG vs SMST | |
| YieldMax Short MSTR Option Income Strategy ETF | -0.41 | -0.44 | -0.44 | 70 | Derivative Income | ESG vs WNTR |
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Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from ESG, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to ESG and solid risk/return profiles. The least correlated is MSCI Inc. (MSCI) (Financial Services) with a 1Y correlation of 0.26, down from 0.61 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| MSCI Inc. | 0.26 | 0.44 | 0.61 | 57 | Financial Services |
Build a portfolio that complements ESG
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