Looking to balance out your exposure to ET? The ETFs below have the lowest correlation with ET — they tend to move on their own, which can help reduce risk when ET drops. The stock ideas table highlights individual companies that behave independently from ET.
Best Diversifiers for ET
278 ETFs have low correlation with ET (below 0.3), 128 of which are negatively correlated. The least correlated is Schwab Short-Term U.S. Treasury ETF (SCHO) (Government Bonds) with a 1Y correlation of -0.25, down from -0.09 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Schwab Short-Term U.S. Treasury ETF | -0.25 | -0.09 | -0.09 | 81 | Government Bonds, Short-Term Bond | ET vs SCHO | |
| Vanguard Tax-Exempt Bond ETF | -0.22 | -0.02 | -0.02 | 72 | Municipal Bonds | ET vs VTEB | |
| JPMorgan Income ETF | -0.21 | 0.07 | — | 93 | Multisector Bonds | ET vs JPIE | |
| Vanguard Short-Term Corporate Bond ETF | -0.21 | 0.00 | 0.03 | 74 | Corporate Bonds | ET vs VCSH | |
| iShares 0-5 Year Investment Grade Corporate Bond E... | -0.20 | 0.01 | 0.02 | 88 | Corporate Bonds | ET vs SLQD |
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Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from ET, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to ET and solid risk/return profiles. The least correlated is HSBC Holdings plc (HSBC) (Financial Services) with a 1Y correlation of -0.12, down from 0.25 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| HSBC Holdings plc | -0.12 | 0.16 | 0.25 | 90 | Financial Services | |
| Northern Dynasty Minerals Ltd. | -0.09 | 0.04 | 0.12 | 65 | Basic Materials | |
| Deluxe Corporation | -0.09 | 0.19 | 0.28 | 82 | Communication Services | |
| Ford Motor Company | -0.09 | 0.16 | 0.32 | 82 | Consumer Cyclical | |
| Centrus Energy Corp. | -0.09 | 0.18 | 0.26 | 55 | Energy |
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