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
248 ETFs have low correlation with ET (below 0.3), 117 of which are negatively correlated. The least correlated is Schwab Short-Term U.S. Treasury ETF (SCHO) (Government Bonds) with a 1Y correlation of -0.24, 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 | -0.24 | -0.09 | -0.09 | 81 | Government Bonds, Short-Term Bond | ET vs SCHO | |
| Vanguard Tax-Exempt Bond ETF | -0.22 | -0.02 | -0.02 | 76 | Municipal Bonds | ET vs VTEB | |
| JPMorgan Income ETF | -0.21 | 0.06 | — | 94 | Multisector Bonds | ET vs JPIE | |
| Vanguard Short-Term Bond Index Fund ETF Shares | -0.20 | -0.06 | -0.06 | 58 | Short-Term Bond | ET vs BSV | |
| Vanguard Short-Term Tax-Exempt Bond ETF | -0.20 | -0.01 | — | 73 | Municipal Bonds | ET vs VTES |
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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 Coca-Cola European Partners plc (CCEP) (Consumer Defensive) with a 1Y correlation of -0.12, down from 0.18 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Coca-Cola European Partners plc | -0.12 | 0.06 | 0.18 | 53 | Consumer Defensive | |
| HSBC Holdings plc | -0.12 | 0.15 | 0.25 | 90 | Financial Services | |
| Cardinal Health, Inc. | -0.11 | 0.04 | 0.18 | 81 | Healthcare | |
| Dynex Capital, Inc. | -0.10 | 0.19 | 0.28 | 77 | Real Estate | |
| Ford Motor Company | -0.09 | 0.16 | 0.32 | 71 | Consumer Cyclical |
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