Looking to balance out your exposure to EW? The ETFs below have the lowest correlation with EW — they tend to move on their own, which can help reduce risk when EW drops. The stock ideas table highlights individual companies that behave independently from EW.
Best Diversifiers for EW
4 ETFs have low correlation with EW (below 0.3), 0 of which are negatively correlated. The least correlated is ProShares High Yield-Interest Rate Hedged (HYHG) (High Yield Bonds) with a 1Y correlation of 0.10, down from 0.29 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| ProShares High Yield-Interest Rate Hedged | 0.10 | 0.14 | 0.29 | 57 | High Yield Bonds | EW vs HYHG | |
| Wahed FTSE USA Shariah ETF | 0.25 | 0.35 | 0.49 | 76 | Large Cap Growth Equities | EW vs HLAL | |
| Wahed Dow Jones Islamic World ETF | 0.25 | 0.32 | — | 70 | Foreign Large Cap Equities | EW vs UMMA | |
| SP Funds S&P 500 Sharia Industry Exclusions ETF | 0.28 | 0.35 | 0.49 | 63 | S&P 500 | EW vs SPUS | |
| State Street SPDR S&P 500 ETF | 0.33 | 0.40 | 0.52 | 59 | S&P 500 | EW vs SPY |
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Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from EW, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to EW and solid risk/return profiles. The least correlated is Chevron Corporation (CVX) (Energy) with a 1Y correlation of -0.17, down from 0.03 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Chevron Corporation | -0.17 | -0.05 | 0.03 | 70 | Energy | |
| CVS Health Corporation | 0.02 | 0.08 | 0.15 | 85 | Healthcare | |
| Incyte Corporation | 0.06 | 0.15 | 0.22 | 83 | Healthcare | |
| PepsiCo, Inc. | 0.07 | 0.13 | 0.23 | 61 | Consumer Defensive | |
| UnitedHealth Group Incorporated | 0.09 | 0.08 | 0.21 | 69 | Healthcare |
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Build a portfolio that complements EW
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Analyze a portfolio with EW