Looking to diversify beyond FAAR? The ETFs below have the lowest correlation with FAAR — 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 FAAR.
Best Diversifiers for FAAR
2105 ETFs have low correlation with FAAR (below 0.3), 1887 of which are negatively correlated. The least correlated is Neos Enhanced Income Aggregate Bond ETF (BNDI) (Intermediate Core-Plus Bond) with a 1Y correlation of -0.32, down from -0.12 over 3 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Neos Enhanced Income Aggregate Bond ETF | -0.32 | -0.12 | — | 52 | Intermediate Core-Plus Bond | FAAR vs BNDI | |
| Avantis Credit ETF | -0.31 | — | — | 54 | Global Bonds | FAAR vs AVGB | |
| Frontier Asset Core Bond ETF | -0.30 | -0.24 | -0.24 | 52 | Intermediate Core Bond | FAAR vs FCBD | |
| Angel Oak Ultrashort Income ETF | -0.30 | -0.13 | -0.11 | 99 | Ultrashort Bond | FAAR vs UYLD | |
| Federated Hermes Short Duration Corporate ETF | -0.30 | -0.10 | — | 69 | Short-Term Bond | FAAR vs FCSH |
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Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from FAAR, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to FAAR and solid risk/return profiles. The least correlated is Eli Lilly and Company (LLY) (Healthcare) with a 1Y correlation of -0.19, down from -0.04 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Eli Lilly and Company | -0.19 | -0.04 | -0.04 | 72 | Healthcare | |
| Monster Beverage Corporation | -0.19 | -0.07 | -0.05 | 78 | Consumer Defensive | |
| Alphabet Inc Class A | -0.09 | 0.01 | 0.01 | 96 | Communication Services | |
| Applied Digital Corporation | -0.06 | 0.03 | 0.04 | 94 | Financial Services | |
| Sterling Construction Company, Inc. | -0.04 | -0.03 | 0.02 | 97 | Industrials |
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