Looking to balance out your exposure to FAF? The ETFs below have the lowest correlation with FAF — they tend to move on their own, which can help reduce risk when FAF drops. The stock ideas table highlights individual companies that behave independently from FAF.
Best Diversifiers for FAF
2 ETFs have low correlation with FAF (below 0.3), 0 of which are negatively correlated. The least correlated is Vanguard S&P 500 ETF (VOO) (S&P 500) with a 1Y correlation of 0.24, down from 0.48 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Vanguard S&P 500 ETF | 0.24 | 0.35 | 0.49 | 70 | S&P 500 | FAF vs VOO | |
| State Street SPDR S&P 500 ETF | 0.24 | 0.35 | 0.49 | 70 | S&P 500 | FAF vs SPY | |
| Schwab U.S. Dividend Equity ETF | 0.40 | 0.54 | 0.59 | 80 | Dividend | FAF vs SCHD |
Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from FAF, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to FAF and solid risk/return profiles. The least correlated is Lam Research Corporation (LRCX) (Technology) with a 1Y correlation of 0.12, down from 0.31 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Lam Research Corporation | 0.12 | 0.18 | 0.31 | 98 | Technology | |
| Gilead Sciences, Inc. | 0.17 | 0.23 | 0.25 | 63 | Healthcare |
Build a portfolio that complements FAF
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