Looking to balance out your exposure to FAT? The ETFs below have the lowest correlation with FAT — they tend to move on their own, which can help reduce risk when FAT drops. The stock ideas table highlights individual companies that behave independently from FAT.
Best Diversifiers for FAT
2 ETFs have low correlation with FAT (below 0.3), 0 of which are negatively correlated. The least correlated is Schwab U.S. Dividend Equity ETF (SCHD) (Dividend) with a 1Y correlation of 0.11, roughly unchanged from 0.21 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Schwab U.S. Dividend Equity ETF | 0.11 | 0.21 | 0.21 | 80 | Dividend | FAT vs SCHD | |
| Wahed FTSE USA Shariah ETF | 0.21 | 0.19 | 0.21 | 88 | Large Cap Growth Equities | FAT vs HLAL |
Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from FAT, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to FAT and solid risk/return profiles. The least correlated is PepsiCo, Inc. (PEP) (Consumer Defensive) with a 1Y correlation of -0.01, roughly unchanged from 0.08 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| PepsiCo, Inc. | -0.01 | 0.09 | 0.08 | 56 | Consumer Defensive | |
| General Electric Company | 0.01 | 0.09 | 0.14 | 65 | Industrials | |
| Eli Lilly and Company | 0.09 | 0.12 | 0.08 | 72 | Healthcare | |
| Volvo AB ADR | 0.12 | 0.17 | 0.17 | 69 | Industrials | |
| Lumen Technologies, Inc. | 0.13 | 0.19 | 0.15 | 81 | Communication Services |
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