Looking to diversify beyond FAZ? The ETFs below have the lowest correlation with FAZ — 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 FAZ.
Best Diversifiers for FAZ
1949 ETFs have low correlation with FAZ (below 0.3), 1906 of which are negatively correlated. The least correlated is Invesco KBW Bank ETF (KBWB) (Financials Equities) with a 1Y correlation of -0.86, roughly unchanged from -0.91 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Invesco KBW Bank ETF | -0.86 | -0.86 | -0.91 | 56 | Financials Equities | FAZ vs KBWB | |
| MicroSectors U.S. Big Banks Index 3X Leveraged ETN... | -0.84 | — | — | 57 | Leveraged Equities | FAZ vs BNKU | |
| Amplify CWP Enhanced Dividend Income ETF | -0.80 | -0.80 | -0.82 | 60 | Derivative Income | FAZ vs DIVO | |
| State Street SPDR Dow Jones Industrial Average ETF... | -0.79 | -0.81 | -0.85 | 56 | Large Cap Blend Equities | FAZ vs DIA | |
| Global X Dow 30 Covered Call & Growth ETF | -0.78 | -0.80 | -0.80 | 60 | Derivative Income | FAZ vs DYLG |
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Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from FAZ, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to FAZ and solid risk/return profiles. The least correlated is Hilton Worldwide Holdings Inc. (HLT) (Consumer Cyclical) with a 1Y correlation of -0.48, up from -0.59 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Hilton Worldwide Holdings Inc. | -0.48 | -0.55 | -0.59 | 83 | Consumer Cyclical | |
| Glaukos Corporation | -0.37 | -0.32 | -0.36 | 66 | Healthcare | |
| Merck & Co., Inc. | -0.21 | -0.20 | -0.21 | 89 | Healthcare | |
| GE Vernova Inc. | -0.20 | — | — | 89 | Industrials | |
| Applied Materials, Inc. | -0.16 | -0.26 | -0.41 | 97 | Technology |
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Build a portfolio that complements FAZ
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