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
2046 ETFs have low correlation with FAZ (below 0.3), 1984 of which are negatively correlated. The least correlated is Invesco KBW Bank ETF (KBWB) (Financials Equities) with a 1Y correlation of -0.85, roughly unchanged from -0.90 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Invesco KBW Bank ETF | -0.85 | -0.86 | -0.90 | 56 | Financials Equities | FAZ vs KBWB | |
| MicroSectors U.S. Big Banks Index 3X Leveraged ETN... | -0.84 | — | — | 54 | Leveraged Equities | FAZ vs BNKU | |
| Amplify CWP Enhanced Dividend Income ETF | -0.78 | -0.80 | -0.82 | 69 | Derivative Income | FAZ vs DIVO | |
| Columbia U.S. Equity Income ETF | -0.77 | -0.77 | -0.83 | 72 | Large Cap Value Equities | FAZ vs EQIN | |
| State Street SPDR Dow Jones Industrial Average ETF... | -0.77 | -0.81 | -0.85 | 59 | Large Cap Blend Equities | FAZ vs DIA |
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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 Berkshire Hathaway Inc. (BRK-B) (Financial Services) with a 1Y correlation of -0.49, up from -0.76 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Berkshire Hathaway Inc. | -0.49 | -0.68 | -0.76 | 53 | Financial Services | |
| Hilton Worldwide Holdings Inc. | -0.46 | -0.55 | -0.59 | 68 | Consumer Cyclical | |
| Glaukos Corporation | -0.36 | -0.34 | -0.37 | 74 | Healthcare | |
| Arch Capital Group Ltd. | -0.28 | -0.42 | -0.49 | 68 | Financial Services | |
| Merck & Co., Inc. | -0.20 | -0.20 | -0.21 | 91 | Healthcare |
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