Looking to diversify beyond FAZ? The ETFs below have historically moved differently from FAZ, which may reduce portfolio volatility when combined in a suitable allocation. The stock ideas table highlights individual companies with the same low-correlation characteristics. Correlation can change and does not guarantee that one asset will rise when another falls.
Best Diversifiers for FAZ
2241 ETFs have low correlation with FAZ (below 0.3), 2147 of which are negatively correlated. The least correlated is Davis Select Financial ETF (DFNL) (Financials Equities) with a 1Y correlation of -0.88, roughly unchanged from -0.93 over 5 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Davis Select Financial ETF | -0.88 | -0.90 | -0.93 | 52 | Financials Equities | FAZ vs DFNL | |
| iShares Global Financials ETF | -0.86 | -0.89 | -0.92 | 65 | Financials Equities | FAZ vs IXG | |
| Invesco KBW Bank ETF | -0.84 | -0.86 | -0.90 | 65 | Financials Equities | FAZ vs KBWB | |
| MicroSectors U.S. Big Banks Index 3X Leveraged ETN... | -0.82 | — | — | 55 | Leveraged Equities | FAZ vs BNKU | |
| Oakmark U.S. Large Cap ETF | -0.81 | — | — | 56 | Large Cap Value Equities | FAZ vs OAKM |
To view more results, upgrade your current subscription plan.
Low-Correlation Stock Ideas
The table shows companies with at least $1B in market capitalization, historical correlation data for FAZ, and a Risk / Return Rank of 50 or higher. Treat them as research candidates rather than evidence that they will offset a future decline. The least correlated is Berkshire Hathaway Inc. (BRK-B) (Financial Services) with a 1Y correlation of -0.48, up from -0.75 over 5 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Berkshire Hathaway Inc. | -0.48 | -0.68 | -0.75 | 61 | Financial Services | |
| Hilton Worldwide Holdings Inc. | -0.46 | -0.56 | -0.58 | 72 | Consumer Cyclical | |
| Glaukos Corporation | -0.32 | -0.34 | -0.37 | 89 | Healthcare | |
| Arch Capital Group Ltd. | -0.26 | -0.41 | -0.48 | 67 | Financial Services | |
| Merck & Co., Inc. | -0.18 | -0.21 | -0.21 | 96 | Healthcare |
To view more results, upgrade your current subscription plan.
Build a portfolio that complements FAZ
Add FAZ to the Diversification Analyzer to see how it overlaps with your other holdings and which assets balance it best.
Analyze a portfolio with FAZ