Looking to diversify beyond FDMO? The ETFs below have historically moved differently from FDMO, 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 FDMO
510 ETFs have low correlation with FDMO (below 0.3), 97 of which are negatively correlated. The least correlated is ProShares Short Bitcoin ETF (BITI) (Cryptocurrency) with a 1Y correlation of -0.52, down from -0.40 over 3 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| ProShares Short Bitcoin ETF | -0.52 | -0.40 | — | 51 | Cryptocurrency | FDMO vs BITI | |
| YieldMax MSTR Short Option Income Strategy ETF | -0.48 | — | — | 69 | Derivative Income | FDMO vs WNTR | |
| Invesco DB Energy Fund | -0.22 | -0.06 | 0.07 | 66 | Oil & Gas | FDMO vs DBE | |
| iShares iBonds Oct 2026 Term TIPS ETF | -0.22 | — | — | 98 | Inflation-Protected Bonds | FDMO vs IBIC | |
| F/m Ultrashort Treasury Inflation-Protected Securi... | -0.21 | — | — | 97 | Inflation-Protected Bonds | FDMO vs RBIL |
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Low-Correlation Stock Ideas
The table shows companies with at least $1B in market capitalization, historical correlation data for FDMO, 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 The Coca-Cola Company (KO) (Consumer Defensive) with a 1Y correlation of -0.30, down from 0.14 over 5 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| The Coca-Cola Company | -0.30 | -0.08 | 0.14 | 87 | Consumer Defensive | |
| Altria Group, Inc. | -0.30 | -0.09 | 0.06 | 66 | Consumer Defensive | |
| Duke Energy Corporation | -0.26 | -0.10 | 0.04 | 52 | Utilities | |
| Verizon Communications Inc. | -0.25 | -0.10 | 0.06 | 66 | Communication Services | |
| Colgate-Palmolive Company | -0.24 | -0.07 | 0.08 | 57 | Consumer Defensive |
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