Looking to diversify beyond FDMO? The ETFs below have the lowest correlation with FDMO — 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 FDMO.
Best Diversifiers for FDMO
413 ETFs have low correlation with FDMO (below 0.3), 93 of which are negatively correlated. The least correlated is Invesco DB Energy Fund (DBE) (Oil & Gas) with a 1Y correlation of -0.30, down from 0.08 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Invesco DB Energy Fund | -0.30 | -0.06 | 0.08 | 71 | Oil & Gas | FDMO vs DBE | |
| United States Oil Fund LP | -0.29 | -0.05 | 0.08 | 66 | Oil & Gas | FDMO vs USO | |
| United States Brent Oil Fund LP | -0.27 | -0.05 | 0.08 | 65 | Oil & Gas | FDMO vs BNO | |
| F/m Ultrashort Treasury Inflation-Protected Securi... | -0.25 | — | — | 98 | Inflation-Protected Bonds | FDMO vs RBIL | |
| Defiance Oil Enhanced Options Income ETF | -0.25 | — | — | 56 | Derivative Income | FDMO vs USOY |
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Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from FDMO, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to FDMO and solid risk/return profiles. The least correlated is Duke Energy Corporation (DUK) (Utilities) with a 1Y correlation of -0.20, down from 0.07 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Duke Energy Corporation | -0.20 | -0.09 | 0.07 | 53 | Utilities | |
| Exxon Mobil Corporation | -0.18 | 0.02 | 0.18 | 85 | Energy | |
| Altria Group, Inc. | -0.18 | -0.03 | 0.11 | 69 | Consumer Defensive | |
| Chevron Corporation | -0.18 | 0.04 | 0.21 | 83 | Energy | |
| ConocoPhillips Company | -0.17 | 0.05 | 0.20 | 76 | Energy |
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