Looking to balance out your exposure to FDS? The ETFs below have the lowest correlation with FDS — they tend to move on their own, which can help reduce risk when FDS drops. The stock ideas table highlights individual companies that behave independently from FDS.
Best Diversifiers for FDS
5 ETFs have low correlation with FDS (below 0.3), 0 of which are negatively correlated. The least correlated is Invesco QQQ ETF (QQQ) (Nasdaq-100) with a 1Y correlation of 0.03, down from 0.38 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Invesco QQQ ETF | 0.03 | 0.22 | 0.38 | 73 | Nasdaq-100 | FDS vs QQQ | |
| SPDR Bloomberg 1-3 Month T-Bill ETF | 0.04 | 0.00 | 0.01 | 100 | Government Bonds, Ultrashort Bond | FDS vs BIL | |
| State Street SPDR S&P 500 ETF | 0.09 | 0.31 | 0.45 | 70 | S&P 500 | FDS vs SPY | |
| Vanguard Total Stock Market ETF | 0.10 | 0.31 | 0.45 | 68 | Large Cap Blend Equities | FDS vs VTI | |
| Vanguard S&P 500 ETF | 0.10 | 0.31 | 0.45 | 70 | S&P 500 | FDS vs VOO |
Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from FDS, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to FDS and solid risk/return profiles. The least correlated is ASML Holding N.V. (ASML) (Technology) with a 1Y correlation of -0.15, down from 0.26 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| ASML Holding N.V. | -0.15 | 0.09 | 0.26 | 94 | Technology | |
| Advanced Micro Devices, Inc. | -0.14 | 0.05 | 0.20 | 98 | Technology | |
| The Williams Companies, Inc. | -0.11 | 0.08 | 0.16 | 66 | Energy | |
| Intel Corporation | -0.11 | 0.10 | 0.19 | 98 | Technology | |
| Alphabet Inc. Class A | -0.08 | 0.11 | 0.26 | 96 | Communication Services |
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