Looking to diversify beyond IALT? The ETFs below have the lowest correlation with IALT — 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 IALT.
Best Diversifiers for IALT
550 ETFs have low correlation with IALT (below 0.3), 45 of which are negatively correlated. The least correlated is TCW AAA CLO ETF (ACLO) (CLO) with a 1Y correlation of -0.20, roughly unchanged from -0.20 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| TCW AAA CLO ETF | -0.20 | -0.20 | -0.20 | 99 | CLO | IALT vs ACLO | |
| ProShares UltraShort Yen | -0.18 | -0.18 | -0.18 | 61 | Leveraged Currency | IALT vs YCS | |
| US Treasury 3 Month Bill ETF | -0.12 | -0.12 | -0.12 | 100 | Ultrashort Bond | IALT vs TBIL | |
| WisdomTree Floating Rate Treasury Fund | -0.12 | -0.12 | -0.12 | 100 | Government Bonds, Ultrashort Bond | IALT vs USFR | |
| Invesco DB Energy Fund | -0.11 | -0.11 | -0.11 | 71 | Oil & Gas | IALT vs DBE |
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Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from IALT, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to IALT and solid risk/return profiles. The least correlated is Reaves Utility Income Trust (UTG) (Financial Services) with a 1Y correlation of 0.32, roughly unchanged from 0.32 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Reaves Utility Income Trust | 0.32 | 0.32 | 0.32 | 78 | Financial Services | |
| Comfort Systems USA, Inc. | 0.41 | 0.41 | 0.41 | 98 | Industrials | |
| Vertiv Holdings Co. | 0.43 | 0.43 | 0.43 | 94 | Industrials | |
| Teradyne, Inc. | 0.56 | 0.56 | 0.56 | 98 | Technology |
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