Looking to diversify beyond IBTF? The ETFs below have the lowest correlation with IBTF — 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 IBTF.
Best Diversifiers for IBTF
2046 ETFs have low correlation with IBTF (below 0.3), 1300 of which are negatively correlated. The least correlated is iShares Short Duration High Yield Muni Active ETF (SHYM) (High Yield Muni) with a 1Y correlation of -0.19, down from 0.32 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| iShares Short Duration High Yield Muni Active ETF | -0.19 | 0.17 | 0.32 | 60 | High Yield Muni | IBTF vs SHYM | |
| Hartford AAA CLO ETF | -0.16 | — | — | 90 | CLO | IBTF vs TRPA | |
| Return Stacked Bonds & Managed Futures ETF | -0.16 | -0.06 | -0.03 | 51 | Nontraditional Bonds | IBTF vs RSBT | |
| STMicroelectronics NV ADRhedged | -0.13 | — | — | 79 | Technology Equities | IBTF vs STHH | |
| Invesco Managed Futures Strategy ETF | -0.13 | — | — | 75 | Systematic Trend | IBTF vs IMF |
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Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from IBTF, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to IBTF and solid risk/return profiles. The least correlated is Cisco Systems, Inc. (CSCO) (Technology) with a 1Y correlation of -0.08, down from 0.06 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Cisco Systems, Inc. | -0.08 | 0.01 | 0.06 | 94 | Technology | |
| The PNC Financial Services Group, Inc. | -0.06 | -0.03 | -0.04 | 79 | Financial Services | |
| Verizon Communications Inc. | -0.04 | 0.07 | 0.08 | 54 | Communication Services | |
| AbbVie Inc. | -0.04 | -0.01 | 0.01 | 77 | Healthcare | |
| Truist Financial Corporation | -0.04 | -0.00 | -0.05 | 65 | Financial Services |
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Build a portfolio that complements IBTF
Add IBTF to the Diversification Analyzer to see how it overlaps with your other holdings and which assets balance it best.
Analyze a portfolio with IBTF