Looking to diversify beyond IEFA? The ETFs below have the lowest correlation with IEFA — 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 IEFA.
Best Diversifiers for IEFA
222 ETFs have low correlation with IEFA (below 0.3), 48 of which are negatively correlated. The least correlated is ProShares UltraShort Yen (YCS) (Leveraged Currency) with a 1Y correlation of -0.43, down from -0.25 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| ProShares UltraShort Yen | -0.43 | -0.30 | -0.25 | 75 | Leveraged Currency | IEFA vs YCS | |
| T-REX 2X Inverse MSTR Daily Target ETF | -0.36 | — | — | 60 | Inverse Equities, Leveraged Equities | IEFA vs MSTZ | |
| Defiance Daily Target 2X Short MSTR ETF | -0.36 | — | — | 53 | Inverse Equities | IEFA vs SMST | |
| YieldMax Short MSTR Option Income Strategy ETF | -0.34 | — | — | 65 | Derivative Income | IEFA vs WNTR | |
| United States Gasoline Fund LP | -0.28 | -0.08 | 0.06 | 72 | Oil & Gas | IEFA vs UGA |
To view more results, upgrade your current subscription plan.
Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from IEFA, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to IEFA and solid risk/return profiles. The least correlated is Altria Group, Inc. (MO) (Consumer Defensive) with a 1Y correlation of -0.13, down from 0.17 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Altria Group, Inc. | -0.13 | 0.07 | 0.17 | 79 | Consumer Defensive | |
| ConocoPhillips Company | -0.12 | 0.06 | 0.22 | 63 | Energy | |
| Devon Energy Corporation | -0.12 | 0.11 | 0.25 | 69 | Energy | |
| Occidental Petroleum Corporation | -0.12 | 0.08 | 0.22 | 60 | Energy | |
| Waste Management, Inc. | -0.11 | 0.10 | 0.23 | 51 | Industrials |
To view more results, upgrade your current subscription plan.
Build a portfolio that complements IEFA
Add IEFA to the Diversification Analyzer to see how it overlaps with your other holdings and which assets balance it best.
Analyze a portfolio with IEFA