Looking to balance out your exposure to IT? The ETFs below have the lowest correlation with IT — they tend to move on their own, which can help reduce risk when IT drops. The stock ideas table highlights individual companies that behave independently from IT.
Best Diversifiers for IT
3 ETFs have low correlation with IT (below 0.3), 0 of which are negatively correlated. The least correlated is iShares 0-3 Month Treasury Bond ETF (SGOV) (Ultrashort Bond) with a 1Y correlation of 0.08, roughly unchanged from 0.01 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| iShares 0-3 Month Treasury Bond ETF | 0.08 | 0.06 | 0.01 | 100 | Ultrashort Bond | IT vs SGOV | |
| Vanguard S&P 500 ETF | 0.21 | 0.45 | 0.56 | 74 | S&P 500 | IT vs VOO | |
| State Street SPDR S&P 500 ETF | 0.21 | 0.45 | 0.56 | 74 | S&P 500 | IT vs SPY |
Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from IT, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to IT and solid risk/return profiles. The least correlated is Fabrinet (FN) (Technology) with a 1Y correlation of -0.18, down from 0.29 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Fabrinet | -0.18 | 0.15 | 0.29 | 93 | Technology | |
| Argan, Inc. | -0.15 | 0.10 | 0.17 | 94 | Industrials | |
| EMCOR Group, Inc. | -0.12 | 0.20 | 0.32 | 84 | Industrials | |
| Jabil Inc. | -0.08 | 0.22 | 0.37 | 92 | Technology | |
| NVIDIA Corporation | -0.08 | 0.21 | 0.36 | 80 | Technology |
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