Looking to diversify beyond IWB? The ETFs below have the lowest correlation with IWB — 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 IWB.
Best Diversifiers for IWB
348 ETFs have low correlation with IWB (below 0.3), 65 of which are negatively correlated. The least correlated is Defiance Daily Target 2X Short MSTR ETF (SMST) (Inverse Equities) with a 1Y correlation of -0.49, roughly unchanged from -0.48 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Defiance Daily Target 2X Short MSTR ETF | -0.49 | -0.48 | -0.48 | 60 | Inverse Equities | IWB vs SMST | |
| T-REX 2X Inverse MSTR Daily Target ETF | -0.49 | -0.47 | -0.47 | 68 | Inverse Equities, Leveraged Equities | IWB vs MSTZ | |
| ProShares Short Bitcoin ETF | -0.47 | -0.38 | -0.39 | 57 | Cryptocurrency | IWB vs BITI | |
| Proshares Ultrashort Bitcoin ETF | -0.47 | -0.44 | -0.44 | 52 | Cryptocurrency, Leveraged Cryptocurrency | IWB vs SBIT | |
| YieldMax Short MSTR Option Income Strategy ETF | -0.47 | — | — | 70 | Derivative Income | IWB vs WNTR |
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Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from IWB, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to IWB and solid risk/return profiles. The least correlated is Altria Group, Inc. (MO) (Consumer Defensive) with a 1Y correlation of -0.22, down from 0.12 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Altria Group, Inc. | -0.22 | -0.00 | 0.12 | 81 | Consumer Defensive | |
| Duke Energy Corporation | -0.22 | -0.02 | 0.12 | 66 | Utilities | |
| The Coca-Cola Company | -0.19 | 0.04 | 0.23 | 83 | Consumer Defensive | |
| Exxon Mobil Corporation | -0.19 | 0.04 | 0.19 | 75 | Energy | |
| Verizon Communications Inc. | -0.18 | 0.01 | 0.14 | 57 | Communication Services |
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