Looking to diversify beyond IWM? The ETFs below have the lowest correlation with IWM — 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 IWM.
Best Diversifiers for IWM
286 ETFs have low correlation with IWM (below 0.3), 36 of which are negatively correlated. The least correlated is United States Gasoline Fund LP (UGA) (Oil & Gas) with a 1Y correlation of -0.20, down from 0.11 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| United States Gasoline Fund LP | -0.20 | -0.02 | 0.11 | 55 | Oil & Gas | IWM vs UGA | |
| ProShares UltraShort Yen | -0.20 | -0.09 | -0.05 | 63 | Leveraged Currency | IWM vs YCS | |
| WisdomTree Floating Rate Treasury Fund | -0.18 | -0.05 | -0.04 | 100 | Government Bonds, Ultrashort Bond | IWM vs USFR | |
| iShares iBonds Oct 2026 Term TIPS ETF | -0.18 | — | — | 98 | Inflation-Protected Bonds | IWM vs IBIC | |
| iShares iBonds Oct 2027 Term TIPS ETF | -0.15 | — | — | 95 | Inflation-Protected Bonds | IWM vs IBID |
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Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from IWM, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to IWM and solid risk/return profiles. The least correlated is Consolidated Edison, Inc. (ED) (Utilities) with a 1Y correlation of -0.17, down from 0.10 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Consolidated Edison, Inc. | -0.17 | 0.01 | 0.10 | 61 | Utilities | |
| Altria Group, Inc. | -0.14 | 0.06 | 0.17 | 72 | Consumer Defensive | |
| Equinor ASA | -0.13 | 0.10 | 0.21 | 66 | Energy | |
| The Coca-Cola Company | -0.13 | 0.04 | 0.17 | 74 | Consumer Defensive | |
| Exxon Mobil Corporation | -0.09 | 0.17 | 0.30 | 72 | Energy |
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