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
371 ETFs have low correlation with IWM (below 0.3), 66 of which are negatively correlated. The least correlated is Invesco DB Energy Fund (DBE) (Oil & Gas) with a 1Y correlation of -0.28, down from 0.12 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Invesco DB Energy Fund | -0.28 | -0.02 | 0.12 | 71 | Oil & Gas | IWM vs DBE | |
| United States Oil Fund LP | -0.27 | -0.01 | 0.12 | 66 | Oil & Gas | IWM vs USO | |
| United States Brent Oil Fund LP | -0.26 | -0.00 | 0.12 | 65 | Oil & Gas | IWM vs BNO | |
| Defiance Oil Enhanced Options Income ETF | -0.26 | — | — | 56 | Derivative Income | IWM vs USOY | |
| ProShares K-1 Free Crude Oil Strategy ETF | -0.23 | 0.02 | 0.14 | 56 | Oil & Gas | IWM vs OILK |
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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 Altria Group, Inc. (MO) (Consumer Defensive) with a 1Y correlation of -0.15, down from 0.18 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Altria Group, Inc. | -0.15 | 0.08 | 0.18 | 67 | Consumer Defensive | |
| Equinor ASA | -0.12 | 0.12 | 0.22 | 82 | Energy | |
| Duke Energy Corporation | -0.09 | 0.04 | 0.11 | 52 | Utilities | |
| The Coca-Cola Company | -0.08 | 0.05 | 0.18 | 63 | Consumer Defensive | |
| Exxon Mobil Corporation | -0.06 | 0.19 | 0.30 | 85 | Energy |
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