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
331 ETFs have low correlation with IWM (below 0.3), 56 of which are negatively correlated. The least correlated is ProShares Short Bitcoin ETF (BITI) (Cryptocurrency) with a 1Y correlation of -0.48, roughly unchanged from -0.43 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| ProShares Short Bitcoin ETF | -0.48 | -0.41 | -0.43 | 53 | Cryptocurrency | IWM vs BITI | |
| T-REX 2X Inverse MSTR Daily Target ETF | -0.47 | -0.45 | -0.45 | 65 | Inverse Equities, Leveraged Equities | IWM vs MSTZ | |
| Defiance Daily Target 2X Short MSTR ETF | -0.47 | — | — | 56 | Inverse Equities | IWM vs SMST | |
| YieldMax Short MSTR Option Income Strategy ETF | -0.45 | — | — | 70 | Derivative Income | IWM vs WNTR | |
| Invesco DB Energy Fund | -0.28 | -0.05 | 0.11 | 57 | Oil & Gas | IWM vs DBE |
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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 -0.21, down from 0.09 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Consolidated Edison, Inc. | -0.21 | -0.00 | 0.09 | 69 | Utilities | |
| Altria Group, Inc. | -0.20 | 0.03 | 0.16 | 78 | Consumer Defensive | |
| The Coca-Cola Company | -0.17 | 0.03 | 0.17 | 82 | Consumer Defensive | |
| Equinor ASA | -0.15 | 0.09 | 0.20 | 77 | Energy | |
| Exxon Mobil Corporation | -0.13 | 0.14 | 0.28 | 76 | Energy |
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Build a portfolio that complements IWM
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