Looking to balance out your exposure to LI? The ETFs below have the lowest correlation with LI — they tend to move on their own, which can help reduce risk when LI drops. The stock ideas table highlights individual companies that behave independently from LI.
Best Diversifiers for LI
6 ETFs have low correlation with LI (below 0.3), 0 of which are negatively correlated. The least correlated is Schwab U.S. Dividend Equity ETF (SCHD) (Dividend) with a 1Y correlation of 0.21, roughly unchanged from 0.20 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Schwab U.S. Dividend Equity ETF | 0.21 | 0.17 | 0.20 | 91 | Dividend | LI vs SCHD | |
| SPDR Portfolio High Yield Bond ETF | 0.24 | 0.20 | 0.25 | 72 | High Yield Bonds | LI vs SPHY | |
| Vanguard High Dividend Yield ETF | 0.25 | 0.21 | 0.22 | 85 | Dividend | LI vs VYM | |
| Invesco QQQ ETF | 0.27 | 0.21 | 0.31 | 53 | Nasdaq-100 | LI vs QQQ | |
| Vanguard S&P 500 ETF | 0.28 | 0.22 | 0.28 | 66 | S&P 500 | LI vs VOO |
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Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from LI, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to LI and solid risk/return profiles. The least correlated is Waste Management, Inc. (WM) (Industrials) with a 1Y correlation of -0.13, down from -0.02 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Waste Management, Inc. | -0.13 | -0.07 | -0.02 | 56 | Industrials | |
| Altria Group, Inc. | -0.10 | -0.01 | -0.00 | 80 | Consumer Defensive | |
| Duke Energy Corporation | -0.08 | 0.00 | -0.03 | 64 | Utilities | |
| The Coca-Cola Company | -0.04 | 0.05 | 0.05 | 84 | Consumer Defensive | |
| Exxon Mobil Corporation | -0.00 | 0.03 | 0.04 | 78 | Energy |
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Build a portfolio that complements LI
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