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 0.17, roughly unchanged from 0.19 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Schwab U.S. Dividend Equity ETF | 0.17 | 0.17 | 0.19 | 80 | Dividend | LI vs SCHD | |
| SPDR Portfolio High Yield Bond ETF | 0.21 | 0.20 | 0.25 | 62 | High Yield Bonds | LI vs SPHY | |
| Vanguard High Dividend Yield ETF | 0.24 | 0.22 | 0.21 | 77 | Dividend | LI vs VYM | |
| Vanguard S&P 500 ETF | 0.28 | 0.22 | 0.28 | 70 | S&P 500 | LI vs VOO | |
| Invesco QQQ ETF | 0.28 | 0.21 | 0.30 | 73 | Nasdaq-100 | LI vs QQQ |
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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 Duke Energy Corporation (DUK) (Utilities) with a 1Y correlation of -0.06, roughly unchanged from -0.02 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Duke Energy Corporation | -0.06 | 0.02 | -0.02 | 53 | Utilities | |
| Altria Group, Inc. | -0.05 | 0.01 | -0.00 | 69 | Consumer Defensive | |
| Exxon Mobil Corporation | -0.04 | 0.04 | 0.04 | 85 | Energy | |
| The Coca-Cola Company | -0.02 | 0.06 | 0.04 | 66 | Consumer Defensive | |
| Walmart Inc. | 0.01 | 0.05 | 0.06 | 63 | Consumer Defensive |
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Build a portfolio that complements LI
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