Looking to balance out your exposure to LII? The ETFs below have the lowest correlation with LII — they tend to move on their own, which can help reduce risk when LII drops. The stock ideas table highlights individual companies that behave independently from LII.
Best Diversifiers for LII
2 ETFs have low correlation with LII (below 0.3), 2 of which are negatively correlated. The least correlated is SPDR Bloomberg 1-3 Month T-Bill ETF (BIL) (Government Bonds) with a 1Y correlation of -0.03, roughly unchanged from 0.00 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| SPDR Bloomberg 1-3 Month T-Bill ETF | -0.03 | -0.05 | 0.00 | 100 | Government Bonds, Ultrashort Bond | LII vs BIL | |
| State Street Energy Select Sector SPDR ETF | -0.00 | 0.13 | 0.15 | 50 | Energy Equities | LII vs XLE | |
| Invesco QQQ ETF | 0.33 | 0.45 | 0.50 | 58 | Nasdaq-100 | LII vs QQQ | |
| Vanguard S&P 500 ETF | 0.43 | 0.54 | 0.58 | 66 | S&P 500 | LII vs VOO | |
| State Street SPDR S&P 500 ETF | 0.44 | 0.54 | 0.59 | 66 | S&P 500 | LII vs SPY |
Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from LII, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to LII and solid risk/return profiles. The least correlated is Cheniere Energy, Inc. (LNG) (Energy) with a 1Y correlation of -0.09, down from 0.10 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Cheniere Energy, Inc. | -0.09 | 0.07 | 0.10 | 58 | Energy | |
| McKesson Corporation | -0.07 | 0.04 | 0.10 | 60 | Healthcare | |
| Chevron Corporation | -0.06 | 0.06 | 0.11 | 70 | Energy | |
| Exxon Mobil Corporation | -0.04 | 0.06 | 0.11 | 75 | Energy | |
| Murphy USA Inc. | -0.04 | 0.12 | 0.19 | 77 | Consumer Cyclical |
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