Looking to diversify beyond LQD? The ETFs below have the lowest correlation with LQD — 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 LQD.
Best Diversifiers for LQD
317 ETFs have low correlation with LQD (below 0.3), 35 of which are negatively correlated. The least correlated is ProShares UltraShort Yen (YCS) (Leveraged Currency) with a 1Y correlation of -0.49, roughly unchanged from -0.46 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| ProShares UltraShort Yen | -0.49 | -0.44 | -0.46 | 61 | Leveraged Currency | LQD vs YCS | |
| Fidelity Managed Futures ETF | -0.27 | — | — | 64 | Systematic Trend | LQD vs FFUT | |
| VanEck Commodity Strategy ETF | -0.25 | -0.08 | — | 55 | Commodities | LQD vs PIT | |
| First Trust Alternative Absolute Return Strategy E... | -0.25 | -0.10 | -0.09 | 70 | Commodities | LQD vs FAAR | |
| iShares Enhanced Short-Term Bond Active ETF | -0.23 | -0.18 | -0.18 | 99 | Ultrashort Bond | LQD vs CSHP |
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Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from LQD, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to LQD and solid risk/return profiles. The least correlated is ConocoPhillips Company (COP) (Energy) with a 1Y correlation of -0.26, down from -0.06 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| ConocoPhillips Company | -0.26 | -0.08 | -0.06 | 61 | Energy | |
| Exxon Mobil Corporation | -0.24 | -0.05 | -0.04 | 68 | Energy | |
| Chevron Corporation | -0.24 | -0.04 | -0.04 | 68 | Energy | |
| Energy Transfer LP | -0.19 | 0.03 | 0.03 | 67 | Energy | |
| BP p.l.c. | -0.18 | -0.03 | -0.04 | 76 | Energy |
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Build a portfolio that complements LQD
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