Looking to balance out your exposure to MSCI? The ETFs below have the lowest correlation with MSCI — they tend to move on their own, which can help reduce risk when MSCI drops. The stock ideas table highlights individual companies that behave independently from MSCI.
Best Diversifiers for MSCI
254 ETFs have low correlation with MSCI (below 0.3), 15 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 -0.14, down from -0.03 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| SPDR Bloomberg 1-3 Month T-Bill ETF | -0.14 | -0.09 | -0.03 | 100 | Government Bonds, Ultrashort Bond | MSCI vs BIL | |
| ProShares Ultra Bloomberg Crude Oil | -0.10 | -0.07 | 0.02 | 54 | Leveraged Commodities | MSCI vs UCO | |
| United States Oil Fund LP | -0.09 | -0.07 | 0.02 | 66 | Oil & Gas | MSCI vs USO | |
| Invesco Optimum Yield Diversified Commodity Strate... | -0.07 | -0.02 | 0.05 | 76 | Commodities | MSCI vs PDBC | |
| Invesco DB Commodity Index Tracking Fund | -0.07 | -0.02 | 0.05 | 76 | Commodities | MSCI vs DBC |
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Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from MSCI, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to MSCI and solid risk/return profiles. The least correlated is Lumentum Holdings Inc. (LITE) (Technology) with a 1Y correlation of -0.10, down from 0.27 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Lumentum Holdings Inc. | -0.10 | 0.14 | 0.27 | 99 | Technology | |
| BP p.l.c. | -0.09 | 0.04 | 0.13 | 89 | Energy | |
| Petróleo Brasileiro S.A. - Petrobras | -0.07 | 0.02 | 0.05 | 88 | Energy | |
| Fabrinet | -0.05 | 0.13 | 0.28 | 93 | Technology | |
| Quanta Services, Inc. | -0.05 | 0.18 | 0.33 | 94 | Industrials |
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Build a portfolio that complements MSCI
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