Looking to balance out your exposure to MSFT? The ETFs below have the lowest correlation with MSFT — they tend to move on their own, which can help reduce risk when MSFT drops. The stock ideas table highlights individual companies that behave independently from MSFT.
Best Diversifiers for MSFT
240 ETFs have low correlation with MSFT (below 0.3), 16 of which are negatively correlated. The least correlated is iShares Core High Dividend ETF (HDV) (Dividend) with a 1Y correlation of -0.17, down from 0.22 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| iShares Core High Dividend ETF | -0.17 | -0.02 | 0.22 | 74 | Dividend, Large Cap Value Equities | MSFT vs HDV | |
| First Trust Morningstar Dividend Leaders Index Fun... | -0.13 | 0.03 | 0.22 | 72 | Large Cap Value Equities, Dividend | MSFT vs FDL | |
| WisdomTree US High Dividend Fund | -0.10 | 0.04 | 0.22 | 75 | Large Cap Value Equities, Dividend | MSFT vs DHS | |
| Pacer Global Cash Cows Dividend ETF | -0.06 | 0.08 | 0.26 | 61 | Large Cap Value Equities, Dividend | MSFT vs GCOW | |
| Schwab U.S. Dividend Equity ETF | -0.05 | 0.13 | 0.35 | 77 | Dividend | MSFT vs SCHD |
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Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from MSFT, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to MSFT and solid risk/return profiles. The least correlated is Merck & Co., Inc. (MRK) (Healthcare) with a 1Y correlation of -0.26, down from 0.02 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Merck & Co., Inc. | -0.26 | -0.08 | 0.02 | 90 | Healthcare | |
| The Coca-Cola Company | -0.25 | -0.08 | 0.13 | 74 | Consumer Defensive | |
| Johnson & Johnson | -0.21 | -0.14 | 0.05 | 96 | Healthcare | |
| Consolidated Edison, Inc. | -0.21 | -0.17 | -0.01 | 66 | Utilities | |
| PepsiCo, Inc. | -0.19 | -0.04 | 0.14 | 59 | Consumer Defensive |
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