Looking to diversify beyond MSFU? The ETFs below have the lowest correlation with MSFU — 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 MSFU.
Best Diversifiers for MSFU
1074 ETFs have low correlation with MSFU (below 0.3), 63 of which are negatively correlated. The least correlated is iShares Core High Dividend ETF (HDV) (Dividend) with a 1Y correlation of -0.18, down from -0.02 over 3 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| iShares Core High Dividend ETF | -0.18 | -0.02 | — | 64 | Dividend, Large Cap Value Equities | MSFU vs HDV | |
| Brookstone Ultra-Short Bond ETF | -0.17 | — | — | 98 | Ultrashort Bond | MSFU vs BAMU | |
| First Trust Morningstar Dividend Leaders Index Fun... | -0.15 | 0.02 | — | 65 | Large Cap Value Equities, Dividend | MSFU vs FDL | |
| iShares iBonds Oct 2026 Term TIPS ETF | -0.11 | — | — | 98 | Inflation-Protected Bonds | MSFU vs IBIC | |
| Avantis Inflation Focused Equity ETF | -0.10 | 0.07 | 0.16 | 74 | Large Cap Blend Equities | MSFU vs AVIE |
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Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from MSFU, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to MSFU and solid risk/return profiles. The least correlated is Merck & Co., Inc. (MRK) (Healthcare) with a 1Y correlation of -0.22, down from -0.03 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Merck & Co., Inc. | -0.22 | -0.07 | -0.03 | 88 | Healthcare | |
| Johnson & Johnson | -0.13 | -0.10 | -0.02 | 95 | Healthcare | |
| Exxon Mobil Corporation | -0.11 | -0.09 | -0.00 | 68 | Energy | |
| Chevron Corporation | -0.10 | -0.04 | 0.03 | 68 | Energy | |
| Welltower Inc. | -0.07 | 0.04 | 0.13 | 85 | Real Estate |
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