Looking to balance out your exposure to PDO? The ETFs below have the lowest correlation with PDO — they tend to move on their own, which can help reduce risk when PDO drops. The stock ideas table highlights individual companies that behave independently from PDO.
Best Diversifiers for PDO
11 ETFs have low correlation with PDO (below 0.3), 1 of which are negatively correlated. The least correlated is iShares 0-3 Month Treasury Bond ETF (SGOV) (Ultrashort Bond) with a 1Y correlation of -0.06, roughly unchanged from 0.03 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| iShares 0-3 Month Treasury Bond ETF | -0.06 | -0.00 | 0.03 | 100 | Ultrashort Bond | PDO vs SGOV | |
| Vanguard Short-Term Inflation-Protected Securities... | 0.03 | 0.17 | 0.17 | 87 | Inflation-Protected Bonds | PDO vs VTIP | |
| BondBloxx Private Credit CLO ETF | 0.08 | — | — | 54 | CLO | PDO vs PCMM | |
| PIMCO Enhanced Short Maturity Active ETF | 0.08 | 0.04 | 0.15 | 100 | Ultrashort Bond | PDO vs MINT | |
| iShares AAA CLO Active ETF | 0.10 | 0.08 | — | 99 | CLO | PDO vs CLOA |
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Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from PDO, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to PDO and solid risk/return profiles. The least correlated is Altria Group, Inc. (MO) (Consumer Defensive) with a 1Y correlation of -0.09, down from 0.12 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Altria Group, Inc. | -0.09 | 0.05 | 0.12 | 74 | Consumer Defensive | |
| Woodside Energy Group Ltd | -0.06 | 0.14 | 0.20 | 68 | Energy | |
| Antero Midstream Corporation | -0.04 | 0.18 | 0.27 | 74 | Energy | |
| Walmart Inc. | 0.03 | 0.12 | 0.17 | 70 | Consumer Defensive | |
| Lockheed Martin Corporation | 0.04 | 0.10 | 0.11 | 52 | Industrials |
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Build a portfolio that complements PDO
Add PDO to the Diversification Analyzer to see how it overlaps with your other holdings and which assets balance it best.
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