Looking to balance out your exposure to PFSI? The ETFs below have the lowest correlation with PFSI — they tend to move on their own, which can help reduce risk when PFSI drops. The stock ideas table highlights individual companies that behave independently from PFSI.
Best Diversifiers for PFSI
1 ETFs have low correlation with PFSI (below 0.3), 0 of which are negatively correlated. The least correlated is Vanguard Information Technology ETF (VGT) (Technology Equities) with a 1Y correlation of 0.16, down from 0.43 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Vanguard Information Technology ETF | 0.16 | 0.31 | 0.43 | 76 | Technology Equities | PFSI vs VGT | |
| State Street SPDR S&P 500 ETF | 0.34 | 0.46 | 0.52 | 70 | S&P 500 | PFSI vs SPY |
Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from PFSI, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to PFSI and solid risk/return profiles. The least correlated is AbbVie Inc. (ABBV) (Healthcare) with a 1Y correlation of 0.10, roughly unchanged from 0.11 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| AbbVie Inc. | 0.10 | 0.11 | 0.11 | 62 | Healthcare | |
| Huntington Ingalls Industries, Inc | 0.17 | 0.25 | 0.27 | 62 | Industrials | |
| Saia, Inc. | 0.25 | 0.31 | 0.35 | 80 | Industrials | |
| Hope Bancorp, Inc. | 0.45 | 0.50 | 0.49 | 68 | Financial Services |
Build a portfolio that complements PFSI
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