Looking to balance out your exposure to RF? The ETFs below have the lowest correlation with RF — they tend to move on their own, which can help reduce risk when RF drops. The stock ideas table highlights individual companies that behave independently from RF.
Best Diversifiers for RF
0 ETFs have low correlation with RF (below 0.3), 0 of which are negatively correlated. The least correlated is Vanguard FTSE Developed Markets ETF (VEA) (Foreign Large Cap Equities) with a 1Y correlation of 0.35, down from 0.52 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Vanguard FTSE Developed Markets ETF | 0.35 | 0.44 | 0.52 | 59 | Foreign Large Cap Equities | RF vs VEA | |
| Schwab U.S. Dividend Equity ETF | 0.54 | 0.63 | 0.67 | 80 | Dividend | RF vs SCHD |
Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from RF, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to RF and solid risk/return profiles. The least correlated is Oracle Corporation (ORCL) (Technology) with a 1Y correlation of -0.05, down from 0.23 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Oracle Corporation | -0.05 | 0.12 | 0.23 | 58 | Technology | |
| BP p.l.c. | -0.01 | 0.17 | 0.32 | 87 | Energy | |
| Palo Alto Networks, Inc. | 0.02 | 0.12 | 0.18 | 67 | Technology | |
| Shell plc | 0.04 | 0.18 | 0.29 | 80 | Energy | |
| Eli Lilly and Company | 0.05 | 0.05 | 0.05 | 72 | Healthcare |
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