Looking to balance out your exposure to RF? The ETFs below have historically moved differently from RF, which may reduce portfolio volatility when combined in a suitable allocation. The stock ideas table highlights individual companies with the same low-correlation characteristics. Correlation can change and does not guarantee that one asset will rise when another falls.
Best Diversifiers for RF
1 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 0.29, down from 0.50 over 5 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Vanguard FTSE Developed Markets ETF | 0.29 | 0.40 | 0.50 | 68 | Foreign Large Cap Equities | RF vs VEA | |
| State Street SPDR S&P 500 ETF | 0.37 | 0.45 | 0.54 | 71 | S&P 500 | RF vs SPY | |
| Schwab U.S. Dividend Equity ETF | 0.52 | 0.62 | 0.67 | 94 | Dividend | RF vs SCHD |
Low-Correlation Stock Ideas
The table shows companies with at least $1B in market capitalization, historical correlation data for RF, and a Risk / Return Rank of 50 or higher. Treat them as research candidates rather than evidence that they will offset a future decline. The least correlated is BP p.l.c. (BP) (Energy) with a 1Y correlation of -0.07, down from 0.28 over 5 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| BP p.l.c. | -0.07 | 0.11 | 0.28 | 71 | Energy | |
| EOG Resources, Inc. | -0.03 | 0.18 | 0.30 | 61 | Energy | |
| Chevron Corporation | -0.03 | 0.18 | 0.30 | 72 | Energy | |
| Shell plc | -0.01 | 0.13 | 0.27 | 74 | Energy | |
| Diamondback Energy, Inc. | -0.01 | 0.19 | 0.33 | 72 | Energy |
To view more results, upgrade your current subscription plan.
Build a portfolio that complements RF
Add RF to the Diversification Analyzer to see how it overlaps with your other holdings and which assets balance it best.
Analyze a portfolio with RF