Looking to balance out your exposure to RM? The ETFs below have the lowest correlation with RM — they tend to move on their own, which can help reduce risk when RM drops. The stock ideas table highlights individual companies that behave independently from RM.
Best Diversifiers for RM
0 ETFs have low correlation with RM (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 0.32, roughly unchanged from 0.38 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Vanguard Information Technology ETF | 0.32 | 0.32 | 0.38 | 76 | Technology Equities | RM vs VGT | |
| Invesco S&P 500 Momentum ETF | 0.36 | 0.32 | 0.37 | 75 | Momentum, S&P 500 | RM vs SPMO | |
| State Street SPDR S&P 500 ETF | 0.46 | 0.40 | 0.45 | 74 | S&P 500 | RM vs SPY |
Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from RM, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to RM and solid risk/return profiles. The least correlated is Credo Technology Group Holding Ltd (CRDO) (Technology) with a 1Y correlation of 0.10, down from 0.26 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Credo Technology Group Holding Ltd | 0.10 | 0.20 | 0.26 | 85 | Technology | |
| Nextracker Inc | 0.11 | 0.21 | 0.22 | 91 | Technology | |
| Fabrinet | 0.14 | 0.23 | 0.29 | 93 | Technology | |
| Helix Energy Solutions Group, Inc. | 0.15 | 0.27 | 0.28 | 72 | Energy | |
| IonQ, Inc. | 0.16 | 0.25 | 0.28 | 64 | Technology |
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