Looking to balance out your exposure to RS? The ETFs below have the lowest correlation with RS — they tend to move on their own, which can help reduce risk when RS drops. The stock ideas table highlights individual companies that behave independently from RS.
Best Diversifiers for RS
0 ETFs have low correlation with RS (below 0.3), 0 of which are negatively correlated. The least correlated is Xtrackers MSCI EAFE High Dividend Yield Equity ETF (HDEF) (Foreign Large Cap Equities) with a 1Y correlation of 0.36, roughly unchanged from 0.43 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Xtrackers MSCI EAFE High Dividend Yield Equity ETF | 0.36 | 0.38 | 0.44 | 62 | Foreign Large Cap Equities, Dividend | RS vs HDEF | |
| WisdomTree U.S. LargeCap Dividend Fund | 0.43 | 0.52 | 0.54 | 88 | Large Cap Value Equities, Dividend | RS vs DLN | |
| Schwab U.S. Dividend Equity ETF | 0.46 | 0.53 | 0.56 | 89 | Dividend | RS vs SCHD |
Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from RS, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to RS and solid risk/return profiles. The least correlated is Sunoco LP (SUN) (Energy) 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 |
|---|---|---|---|---|---|---|
| Sunoco LP | -0.05 | 0.13 | 0.23 | 86 | Energy | |
| Restaurant Brands International Inc. | 0.06 | 0.25 | 0.31 | 64 | Consumer Cyclical | |
| AbbVie Inc. | 0.08 | 0.15 | 0.16 | 80 | Healthcare | |
| Amazon.com, Inc | 0.09 | 0.19 | 0.24 | 57 | Consumer Cyclical | |
| Broadcom Inc. | 0.11 | 0.19 | 0.27 | 71 | Technology |
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