Looking to balance out your exposure to SCHW? The ETFs below have historically moved differently from SCHW, 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 SCHW
255 ETFs have low correlation with SCHW (below 0.3), 25 of which are negatively correlated. The least correlated is Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) (Inflation-Protected Bonds) with a 1Y correlation of -0.14, down from -0.01 over 5 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Vanguard Short-Term Inflation-Protected Securities... | -0.15 | -0.01 | -0.01 | 92 | Inflation-Protected Bonds | SCHW vs VTIP | |
| iShares 0-5 Year TIPS Bond ETF | -0.12 | -0.00 | -0.01 | 93 | Inflation-Protected Bonds | SCHW vs STIP | |
| Vanguard 0-3 Month Treasury Bill ETF | -0.10 | — | — | 100 | Ultrashort Bond | SCHW vs VBIL | |
| SPDR Bloomberg 1-3 Month T-Bill ETF | -0.10 | -0.09 | -0.04 | 100 | Government Bonds, Ultrashort Bond | SCHW vs BIL | |
| Schwab Short-Term U.S. Treasury ETF | -0.10 | -0.06 | -0.08 | 91 | Government Bonds, Short-Term Bond | SCHW vs SCHO |
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Low-Correlation Stock Ideas
The table shows companies with at least $1B in market capitalization, historical correlation data for SCHW, 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 Petróleo Brasileiro S.A. - Petrobras (PBR) (Energy) with a 1Y correlation of -0.09, down from 0.17 over 5 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Petróleo Brasileiro S.A. - Petrobras | -0.09 | 0.09 | 0.17 | 85 | Energy | |
| The Coca-Cola Company | -0.09 | 0.05 | 0.17 | 90 | Consumer Defensive | |
| Duke Energy Corporation | -0.08 | 0.08 | 0.12 | 56 | Utilities | |
| W. P. Carey Inc. | -0.07 | 0.16 | 0.22 | 79 | Real Estate | |
| Intel Corporation | -0.07 | 0.14 | 0.23 | 98 | Technology |
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