Looking to balance out your exposure to SCHW? The ETFs below have the lowest correlation with SCHW — they tend to move on their own, which can help reduce risk when SCHW drops. The stock ideas table highlights individual companies that behave independently from SCHW.
Best Diversifiers for SCHW
250 ETFs have low correlation with SCHW (below 0.3), 15 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 -0.11, down from -0.01 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Vanguard Short-Term Inflation-Protected Securities... | -0.11 | -0.00 | -0.01 | 91 | Inflation-Protected Bonds | SCHW vs VTIP | |
| SPDR Bloomberg 1-3 Month T-Bill ETF | -0.10 | -0.08 | -0.04 | 100 | Government Bonds, Ultrashort Bond | SCHW vs BIL | |
| iShares 0-5 Year TIPS Bond ETF | -0.10 | 0.01 | -0.00 | 91 | Inflation-Protected Bonds | SCHW vs STIP | |
| iShares 0-1 Year Treasury Bond ETF | -0.08 | -0.07 | -0.06 | 100 | Government Bonds, Ultrashort Bond | SCHW vs SHV | |
| Vanguard Short-Term Treasury ETF | -0.08 | -0.05 | -0.09 | 87 | Government Bonds, Short-Term Bond | SCHW vs VGSH |
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Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from SCHW, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to SCHW and solid risk/return profiles. The least correlated is The Coca-Cola Company (KO) (Consumer Defensive) with a 1Y correlation of -0.10, down from 0.17 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| The Coca-Cola Company | -0.10 | 0.06 | 0.17 | 83 | Consumer Defensive | |
| PepsiCo, Inc. | -0.08 | 0.06 | 0.14 | 53 | Consumer Defensive | |
| Duke Energy Corporation | -0.07 | 0.08 | 0.12 | 66 | Utilities | |
| W. P. Carey Inc. | -0.06 | 0.17 | 0.22 | 80 | Real Estate | |
| Monster Beverage Corporation | -0.05 | 0.10 | 0.18 | 93 | Consumer Defensive |
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