Looking to balance out your exposure to SEM? The ETFs below have the lowest correlation with SEM — they tend to move on their own, which can help reduce risk when SEM drops. The stock ideas table highlights individual companies that behave independently from SEM.
Best Diversifiers for SEM
1 ETFs have low correlation with SEM (below 0.3), 0 of which are negatively correlated. The least correlated is Vanguard S&P 500 ETF (VOO) (S&P 500) with a 1Y correlation of 0.21, down from 0.45 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Vanguard S&P 500 ETF | 0.21 | 0.36 | 0.45 | 70 | S&P 500 | SEM vs VOO |
Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from SEM, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to SEM and solid risk/return profiles. The least correlated is Welltower Inc. (WELL) (Real Estate) with a 1Y correlation of 0.06, down from 0.32 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Welltower Inc. | 0.06 | 0.26 | 0.32 | 79 | Real Estate | |
| Apple Inc | 0.07 | 0.17 | 0.29 | 89 | Technology | |
| Brookdale Senior Living Inc. | 0.19 | 0.33 | 0.39 | 86 | Healthcare | |
| UnitedHealth Group Incorporated | 0.26 | 0.18 | 0.23 | 61 | Healthcare | |
| The Ensign Group, Inc. | 0.32 | 0.43 | 0.49 | 52 | Healthcare |
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