Looking to balance out your exposure to STEM? The ETFs below have the lowest correlation with STEM — they tend to move on their own, which can help reduce risk when STEM drops. The stock ideas table highlights individual companies that behave independently from STEM.
Best Diversifiers for STEM
1 ETFs have low correlation with STEM (below 0.3), 0 of which are negatively correlated. The least correlated is Vanguard Emerging Markets Government Bond ETF (VWOB) (Emerging Markets Bonds) with a 1Y correlation of 0.27, roughly unchanged from 0.27 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Vanguard Emerging Markets Government Bond ETF | 0.27 | 0.26 | 0.27 | 60 | Emerging Markets Bonds | STEM vs VWOB | |
| SPDR S&P Metals & Mining ETF | 0.45 | 0.38 | 0.38 | 77 | Materials | STEM vs XME | |
| Global X Russell 2000 Covered Call ETF | 0.47 | 0.45 | 0.49 | 66 | Hedge Fund | STEM vs RYLD |
Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from STEM, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to STEM and solid risk/return profiles. The least correlated is Duke Energy Corporation (DUK) (Utilities) with a 1Y correlation of -0.11, roughly unchanged from -0.01 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Duke Energy Corporation | -0.11 | -0.01 | -0.01 | 53 | Utilities | |
| Repsol SA | -0.07 | 0.07 | 0.11 | 95 | Energy | |
| Xcel Energy Inc. | 0.01 | 0.06 | 0.05 | 63 | Utilities | |
| Black Hills Corporation | 0.07 | 0.18 | 0.13 | 77 | Utilities | |
| Sprott Physical Gold Trust | 0.09 | 0.05 | 0.05 | 70 | Financial Services |
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