Looking to balance out your exposure to STEM? The ETFs below have historically moved differently from STEM, 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 STEM
0 ETFs have low correlation with STEM (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 0.56, up from 0.43 over 5 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Vanguard S&P 500 ETF | 0.56 | 0.37 | 0.43 | 68 | S&P 500 | STEM vs VOO | |
| Global X Russell 2000 Covered Call ETF | 0.56 | 0.45 | 0.50 | 90 | Derivative Income, Small Cap Blend Equities | STEM vs RYLD |
Low-Correlation Stock Ideas
The table shows companies with at least $1B in market capitalization, historical correlation data for STEM, 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 Consolidated Edison, Inc. (ED) (Utilities) with a 1Y correlation of -0.22, down from -0.01 over 5 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Consolidated Edison, Inc. | -0.22 | -0.04 | -0.02 | 59 | Utilities | |
| Duke Energy Corporation | -0.15 | -0.04 | -0.01 | 56 | Utilities | |
| Repsol SA | -0.10 | 0.04 | 0.10 | 97 | Energy | |
| Xcel Energy Inc. | -0.03 | 0.03 | 0.04 | 61 | Utilities | |
| Black Hills Corporation | 0.01 | 0.14 | 0.13 | 81 | Utilities |
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