Looking to balance out your exposure to STEP? The ETFs below have the lowest correlation with STEP — they tend to move on their own, which can help reduce risk when STEP drops. The stock ideas table highlights individual companies that behave independently from STEP.
Best Diversifiers for STEP
0 ETFs have low correlation with STEP (below 0.3), 0 of which are negatively correlated. The least correlated is Invesco S&P 500 Momentum ETF (SPMO) (Momentum) with a 1Y correlation of 0.33, down from 0.50 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Invesco S&P 500 Momentum ETF | 0.33 | 0.44 | 0.50 | 75 | Momentum, S&P 500 | STEP vs SPMO | |
| Invesco QQQ ETF | 0.36 | 0.42 | 0.53 | 74 | Nasdaq-100 | STEP vs QQQ | |
| State Street SPDR S&P 500 ETF | 0.44 | 0.49 | 0.59 | 74 | S&P 500 | STEP vs SPY |
Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from STEP, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to STEP and solid risk/return profiles. The least correlated is Broadcom Inc. (AVGO) (Technology) with a 1Y correlation of 0.20, down from 0.38 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Broadcom Inc. | 0.20 | 0.28 | 0.38 | 76 | Technology | |
| Arista Networks, Inc. | 0.24 | 0.31 | 0.40 | 77 | Technology | |
| JPMorgan Chase & Co. | 0.32 | 0.38 | 0.44 | 66 | Financial Services |
Build a portfolio that complements STEP
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