Looking to diversify beyond TAGS? The ETFs below have the lowest correlation with TAGS — they tend to move on their own, which can help reduce risk when the rest of your portfolio drops. The stock ideas table highlights individual companies that behave independently from TAGS.
Best Diversifiers for TAGS
1562 ETFs have low correlation with TAGS (below 0.3), 1368 of which are negatively correlated. The least correlated is Invesco BulletShares 2032 Municipal Bond ETF (BSMW) (Municipal Bonds) with a 1Y correlation of -0.27, down from -0.02 over 3 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Invesco BulletShares 2032 Municipal Bond ETF | -0.27 | -0.02 | — | 64 | Municipal Bonds | TAGS vs BSMW | |
| Franklin Ultra Short Bond ETF | -0.23 | -0.12 | -0.06 | 92 | Ultrashort Bond | TAGS vs FLUD | |
| Bondbloxx IR+M Tax-Aware Short Duration ETF | -0.23 | -0.07 | -0.07 | 77 | Municipal Bonds | TAGS vs TAXX | |
| KraneShares Asia Pacific High Income Bond ETF | -0.22 | -0.08 | -0.02 | 78 | Emerging Markets Bonds | TAGS vs KHYB | |
| iShares National AMT-Free Muni Bond ETF | -0.22 | -0.06 | -0.04 | 67 | Municipal Bonds | TAGS vs MUB |
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Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from TAGS, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to TAGS and solid risk/return profiles. The least correlated is Amazon.com, Inc (AMZN) (Consumer Cyclical) with a 1Y correlation of 0.03, roughly unchanged from 0.02 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Amazon.com, Inc | 0.03 | 0.02 | 0.02 | 52 | Consumer Cyclical |
Build a portfolio that complements TAGS
Add TAGS to the Diversification Analyzer to see how it overlaps with your other holdings and which assets balance it best.
Analyze a portfolio with TAGS