Looking to diversify beyond TAXT? The ETFs below have historically moved differently from TAXT, 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 TAXT
1 ETFs have low correlation with TAXT (below 0.3), 0 of which are negatively correlated. The least correlated is FlexShares US Quality Low Volatility Index Fund (QLV) (Quality Factor) with a 1Y correlation of 0.29, roughly unchanged from 0.29 over 5 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| FlexShares US Quality Low Volatility Index Fund | 0.29 | 0.29 | 0.29 | 80 | Quality Factor, Low Volatility | TAXT vs QLV | |
| Xtrackers California Municipal Bond ETF | 0.54 | 0.54 | 0.54 | 79 | Municipal Bonds | TAXT vs CA | |
| Vanguard Short Duration Tax-Exempt Bond ETF | 0.72 | — | — | 78 | Municipal Bonds, Short-Term Bond, Actively Managed | TAXT vs VSDM | |
| Avantis Core Municipal Fixed Income ETF | 0.76 | 0.76 | 0.76 | 65 | Municipal Bonds | TAXT vs AVMU | |
| Invesco National AMT-Free Municipal Bond ETF | 0.80 | 0.80 | 0.80 | 65 | Municipal Bonds | TAXT vs PZA |
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