Looking to balance out your exposure to TM? The ETFs below have the lowest correlation with TM — they tend to move on their own, which can help reduce risk when TM drops. The stock ideas table highlights individual companies that behave independently from TM.
Best Diversifiers for TM
58 ETFs have low correlation with TM (below 0.3), 8 of which are negatively correlated. The least correlated is WisdomTree Floating Rate Treasury Fund (USFR) (Government Bonds) with a 1Y correlation of -0.06, roughly unchanged from -0.01 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| WisdomTree Floating Rate Treasury Fund | -0.06 | -0.00 | -0.01 | 100 | Government Bonds, Ultrashort Bond | TM vs USFR | |
| Vanguard 0-3 Month Treasury Bill ETF | -0.05 | — | — | 100 | Ultrashort Bond | TM vs VBIL | |
| Vanguard Short-Term Inflation-Protected Securities... | -0.05 | 0.04 | 0.08 | 83 | Inflation-Protected Bonds | TM vs VTIP | |
| PIMCO Enhanced Short Maturity Active ETF | -0.04 | 0.04 | 0.08 | 100 | Ultrashort Bond | TM vs MINT | |
| iShares 0-3 Month Treasury Bond ETF | -0.03 | -0.03 | -0.01 | 100 | Ultrashort Bond | TM vs SGOV |
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Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from TM, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to TM and solid risk/return profiles. The least correlated is Altria Group, Inc. (MO) (Consumer Defensive) with a 1Y correlation of -0.08, down from 0.09 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Altria Group, Inc. | -0.08 | -0.01 | 0.09 | 72 | Consumer Defensive | |
| Verizon Communications Inc. | -0.07 | 0.01 | 0.10 | 66 | Communication Services | |
| ConocoPhillips Company | -0.04 | 0.07 | 0.14 | 65 | Energy | |
| Duke Energy Corporation | -0.03 | 0.01 | 0.06 | 62 | Utilities | |
| The Southern Company | -0.03 | -0.00 | 0.06 | 55 | Utilities |
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Build a portfolio that complements TM
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