Looking to balance out your exposure to TPL? The ETFs below have the lowest correlation with TPL — they tend to move on their own, which can help reduce risk when TPL drops. The stock ideas table highlights individual companies that behave independently from TPL.
Best Diversifiers for TPL
239 ETFs have low correlation with TPL (below 0.3), 14 of which are negatively correlated. The least correlated is WisdomTree Floating Rate Treasury Fund (USFR) (Government Bonds) with a 1Y correlation of -0.13, roughly unchanged from -0.05 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| WisdomTree Floating Rate Treasury Fund | -0.13 | -0.05 | -0.05 | 100 | Government Bonds, Ultrashort Bond | TPL vs USFR | |
| iShares 0-1 Year Treasury Bond ETF | -0.07 | -0.04 | -0.04 | 100 | Government Bonds, Ultrashort Bond | TPL vs SHV | |
| Vanguard Short-Term Tax-Exempt Bond ETF | -0.07 | 0.01 | — | 75 | Municipal Bonds | TPL vs VTES | |
| ProShares UltraShort Yen | -0.06 | -0.01 | 0.02 | 73 | Leveraged Currency | TPL vs YCS | |
| iShares Treasury Floating Rate Bond ETF | -0.05 | 0.02 | -0.02 | 100 | Government Bonds, Ultrashort Bond | TPL vs TFLO |
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Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from TPL, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to TPL and solid risk/return profiles. The least correlated is Palo Alto Networks, Inc. (PANW) (Technology) with a 1Y correlation of -0.06, down from 0.10 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Palo Alto Networks, Inc. | -0.06 | 0.06 | 0.10 | 71 | Technology | |
| Monster Beverage Corporation | -0.06 | 0.01 | 0.09 | 89 | Consumer Defensive | |
| Apple Inc | -0.05 | 0.04 | 0.15 | 83 | Technology | |
| The Coca-Cola Company | -0.04 | -0.02 | 0.05 | 76 | Consumer Defensive | |
| Murphy USA Inc. | -0.03 | 0.09 | 0.17 | 67 | Consumer Cyclical |
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