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
252 ETFs have low correlation with TPL (below 0.3), 17 of which are negatively correlated. The least correlated is WisdomTree Floating Rate Treasury Fund (USFR) (Government Bonds) with a 1Y correlation of -0.10, 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 | -0.10 | -0.05 | -0.05 | 100 | Government Bonds, Ultrashort Bond | TPL vs USFR | |
| iShares 0-1 Year Treasury Bond ETF | -0.08 | -0.03 | -0.05 | 100 | Government Bonds, Ultrashort Bond | TPL vs SHV | |
| PGIM AAA CLO ETF | -0.08 | — | — | 99 | CLO | TPL vs PAAA | |
| Vanguard Ultra-Short Bond ETF | -0.06 | -0.03 | -0.01 | 99 | Ultrashort Bond | TPL vs VUSB | |
| Vanguard Short-Term Tax-Exempt Bond ETF | -0.06 | 0.00 | — | 69 | Municipal Bonds | TPL vs VTES |
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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 Apple Inc (AAPL) (Technology) with a 1Y correlation of -0.11, down from 0.14 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Apple Inc | -0.11 | 0.03 | 0.14 | 93 | Technology | |
| Colgate-Palmolive Company | -0.09 | -0.08 | -0.02 | 56 | Consumer Defensive | |
| HCA Healthcare, Inc. | -0.09 | 0.05 | 0.12 | 50 | Healthcare | |
| Catalyst Pharmaceuticals, Inc. | -0.07 | 0.16 | 0.23 | 86 | Healthcare | |
| Monster Beverage Corporation | -0.06 | 0.02 | 0.09 | 94 | Consumer Defensive |
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