Looking to balance out your exposure to TSM? The ETFs below have historically moved differently from TSM, 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 TSM
98 ETFs have low correlation with TSM (below 0.3), 41 of which are negatively correlated. The least correlated is WisdomTree Floating Rate Treasury Fund (USFR) (Government Bonds) with a 1Y correlation of -0.21, down from -0.05 over 5 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| WisdomTree Floating Rate Treasury Fund | -0.21 | -0.12 | -0.05 | 100 | Government Bonds, Ultrashort Bond | TSM vs USFR | |
| First Trust Morningstar Dividend Leaders Index Fun... | -0.20 | 0.02 | 0.16 | 92 | Large Cap Value Equities, Dividend | TSM vs FDL | |
| iShares Core High Dividend ETF | -0.20 | -0.03 | 0.14 | 91 | Dividend, Large Cap Value Equities | TSM vs HDV | |
| Invesco S&P 500® High Dividend Low Volatility ETF | -0.17 | -0.01 | 0.13 | 55 | Dividend, S&P 500, Low Volatility | TSM vs SPHD | |
| Global X 1-3 Month T-Bill ETF | -0.16 | -0.04 | — | 100 | Ultrashort Bond | TSM vs CLIP |
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Low-Correlation Stock Ideas
The table shows companies with at least $1B in market capitalization, historical correlation data for TSM, and a Risk / Return Rank of 50 or higher. Treat them as research candidates rather than evidence that they will offset a future decline. The least correlated is Arch Capital Group Ltd. (ACGL) (Financial Services) with a 1Y correlation of -0.37, down from -0.02 over 5 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Arch Capital Group Ltd. | -0.37 | -0.18 | -0.02 | 65 | Financial Services | |
| Aflac Incorporated | -0.33 | -0.11 | 0.07 | 89 | Financial Services | |
| Altria Group, Inc. | -0.33 | -0.23 | -0.11 | 66 | Consumer Defensive | |
| Consolidated Edison, Inc. | -0.32 | -0.26 | -0.14 | 56 | Utilities | |
| Chubb Limited | -0.32 | -0.18 | -0.03 | 87 | Financial Services |
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