Looking to balance out your exposure to TSM? The ETFs below have the lowest correlation with TSM — they tend to move on their own, which can help reduce risk when TSM drops. The stock ideas table highlights individual companies that behave independently from TSM.
Best Diversifiers for TSM
64 ETFs have low correlation with TSM (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 -0.19, down from -0.04 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| WisdomTree Floating Rate Treasury Fund | -0.19 | -0.10 | -0.04 | 100 | Government Bonds, Ultrashort Bond | TSM vs USFR | |
| iShares 0-3 Month Treasury Bond ETF | -0.15 | -0.03 | -0.00 | 100 | Ultrashort Bond | TSM vs SGOV | |
| First Trust Morningstar Dividend Leaders Index Fun... | -0.10 | 0.07 | 0.18 | 69 | Large Cap Value Equities, Dividend | TSM vs FDL | |
| iShares Core High Dividend ETF | -0.10 | 0.03 | 0.16 | 70 | Dividend, Large Cap Value Equities | TSM vs HDV | |
| SPDR Bloomberg 1-3 Month T-Bill ETF | -0.10 | -0.05 | 0.03 | 100 | Government Bonds, Ultrashort Bond | TSM vs BIL |
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Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from TSM, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to TSM and solid risk/return profiles. The least correlated is Chubb Limited (CB) (Financial Services) with a 1Y correlation of -0.31, down from -0.02 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Chubb Limited | -0.31 | -0.17 | -0.02 | 69 | Financial Services | |
| Consolidated Edison, Inc. | -0.29 | -0.24 | -0.14 | 61 | Utilities | |
| Altria Group, Inc. | -0.28 | -0.21 | -0.09 | 72 | Consumer Defensive | |
| Fortis Inc | -0.27 | -0.04 | 0.03 | 85 | Utilities | |
| Aflac Incorporated | -0.27 | -0.08 | 0.09 | 68 | Financial Services |
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Build a portfolio that complements TSM
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