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
76 ETFs have low correlation with TSM (below 0.3), 20 of which are negatively correlated. The least correlated is United States Oil Fund LP (USO) (Oil & Gas) with a 1Y correlation of -0.20, down from 0.07 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| United States Oil Fund LP | -0.20 | -0.00 | 0.07 | 66 | Oil & Gas | TSM vs USO | |
| iShares 0-3 Month Treasury Bond ETF | -0.17 | -0.03 | -0.01 | 100 | Ultrashort Bond | TSM vs SGOV | |
| ProShares Ultra Bloomberg Crude Oil | -0.17 | 0.03 | 0.08 | 54 | Leveraged Commodities | TSM vs UCO | |
| State Street Energy Select Sector SPDR ETF | -0.11 | 0.05 | 0.15 | 63 | Energy Equities | TSM vs XLE | |
| Invesco DB Commodity Index Tracking Fund | -0.10 | 0.08 | 0.13 | 75 | Commodities | TSM vs DBC |
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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 Fortis Inc (FTS) (Utilities) with a 1Y correlation of -0.27, down from 0.03 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Fortis Inc | -0.27 | -0.03 | 0.03 | 76 | Utilities | |
| Chubb Limited | -0.26 | -0.15 | -0.00 | 51 | Financial Services | |
| Cboe Global Markets, Inc. | -0.26 | -0.25 | -0.08 | 68 | Financial Services | |
| Altria Group, Inc. | -0.24 | -0.18 | -0.08 | 69 | Consumer Defensive | |
| Aflac Incorporated | -0.24 | -0.06 | 0.10 | 62 | Financial Services |
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Build a portfolio that complements TSM
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