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
81 ETFs have low correlation with TSM (below 0.3), 29 of which are negatively correlated. The least correlated is WisdomTree Floating Rate Treasury Fund (USFR) (Government Bonds) with a 1Y correlation of -0.22, down from -0.05 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| WisdomTree Floating Rate Treasury Fund | -0.22 | -0.11 | -0.05 | 100 | Government Bonds, Ultrashort Bond | TSM vs USFR | |
| iShares Core High Dividend ETF | -0.17 | -0.02 | 0.15 | 74 | Dividend, Large Cap Value Equities | TSM vs HDV | |
| Global X 1-3 Month T-Bill ETF | -0.17 | -0.04 | — | 100 | Ultrashort Bond | TSM vs CLIP | |
| First Trust Morningstar Dividend Leaders Index Fun... | -0.16 | 0.03 | 0.17 | 73 | Large Cap Value Equities, Dividend | TSM vs FDL | |
| iShares 0-3 Month Treasury Bond ETF | -0.15 | -0.04 | -0.01 | 100 | Ultrashort Bond | TSM vs SGOV |
To view more results, upgrade your current subscription plan.
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 Arch Capital Group Ltd. (ACGL) (Financial Services) with a 1Y correlation of -0.34, down from -0.01 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Arch Capital Group Ltd. | -0.34 | -0.17 | -0.01 | 62 | Financial Services | |
| Chubb Limited | -0.32 | -0.19 | -0.02 | 83 | Financial Services | |
| Consolidated Edison, Inc. | -0.32 | -0.26 | -0.14 | 69 | Utilities | |
| Aflac Incorporated | -0.31 | -0.10 | 0.08 | 80 | Financial Services | |
| Altria Group, Inc. | -0.30 | -0.22 | -0.10 | 78 | Consumer Defensive |
To view more results, upgrade your current subscription plan.
Build a portfolio that complements TSM
Add TSM to the Diversification Analyzer to see how it overlaps with your other holdings and which assets balance it best.
Analyze a portfolio with TSM