Looking to balance out your exposure to VAL? The ETFs below have the lowest correlation with VAL — they tend to move on their own, which can help reduce risk when VAL drops. The stock ideas table highlights individual companies that behave independently from VAL.
Best Diversifiers for VAL
6 ETFs have low correlation with VAL (below 0.3), 0 of which are negatively correlated. The least correlated is iShares 0-5 Year TIPS Bond ETF (STIP) (Inflation-Protected Bonds) with a 1Y correlation of 0.03, roughly unchanged from 0.10 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| iShares 0-5 Year TIPS Bond ETF | 0.03 | 0.05 | 0.10 | 93 | Inflation-Protected Bonds | VAL vs STIP | |
| Vanguard S&P 500 ETF | 0.16 | 0.24 | 0.31 | 70 | S&P 500 | VAL vs VOO | |
| Vanguard FTSE Emerging Markets ETF | 0.18 | 0.29 | 0.32 | 56 | Emerging Markets Equities | VAL vs VWO | |
| Vanguard FTSE Pacific ETF | 0.18 | 0.28 | 0.33 | 80 | Asia Pacific Equities | VAL vs VPL | |
| Vanguard FTSE Developed Markets ETF | 0.19 | 0.30 | 0.35 | 59 | Foreign Large Cap Equities | VAL vs VEA |
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Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from VAL, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to VAL and solid risk/return profiles. The least correlated is Copa Holdings, S.A. (CPA) (Industrials) with a 1Y correlation of 0.00, down from 0.18 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Copa Holdings, S.A. | 0.00 | 0.15 | 0.18 | 64 | Industrials | |
| Amazon.com, Inc | 0.04 | 0.11 | 0.16 | 60 | Consumer Cyclical | |
| Bruker Corporation | 0.05 | 0.13 | 0.15 | 71 | Healthcare | |
| Altria Group, Inc. | 0.05 | 0.05 | 0.14 | 69 | Consumer Defensive | |
| PepsiCo, Inc. | 0.06 | 0.05 | 0.05 | 56 | Consumer Defensive |
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