Looking to balance out your exposure to VKQ? The ETFs below have the lowest correlation with VKQ — they tend to move on their own, which can help reduce risk when VKQ drops. The stock ideas table highlights individual companies that behave independently from VKQ.
Best Diversifiers for VKQ
1 ETFs have low correlation with VKQ (below 0.3), 0 of which are negatively correlated. The least correlated is iShares Core S&P 500 ETF (IVV) (S&P 500) with a 1Y correlation of 0.25, roughly unchanged from 0.25 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| iShares Core S&P 500 ETF | 0.25 | 0.27 | 0.25 | 70 | S&P 500 | VKQ vs IVV | |
| Vanguard Short-Term Tax-Exempt Bond ETF Shares | 0.33 | 0.43 | — | 73 | Municipal Bonds | VKQ vs VTES | |
| SPDR Portfolio High Yield Bond ETF | 0.34 | 0.42 | 0.37 | 62 | High Yield Bonds | VKQ vs SPHY | |
| VanEck Vectors High-Yield Municipal Index ETF | 0.47 | 0.53 | 0.52 | 59 | Municipal Bonds | VKQ vs HYD | |
| iShares National AMT-Free Muni Bond ETF | 0.51 | 0.59 | 0.56 | 66 | Municipal Bonds | VKQ vs MUB |
Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from VKQ, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to VKQ and solid risk/return profiles. The least correlated is Nuveen AMT-Free Municipal Credit Income Fund (NVG) (Financial Services) with a 1Y correlation of 0.63, roughly unchanged from 0.69 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Nuveen AMT-Free Municipal Credit Income Fund | 0.63 | 0.71 | 0.69 | 74 | Financial Services |
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