Looking to balance out your exposure to VMI? The ETFs below have the lowest correlation with VMI — they tend to move on their own, which can help reduce risk when VMI drops. The stock ideas table highlights individual companies that behave independently from VMI.
Best Diversifiers for VMI
0 ETFs have low correlation with VMI (below 0.3), 0 of which are negatively correlated. The least correlated is Schwab U.S. Dividend Equity ETF (SCHD) (Dividend) with a 1Y correlation of 0.35, down from 0.54 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Schwab U.S. Dividend Equity ETF | 0.35 | 0.49 | 0.54 | 86 | Dividend | VMI vs SCHD | |
| Invesco QQQ ETF | 0.57 | 0.46 | 0.48 | 58 | Nasdaq-100 | VMI vs QQQ | |
| Vanguard S&P 500 ETF | 0.62 | 0.55 | 0.57 | 66 | S&P 500 | VMI vs VOO | |
| State Street SPDR S&P 500 ETF | 0.62 | 0.55 | 0.57 | 66 | S&P 500 | VMI vs SPY |
Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from VMI, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to VMI and solid risk/return profiles. The least correlated is Essential Utilities, Inc. (WTRG) (Utilities) with a 1Y correlation of -0.10, down from 0.19 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Essential Utilities, Inc. | -0.10 | 0.09 | 0.19 | 55 | Utilities | |
| California Water Service Group | -0.10 | 0.10 | 0.19 | 60 | Utilities | |
| American States Water Company | -0.05 | 0.14 | 0.20 | 70 | Utilities | |
| Berkshire Hathaway Inc. | 0.05 | 0.27 | 0.37 | 53 | Financial Services | |
| CVS Health Corporation | 0.15 | 0.22 | 0.24 | 92 | Healthcare |
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