Looking to balance out your exposure to VSEC? The ETFs below have the lowest correlation with VSEC — they tend to move on their own, which can help reduce risk when VSEC drops. The stock ideas table highlights individual companies that behave independently from VSEC.
Best Diversifiers for VSEC
1 ETFs have low correlation with VSEC (below 0.3), 0 of which are negatively correlated. The least correlated is iMGP DBi Managed Futures Strategy ETF (DBMF) (Systematic Trend) with a 1Y correlation of 0.11, roughly unchanged from 0.05 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| iMGP DBi Managed Futures Strategy ETF | 0.11 | 0.15 | 0.05 | 74 | Systematic Trend | VSEC vs DBMF | |
| iShares Latin American 40 ETF | 0.40 | 0.34 | 0.34 | 52 | Latin America Equities | VSEC vs ILF | |
| Vanguard S&P 500 ETF | 0.49 | 0.49 | 0.51 | 59 | S&P 500 | VSEC vs VOO | |
| State Street SPDR S&P 500 ETF | 0.49 | 0.49 | 0.51 | 59 | S&P 500 | VSEC vs SPY |
Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from VSEC, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to VSEC and solid risk/return profiles. The least correlated is Lumentum Holdings Inc. (LITE) (Technology) with a 1Y correlation of 0.14, down from 0.31 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Lumentum Holdings Inc. | 0.14 | 0.26 | 0.31 | 99 | Technology | |
| West Pharmaceutical Services, Inc. | 0.16 | 0.23 | 0.27 | 79 | Healthcare | |
| Century Aluminum Company | 0.19 | 0.25 | 0.32 | 92 | Basic Materials | |
| Aurinia Pharmaceuticals Inc. | 0.24 | 0.22 | 0.25 | 94 | Healthcare | |
| Sandisk Corporation | 0.27 | 0.27 | 0.27 | 100 | Technology |
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