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
2 ETFs have low correlation with VSEC (below 0.3), 1 of which are negatively correlated. The least correlated is State Street Energy Select Sector SPDR ETF (XLE) (Energy Equities) with a 1Y correlation of -0.05, down from 0.24 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| State Street Energy Select Sector SPDR ETF | -0.05 | 0.19 | 0.24 | 63 | Energy Equities | VSEC vs XLE | |
| iMGP DBi Managed Futures Strategy ETF | 0.14 | 0.17 | 0.05 | 83 | Systematic Trend | VSEC vs DBMF | |
| iShares Latin American 40 ETF | 0.38 | 0.33 | 0.34 | 54 | Latin America Equities | VSEC vs ILF | |
| Vanguard S&P 500 ETF | 0.47 | 0.49 | 0.51 | 70 | S&P 500 | VSEC vs VOO | |
| State Street SPDR S&P 500 ETF | 0.48 | 0.49 | 0.51 | 70 | 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 Nutrien Ltd. (NTR) (Basic Materials) with a 1Y correlation of -0.02, down from 0.22 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Nutrien Ltd. | -0.02 | 0.16 | 0.22 | 58 | Basic Materials | |
| West Pharmaceutical Services, Inc. | 0.16 | 0.23 | 0.27 | 76 | Healthcare | |
| Lumentum Holdings Inc. | 0.17 | 0.27 | 0.31 | 99 | Technology | |
| Century Aluminum Company | 0.19 | 0.27 | 0.33 | 96 | Basic Materials | |
| Aurinia Pharmaceuticals Inc. | 0.23 | 0.22 | 0.24 | 89 | Healthcare |
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