Looking to diversify beyond VTIP? The ETFs below have the lowest correlation with VTIP — they tend to move on their own, which can help reduce risk when the rest of your portfolio drops. The stock ideas table highlights individual companies that behave independently from VTIP.
Best Diversifiers for VTIP
1418 ETFs have low correlation with VTIP (below 0.3), 123 of which are negatively correlated. The least correlated is Invesco DB US Dollar Index Bullish Fund (UUP) (Currency) with a 1Y correlation of -0.28, roughly unchanged from -0.32 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Invesco DB US Dollar Index Bullish Fund | -0.28 | -0.35 | -0.32 | 51 | Currency | VTIP vs UUP | |
| ProShares UltraShort Yen | -0.25 | -0.41 | -0.40 | 72 | Leveraged Currency | VTIP vs YCS | |
| ProShares Investment Grade-Interest Rate Hedged | -0.16 | -0.11 | -0.02 | 58 | Corporate Bonds | VTIP vs IGHG | |
| iShares BBB-B CLO Active ETF | -0.14 | — | — | 89 | CLO | VTIP vs BCLO | |
| WisdomTree Japan Hedged Equity Fund | -0.13 | -0.08 | -0.05 | 94 | Japan Equities, Asia Pacific Equities | VTIP vs DXJ |
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Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from VTIP, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to VTIP and solid risk/return profiles. The least correlated is Citigroup Inc. (C) (Financial Services) with a 1Y correlation of -0.14, down from 0.03 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Citigroup Inc. | -0.14 | -0.01 | 0.03 | 92 | Financial Services | |
| Wells Fargo & Company | -0.13 | -0.04 | -0.03 | 53 | Financial Services | |
| JPMorgan Chase & Co. | -0.12 | -0.02 | 0.00 | 69 | Financial Services | |
| Vertiv Holdings Co. | -0.12 | -0.07 | 0.03 | 93 | Industrials | |
| The Charles Schwab Corporation | -0.11 | -0.00 | -0.01 | 59 | Financial Services |
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Build a portfolio that complements VTIP
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