Adding ETFs to diversify an equity portfolio

Trade Prophet

Trade Prophet

Any good ideas regarding ETFs with low correlation to equity ?
My portfolio is 80% equity and I would like to reduce equity exposure using ETFs,
Any ideas regarding ETFs that have near 0 correlation to equity?
Thanks
 
You'll want to look at long term bonds like $TLT and gold $GLD for low correlation to equities. Here's a backtest of a equal weighted portfolio of US stocks, long term treasuries and gold from 1978 until now. It's rebalanced annually.

af8bb3_c25c1af03e25421b90553162da42012a~mv2.png

af8bb3_6dff7efb0d3a4aaba49d3661b233ab83~mv2.png
 
Last edited:
StockChartist said:
You'll want to look at long term bonds like $TLT and gold $GLD for low correlation to equities. Here's a backtest of a equal weighted portfolio of US stocks, long term treasuries and gold from 1978 until now. It's rebalanced annually.

af8bb3_c25c1af03e25421b90553162da42012a~mv2.png

af8bb3_6dff7efb0d3a4aaba49d3661b233ab83~mv2.png
More...
What's the name of this software/website?
 
Trade Prophet said:
Any good ideas regarding ETFs with low correlation to equity ?
My portfolio is 80% equity and I would like to reduce equity exposure using ETFs,
Any ideas regarding ETFs that have near 0 correlation to equity?
Thanks
More...

The attached SPY_correlations.csv (semicolon-separated) has 3-year (or less because of lack of data), daily percent change correlations using the QuantDare method with SPY compared with 549 other ETFs created with data as of the close on December 3.

http://www.lazyportfolioetf.com/allocation/ has suggestions for different ETF allocations.
 

Attachments

You must log in or register to reply here.
Back
Top