Looking to balance out your exposure to ARCC? The ETFs below have the lowest correlation with ARCC — they tend to move on their own, which can help reduce risk when ARCC drops. The stock ideas table highlights individual companies that behave independently from ARCC.
Best Diversifiers for ARCC
86 ETFs have low correlation with ARCC (below 0.3), 7 of which are negatively correlated. The least correlated is United States Oil Fund LP (USO) (Oil & Gas) with a 1Y correlation of -0.14, down from 0.11 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| United States Oil Fund LP | -0.14 | 0.02 | 0.11 | 66 | Oil & Gas | ARCC vs USO | |
| ProShares Ultra Bloomberg Crude Oil | -0.12 | 0.04 | 0.13 | 54 | Leveraged Commodities | ARCC vs UCO | |
| Invesco Optimum Yield Diversified Commodity Strate... | -0.10 | 0.07 | 0.17 | 74 | Commodities | ARCC vs PDBC | |
| Invesco DB Commodity Index Tracking Fund | -0.09 | 0.08 | 0.17 | 75 | Commodities | ARCC vs DBC | |
| First Trust Global Tactical Commodity Strategy Fun... | -0.04 | 0.10 | 0.17 | 81 | Commodities | ARCC vs FTGC |
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Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from ARCC, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to ARCC and solid risk/return profiles. The least correlated is Altria Group, Inc. (MO) (Consumer Defensive) with a 1Y correlation of -0.13, down from 0.15 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Altria Group, Inc. | -0.13 | 0.06 | 0.15 | 69 | Consumer Defensive | |
| Monster Beverage Corporation | -0.11 | 0.11 | 0.17 | 79 | Consumer Defensive | |
| Johnson & Johnson | -0.09 | 0.05 | 0.11 | 92 | Healthcare | |
| Duke Energy Corporation | -0.08 | 0.11 | 0.16 | 53 | Utilities | |
| The Coca-Cola Company | -0.08 | 0.06 | 0.18 | 66 | Consumer Defensive |
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