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
78 ETFs have low correlation with ARCC (below 0.3), 2 of which are negatively correlated. The least correlated is First Trust Global Tactical Commodity Strategy Fund (FTGC) (Commodities) with a 1Y correlation of -0.03, down from 0.18 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| First Trust Global Tactical Commodity Strategy Fun... | -0.03 | 0.09 | 0.18 | 55 | Commodities | ARCC vs FTGC | |
| WisdomTree Floating Rate Treasury Fund | -0.03 | 0.00 | -0.04 | 100 | Government Bonds, Ultrashort Bond | ARCC vs USFR | |
| SPDR Bloomberg 1-3 Month T-Bill ETF | 0.01 | 0.02 | 0.00 | 100 | Government Bonds, Ultrashort Bond | ARCC vs BIL | |
| SPDR Bloomberg 3-12 Month T-Bill ETF | 0.02 | 0.02 | -0.04 | 100 | Ultrashort Bond | ARCC vs BILS | |
| Alpha Architect 1-3 Month Box ETF | 0.02 | 0.03 | — | 100 | Ultrashort Bond | ARCC vs BOXX |
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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 -0.11, down from 0.15 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Altria Group, Inc. | -0.11 | 0.06 | 0.15 | 72 | Consumer Defensive | |
| Monster Beverage Corporation | -0.09 | 0.11 | 0.18 | 85 | Consumer Defensive | |
| The Coca-Cola Company | -0.08 | 0.05 | 0.18 | 74 | Consumer Defensive | |
| Johnson & Johnson | -0.07 | 0.06 | 0.12 | 96 | Healthcare | |
| Eagle Point Credit Company Inc. | -0.07 | 0.01 | 0.05 | 80 | Financial Services |
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