Looking to balance out your exposure to ARCC? The ETFs below have historically moved differently from ARCC, which may reduce portfolio volatility when combined in a suitable allocation. The stock ideas table highlights individual companies with the same low-correlation characteristics. Correlation can change and does not guarantee that one asset will rise when another falls.
Best Diversifiers for ARCC
122 ETFs have low correlation with ARCC (below 0.3), 11 of which are negatively correlated. The least correlated is KFA Mount Lucas Index Strategy ETF (KMLM) (Systematic Trend) with a 1Y correlation of -0.15, roughly unchanged from -0.11 over 5 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| KFA Mount Lucas Index Strategy ETF | -0.15 | -0.09 | -0.11 | 51 | Systematic Trend | ARCC vs KMLM | |
| Invesco Optimum Yield Diversified Commodity Strate... | -0.15 | 0.03 | 0.15 | 70 | Commodities | ARCC vs PDBC | |
| Invesco DB Commodity Index Tracking Fund | -0.14 | 0.04 | 0.15 | 68 | Commodities | ARCC vs DBC | |
| Harbor Commodity All-Weather Strategy ETF | -0.12 | 0.02 | — | 84 | Commodities | ARCC vs HGER | |
| First Trust Global Tactical Commodity Strategy Fun... | -0.09 | 0.06 | 0.16 | 86 | Commodities | ARCC vs FTGC |
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Low-Correlation Stock Ideas
The table shows companies with at least $1B in market capitalization, historical correlation data for ARCC, and a Risk / Return Rank of 50 or higher. Treat them as research candidates rather than evidence that they will offset a future decline. The least correlated is Altria Group, Inc. (MO) (Consumer Defensive) with a 1Y correlation of -0.09, down from 0.15 over 5 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Altria Group, Inc. | -0.09 | 0.06 | 0.15 | 66 | Consumer Defensive | |
| Occidental Petroleum Corporation | -0.07 | 0.13 | 0.26 | 68 | Energy | |
| Duke Energy Corporation | -0.06 | 0.11 | 0.16 | 52 | Utilities | |
| Johnson & Johnson | -0.06 | 0.08 | 0.12 | 96 | Healthcare | |
| AbbVie Inc. | -0.05 | 0.15 | 0.16 | 76 | Healthcare |
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