Looking to balance out your exposure to CCD? The ETFs below have the lowest correlation with CCD — they tend to move on their own, which can help reduce risk when CCD drops. The stock ideas table highlights individual companies that behave independently from CCD.
Best Diversifiers for CCD
2 ETFs have low correlation with CCD (below 0.3), 1 of which are negatively correlated. The least correlated is iShares 0-3 Month Treasury Bond ETF (SGOV) (Ultrashort Bond) with a 1Y correlation of -0.11, roughly unchanged from -0.03 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| iShares 0-3 Month Treasury Bond ETF | -0.11 | -0.04 | -0.03 | 100 | Ultrashort Bond | CCD vs SGOV | |
| VanEck AA-BB CLO ETF | 0.25 | — | — | 68 | CLO | CCD vs CLOB | |
| First Trust Nasdaq BuyWrite Income ETF | 0.60 | 0.54 | 0.55 | 85 | Nasdaq-100, Derivative Income | CCD vs FTQI | |
| Aptus Collared Income Opportunity ETF | 0.63 | 0.54 | 0.56 | 53 | Diversified Portfolio | CCD vs ACIO | |
| iShares Convertible Bond ETF | 0.70 | 0.63 | 0.65 | 87 | Preferred Stock/Convertible Bonds | CCD vs ICVT |
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Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from CCD, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to CCD and solid risk/return profiles. The least correlated is Altria Group, Inc. (MO) (Consumer Defensive) with a 1Y correlation of -0.26, down from 0.03 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Altria Group, Inc. | -0.26 | -0.08 | 0.03 | 69 | Consumer Defensive | |
| Plains All American Pipeline, L.P. | -0.09 | 0.16 | 0.24 | 87 | Energy | |
| LTC Properties, Inc. | -0.07 | 0.13 | 0.16 | 50 | Real Estate | |
| Enterprise Products Partners L.P. | -0.00 | 0.16 | 0.23 | 85 | Energy | |
| Energy Transfer LP | 0.03 | 0.22 | 0.27 | 69 | Energy |
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