Looking to diversify beyond DCRE? The ETFs below have the lowest correlation with DCRE — they tend to move on their own, which can help reduce risk when the rest of your portfolio drops. The stock ideas table highlights individual companies that behave independently from DCRE.
Best Diversifiers for DCRE
1897 ETFs have low correlation with DCRE (below 0.3), 51 of which are negatively correlated. The least correlated is ProShares UltraShort Yen (YCS) (Leveraged Currency) with a 1Y correlation of -0.18, up from -0.34 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| ProShares UltraShort Yen | -0.18 | -0.31 | -0.34 | 61 | Leveraged Currency | DCRE vs YCS | |
| First Trust Alternative Absolute Return Strategy E... | -0.15 | -0.11 | -0.11 | 70 | Commodities | DCRE vs FAAR | |
| VanEck Commodity Strategy ETF | -0.14 | -0.06 | -0.06 | 55 | Commodities | DCRE vs PIT | |
| Bastion Energy ETF | -0.12 | — | — | 75 | Energy Equities | DCRE vs BESF | |
| First Trust Global Tactical Commodity Strategy Fun... | -0.12 | -0.04 | -0.04 | 53 | Commodities | DCRE vs FTGC |
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Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from DCRE, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to DCRE and solid risk/return profiles. The least correlated is Reaves Utility Income Trust (UTG) (Financial Services) with a 1Y correlation of 0.13, roughly unchanged from 0.09 over 3 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Reaves Utility Income Trust | 0.13 | 0.09 | — | 81 | Financial Services |
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