Looking to balance out your exposure to EFC? The ETFs below have the lowest correlation with EFC — they tend to move on their own, which can help reduce risk when EFC drops. The stock ideas table highlights individual companies that behave independently from EFC.
Best Diversifiers for EFC
6 ETFs have low correlation with EFC (below 0.3), 0 of which are negatively correlated. The least correlated is VanEck CLO ETF (CLOI) (CLO) with a 1Y correlation of 0.02, roughly unchanged from 0.01 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| VanEck CLO ETF | 0.02 | 0.03 | 0.01 | 97 | CLO | EFC vs CLOI | |
| Global X NASDAQ 100 Covered Call ETF | 0.18 | 0.32 | 0.39 | 88 | Nasdaq-100, Derivative Income | EFC vs QYLD | |
| Janus Henderson AAA CLO ETF | 0.18 | 0.17 | 0.10 | 98 | CLO | EFC vs JAAA | |
| JPMorgan Nasdaq Equity Premium Income ETF | 0.20 | 0.36 | — | 74 | Nasdaq-100, Derivative Income | EFC vs JEPQ | |
| Goldman Sachs Nasdaq-100 Core Premium Income ETF | 0.21 | — | — | 81 | Nasdaq-100, Dividend | EFC vs GPIQ |
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Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from EFC, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to EFC and solid risk/return profiles. The least correlated is Energy Transfer LP (ET) (Energy) with a 1Y correlation of -0.01, down from 0.33 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Energy Transfer LP | -0.01 | 0.22 | 0.33 | 69 | Energy | |
| Altria Group, Inc. | 0.02 | 0.18 | 0.24 | 69 | Consumer Defensive | |
| FLEX LNG Ltd | 0.04 | 0.16 | 0.19 | 81 | Energy | |
| Verizon Communications Inc. | 0.13 | 0.18 | 0.23 | 59 | Communication Services | |
| BlackRock Science and Technology Trust II | 0.15 | 0.32 | 0.38 | 95 | Financial Services |
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Build a portfolio that complements EFC
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